HAMBORNER REIT AG places promissory note loans of EUR75 million and continues growth with acquisition of a property in Darmstadt
Duisburg, 23 March 2018 - HAMBORNER REIT AG has taken advantage of the current good conditions on the capital market and successfully placed promissory note loans with a total volume of EUR75 million. The notes were issued with maturities of five and seven years and with both fixed and floating interest rates. The originally planned volume of EUR50 million was increased significantly thanks to the high demand.
The current weighted average interest rate is 1.5% with an average term of 5.3 years. "We are delighted by the high level of interest in our first promissory note loans. The issue helps to further reduce our average financing costs while at the same time diversifying our financing structure," said the members of HAMBORNER's Management Board Dr Rüdiger Mrotzek and Hans Richard Schmitz. The placement was structured and arranged by Commerzbank AG, Frankfurt/Main.
HAMBORNER will soon be investing some of the proceeds from the promissory note loans into a further high-quality property. This week the purchase contract was signed for a commercial property in Darmstadt. The acquisition is for a large-scale retail property with a separate office section in an established commercial area in the Darmstadt-Nord district, around four kilometres from the city centre. With roughly 30,000 inhabitants, Darmstadt-Nord is the city's most heavily populated downtown district, and is distinguished by its proximity to the A5 motorway and its convenient access to public transport.
The retail space, which accounts for around 70% percent of the rental space, is leased to REWE on a long-term contract. The office tenants include Herbalife and Alcan Systems. The weighted term of the leases is around six years. The annual rental income amounts to EUR2.5 million. The purchase price of the property is EUR42.8 million. In consideration of required maintenance expenses of approximately EUR1.6 million, the gross initial yield is 5.6%. The property is being sold by a German bank, which was advised by Credit Suisse Asset Management. Wrangel Real Estate brokered the transaction.
Payment of the purchase price and transfer of possession of the property are provisionally scheduled for the second quarter of 2018.
HAMBORNER REIT AG is a stock exchange-listed public limited company that exclusively operates in the property sector and is positioned as a portfolio holder for high-yielding commercial properties. The company has sustainable rental incomes, with a nationally-dispersed substantial property portfolio as its foundation. Attractive retail trade spaces in key town centre sites of German cities and intermediate centres form the focal point of the portfolio. In addition, the property portfolio includes highly-frequented specialist stores and profitable office buildings, as well as spaces for medical practices.
HAMBORNER REIT AG stands out due to its many years of experience in the property and capital market, its lean and transparent corporate structure as well as its special proximity to the tenants. Since February 18, 2010 HAMBORNER has been a registered Real Estate Investment Trust (REIT) and benefits at company level from exemption from corporation and trade tax.
End of Media Release
Issuer: HAMBORNER REIT AG
Key word(s): Real estate
|Company:||HAMBORNER REIT AG|
|Listed:||Regulated Market in Dusseldorf, Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; London, SIX|
|End of News||DGAP Media|