Hypo Real Estate Bank AG is financing the purchase of 96.83% of DGAG Deutsche Grundvermögen AG (DGAG) by the Italian Pirelli & C. Real Estate S.p.A. (Pirelli RE). For this purpose, the bank has now provided Pirelli RE with bridge financing for purchasing a share package of the company and closing costs of around 290 million.
In order to refinance this bridge facility and also to optimise existing financing structures, Hypo Real Estate Bank AG will also provide further financing of approx. 900 million to Pirelli RE in the course of the next few months. The credit agreements were signed in December 2006.'
DGAG holds approx. 22,500 apartments - mainly in Hamburg, Kiel and Lübeck as well as numerous commercial properties, most of which are located in the region of Greater Hamburg.
Source: Hypo Real Estate Bank AG