Hypo Real Estate Bank AG finances the purchase of DGAG Deutsche Grundbesitz AG by Pirelli RE (DE)

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

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