Hypo Real Estate Bank AG a member of the Hypo Real Estate Group has financed the acquisition of a German office building portfolio ("core portfolio") for a special-purpose vehicle of IVG Immobilien AG. In total, the bank has made available a long-term loan and an equity purchasing bridging loan of more than €1 billion. In addition, the bank concluded a further transaction for €1 billion several days ago.
Georg Funke, CEO Hypo Real Estate Holding AG, commented, "These transactions stand as examples for the continued positive development of the group's business. We are reaping the benefits from the fact that we only provide support to professional customers in the commercial real estate market and that we are not engaged in the private housing finance market. Even in these more difficult times, I can thus confirm the positive operating trend of recent months for the Hypo Real Estate Group. New business is developing as planned. The results of Hypo Real Estate Group for the ongoing quarter and also for the full year have developed according to plan. The strength of institutions which are funded on a long-term basis is demonstrated in these more difficult times. We covered our medium-term and long-term funding requirement for the current year on favourable terms in the first half. As a result of rising margins, we consider that we will face business opportunities which are also consistent with our conservative risk profile. Following the completion of the DEPFA transaction, we will emerge strengthened from this market situation."
Source: Hypo Real Estate
