DIC announced today the signing of a credit arrangement for €960m for the commercial portfolio. The new loan with an overall term of seven years will be used to prematurely repay the existing financing arrangements signed with several banks for the commercial portfolio.
The new financing arrangement was underwritten by Deutsche Hypothekenbank (€510m) as joint lead manager as well as by Berlin Hyp (€250m) and HSH Nordbank (€200m). For Deutsche Hypothekenbank it is the largest financing transaction in their history.
Within the framework of its business plan, the new credit arrangement gives DIC a high degree of planning security and already takes into account the transaction volumes planned with regards to the continuous optimisation of the commercial portfolio in the years to come.
The newly negotiated credit arrangement lowers the interest rate on the commercial portfolio's bank loans to circa 1.7 percent, a drop of 170 basis points compared to the previous financing conditions.
Closing these transactions will be instrumental in strengthening the future financial and earnings position of DIC. Projects funds from operations between €55m and €60m are expected in the 2017 financial year.
Jörg H. Becker of Bögner, Hensel and Partners provided legal counsel to DIC for the transaction.
