Deutsche Annington uses €700m hybrid in €2.4bn flats acquisition

Deutsche Annington homes for new website
By Jon Hay
03 Apr 2014

Deutsche Annington, the German housing company part-owned by Terra Firma, issued its first hybrid capital bond on Tuesday, raising €700m. It was the first large hybrid capital issue from a European property company, bankers said, and demonstrated clearly how the instrument can be used in acquisition finance.

The deal was designed as part of the financing for Deutsche Annington’s acquisition, announced in February, of 41,500 flats for €2.4bn including assumed debt.

The company has completely renewed its capital structure in the past two years, after its €5.5bn securitisation from 2006 proved un-refinanceable on a like-for-like ...

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