Noerr advises DEMIRE on successful placement of €600m bond

Noerr has advised DEMIRE Deutsche Mittelstand Real Estate AG, a company holding commercial real estate in mid-sized cities and up-and-coming peripheral locations around German metropolitan areas, on the successful issue of a €600m benchmark bond. The bond has a coupon of 1.875% and a term of five years. It was placed exclusively with institutional investors.

The proceeds from the bond placement will be used to refinance the outstanding bond due in 2022 and other debt, as well as for general business purposes.

The conditions under the new bond and the repayment of existing debt will significantly improve the firm’s overall financing and maturity profile and reduce its average pro-forma interest rate to below 2.0%.

The bond notes have a denomination of €100.00 and will be listed on the Luxembourg Stock Exchange. The bond has been rated BB+ by S&P and Ba2 by Moody’s. Morgan Stanley and Deutsche Bank acted as joint global coordinators and joint bookrunners. J.P. Morgan was involved in the bond issue as joint bookrunner and Commerzbank as co-lead manager.

A Noerr team headed by Holger Alfes acted for DEMIRE. Clients already advised by the team this year include Fresenius Medical Care on the successful placement of a US$500m bond.

Advisors to DEMIRE Deutsche Mittelstand Real Estate AG: Noerr LLP

Dr Holger Alfes (lead), Dr Julian Schulze De la Cruz, Dr Dominik Kloka, Dominique Stütz (all Capital Markets), Radoslaw Biedecki (Real Estate Investment Group, Warsaw), Dr Alexander Schilling (Banking & Finance), Dr Martin Haisch, Dr Matthias Geurts (both Tax, all Frankfurt), Anne-Kristin Schiller (Capital Markets, New York), Piotr Zabkiewicz (Corporate/M&A, Warsaw)