Noerr advises Baader Bank on Deutsche Industrie REIT-AG’s capital increase

oerr has advised Baader Bank AG on a capital increase of Deutsche Industrie REIT-AG, with subscription rights for existing shareholders and a private placement to new shareholders. In total around 4.5 million shares of the light-industrial real estate investor were placed at a price of €11.00 per share, generating gross proceeds of around €49.5 million.

In late December of last year, the company was able to gain new shareholders as part of the capital increase that was successfully completed and fully placed, despite the uncertainties in the capital markets. With the innovative transaction structure chosen by the company, approximately two-thirds of the new shares were sold through a private pre-placement which was made possible by the assignment of subscription rights of existing shareholders. The remaining one-third of the shares were allocated in the subsequent two-week subscription period, a following rump placement and due to a backstop commitment from the Obotritia Group.

Apart from the listing of the new shares at the Berlin Stock Exchange the company’s entire share capital was initially admitted to listing on the regulated market (Prime Standard) at the Frankfurt Stock Exchange. Since the beginning of 2018, the company holds the status of a “real estate investment trust” (REIT) and the related income tax exemption. The net proceeds from the capital increase are to be used to finance further acquisitions in order to continue the company’s growth.

The lead of the transaction was shared by Noerr’s Frankfurt partners Laurenz Wieneke and Dominik Kloka. Noerr’s Capital Markets team advises Baader Bank AG regularly on capital market transactions and matters involving capital markets regulation.

Advisors to Baader Bank AG: Noerr LLP

Dr Laurenz Wieneke, Dr Dominik Kloka (Frankfurt, joint lead), Dr Stephan Schulz (Hamburg, all Capital Markets), Sebastian Bock (Banking & Finance), Dr Matthias Geurts (Tax, both Frankfurt), Associates: Dr Anca David (Hamburg), Dominique Stütz (Frankfurt, both Capital Markets).