Real estate portfolio financing for DEFAMA Deutsche Fachmarkt AG

Sector(s)
Consumer / Food & Agro
Deal type
Debt Advisory
Date
December 2022
Countries involved
Germany

Client

The DEFAMA Deutsche Fachmarkt AG is a portfolio holder specializing on retail properties in small and medium-sized towns, particularly in northern and eastern Germany

Deal

Capitalmind has advised DEFAMA Deutsche Fachmarkt AG on the issuance of a secured portfolio real estate acquisition financing

Parties

Lead team

  • Torsten Aul

    Torsten Aul

    Partner Germany

About the deal

DEFAMA Deutsche Fachmarkt AG (DEFAMA) invests in retail properties in German speaking countries, predominantly in northern and eastern Germany. The broadly diversified portfolio includes 62 retail properties with a total of more than 240,000 sqm of usable space, 95% of which is rented. The annualized annual net rent amounts to about 20 million euros.

The market value of the portfolio is around 250 million euros. The largest tenants include ALDI, EDEKA, LIDL, Netto, NORMA, Penny, REWE, Getränke Hoffmann, JYSK, Deichman, Takko and Toom.

The object of this transaction was to advise on the conclusion of a secured real estate financing for DEFAMA Deutsche Fachmarkt AG in Rhineland-Palatinate with maximum loan-to-value ratio at best conditions. The funds provided by a bank were used to acquire a portfolio of four properties in the Westerwald region in Lahnstein, Hachenburg and Heiligenroth.

Capitalmind supported the shareholders and the management throughout the entire transaction process. We ensured that our client’s interests and expectations were met and ensured a time-efficient process.

“With Capitalmind as a reliable partner, we were able to achieve our goals for this important portfolio acquisition. Even in times of great uncertainty in the real estate industry as well as sometimes extreme movements in the interest rate market, we felt very well advised at all times. We thank Capitalmind for the very professional and trustful cooperation.” Matthias Schrade Management Board, Founder and Shareholder DEFAMA Deutsche Fachmarkt AG

What we did

Capitalmind advised the board of directors, founders, and shareholders of the company on the structuring and implementation of the financing, identified potential financing partners and coordinated and consistently drove the entire financing process. In addition, we supported DEFAMA in preparing the necessary documentation. We advised our client in the negotiations with potential financing partners from the first contact to the closing with the optimal partner.