Refinancing for Concept – Real GmbH

Sector(s)
Consumer
Deal type
Debt Advisory
Date
January 2022
Countries involved
Germany

Client

Concept-Real GmbH is a Munich based residential property company

Deal

Capitalmind has advised Concept-Real GmbH on a €397m refinancing of the company's debt

Parties

Lead team

  • Thorsten Gladiator

    Thorsten Gladiator

    Partner Germany

About the deal

CAPITALMIND ADVISES CONCEPT-REAL GMBH ON THE REFINANCING OF A RESIDENTIAL REAL ESTATE PORTFOLIO

Founded in the early 90s by Munich-based entrepreneur Erich W. Schwaiger,  Concept-Real GmbH develops and manages residential real estate in the Munich area.

With over 2000 units, the company manages >1 billion in assets.

Under the existing financing structure, each property company was financed individually by several lenders and tranches. In total, the portfolio was moderately leveraged and thus had a comparatively low LTV (<40%).

In the course of the refinancing, the existing portfolio was split into two financing groups. We managed to obtain a new financing from an insurance lender. As a result, the LTV was significantly increased to 60%, and the interest rates of the current financing were substantially reduced to 2.25% with a 25-year maturity. For the second financing group the existing lender increased its exposure to >50% LTV.

The refinancing enables Concept-Real GmbH to invest the freed-up capital in future projects.

The transaction underlines Capitalmind’s expertise in debt advisory in the real estate sector.

“The refinancing is a major step for implementing the long-term strategy of my group. Due to Capitalmind’s placement power and management of a highly competitive process we were able to maximize the LTV and to achieve the best possible terms. It has been a pleasure working together with the Capitalmind team.” Erich W. Schwaiger CEO, Founder & Owner Concept-Real GmbH

What we did

Capitalmind advised Concept-Real GmbH on the refinancing of parts of its property portfolio, including: Preparing a feasibility study, mapping out the process strategy and preparation of all marketing documents, approach and education of domestic and international investors, preparation and coordination of due diligence process including data room and Q&A, advice on financing structure, negotiation support of commercial deal parameters and facility documentation.