Colonia Real Estate AG / Contract
17.03.2009
Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Colonia Real Estate: Successfully refinancing northern German real estate
portfolio
* US Bank waives mortgage of 8.4 million Euros
* State owned development bank agrees on additional object binding credit
line of 8.0 million Euros
Cologne, March 17, 2009 - Colonia Real Estate AG (ISIN DE0006338007)
finalizes debt restructuring of their real estate portfolio in
Schleswig-Holstein with c. 1,600 residential units after negotiations with
the involved banks. Corresponding, new contracts with a total volume of 34
million Euros have been signed by the parties and led to a significant debt
reduction of the subsidiary CRE Wohnen Immobilien GmbH & Co.KG.
On the back of the new loans by the state owned development bank the CRE
subsidiary signed a transfer agreement with an US bank, which waived a
total of 8.4 million Euros of the outstanding debt for a profit
participation warrant and an additional 3.5 million Euros in potential
pre-payment penalties. On top of the release payment the CRE subsidiary
received an additional credit line by the state owned development bank of
up to 8.0 million Euros. The interest rate for the entire refinancing is
fixed at c. 5 percent p.a. for the next 10 years. The development bank,
which already financed the energetic modernization of the residential
units, is now the sole bank financing this portfolio.
The positive impact of the debt waiver will be affective already in first
quarter of 2009, improving the balance sheet and debt structure of Colonia
Real Estate. The additional credit of 8.0 million Euros will be used to
refurbish the apartments in Schleswig-Holstein during the next years thus
being fully beneficial to the tenants. Colonia Real Estate expects an
accelerated reduction of the current vacancy in the northern German
properties and an increased valuation.
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Information and Explaination of the Issuer to this News:
'In completing the refinancing of our northern German residential portfolio
we made another step in successfully restructuring our debt structure and
improving recurring cash flow. Despite the fact, that we have no
significant refinancing due until the end of 2011 we use the current market
environment to continuously improve our loan portfolio and deleverage our
balance sheet', stated Stephan Rind, CEO of Colonia Real Estate AG, shortly
after the signing of the contracts.
With around 20,000 residential units and total assets of approx. 900
million Euros, Colonia Real Estate is Germany's third largest publicly
traded residential property company. The asset management of the CRE Group
is responsible for more than 1.6 billion Euros real estate assets under
management for third parties.
Contact:
Stephan Rind
CEO
Thomas Busch
Head of Investor Relations, Communication and Marketing
Colonia Real Estate AG
Zeppelinstr. 4-8
50667 Cologne, Germany
Phone: +49 (0)221 71 60 71 0
Fax: +49 (0) 221 71 60 71 99
E-Mail:ir@cre.ag
DGAP 17.03.2009
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Language: English
Issuer: Colonia Real Estate AG
Zeppelinstr. 4 - 8
50667 Köln
Deutschland
Phone: +49 221-716071-0
Fax: +49 221-716071-99
E-mail: info@cre.ag
Internet: www.cre.ag
ISIN: DE0006338007
WKN: 633800
Indices: SDAX, GPR 250, MSCI Germany Small Cap Index, FTSE EPRA/
NAREIT, E&G DIMAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hannover, München, Hamburg, Düsseldorf, Stuttgart
End of News DGAP News-Service
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DGAP-Adhoc: Colonia Real Estate AG: Successfully refinancing northern German real estate portfolio
| Source: EQS Group AG