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Deutsche Leibrenten issues a?50 million convertible bond

Deutsche Leibrenten Grundbesitz AG has issued a 50 million euro convertible bond. The securities were fully underwritten by a prominent institutional investor with a long-term investment focus.

“At one time a niche sector, Deutsche Leibrenten has significantly developed the German real estate annuity market over the last four years”, says Friedrich Thiele, CEO of Deutsche Leibrenten Grundbesitz AG. “The capital markets have demonstrated strong interest in our product and our company. It is extremely pleasing to see institutional investors are recognising the potential of real estate annuity products and lending their strong support to our expansion plans.” With the bond underpinned by an enterprise valuation of 295 million euro, our company is demonstrating its market profile and prospects for development. The bond will secure the growth of the business over the next few years.”

To date, the market leader for real estate annuity plans in Germany has financed its growth solely on an equity basis. The majority shareholder with 95 percent of the shares is investment company Obotritia Capital KGaA, led by its general partner Rolf Elgeti.

“Deutsche Leibrenten Grundbesitz AG is developing a new method of pension funding, a market with a long-term future in Germany. As such, we are helping to solve a key social problem, while offering our partners in the finance industry an important component for the future-proofing of their business”, says Rolf Elgeti, Chairman of the Supervisory Board of the Frankfurt-based enterprise. “With the issue of this convertible bond, we are broadening our company–s capital base to enable us to make property annuity plans an attractive real estate product within Germany.”

The convertible bond has a term of seven years. Legal advice on the issue was provided by Noerr Rechtsanw

Deutsche Leibrenten Grundbesitz AG offers pensioners the opportunity to sell their property without having to move out of their own home. Property sellers receive a life-long right to live in the property in accordance with the principles of usufruct law – all secured by a notarial deed and entered in the land register – while receiving a monthly annuity and/or a one-off payment. As the sole provider of property annuity products, the Frankfurt-based company purchases real estate nationwide.

Deutsche Leibrenten currently has an inventory of more than 350 properties. That makes it the market leader in the real estate annuity market in Germany. It is the sole German member of the European Pensions and Property Asset Release Group (EPPARG).

Deutsche Leibrenten AG is a non-listed company. Its majority shareholder is Obotritia Capital KGaA, based in Potsdam.


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