The management board of diversified real estate company UBM Development AG struck a deal with PORR AG under which UBM will pay back €50.0 million, plus applicable interest, of mezzanine capital provided by PORR.

After the transfer of PORR's real estate business to PIAG Immobilien AG in 2014 and the succeeding merger of PIAG and UBM in February 2015, UBM assumed the mezzanine credit agreement between PIAG and PORR.

The company settled €50.0 million of the total in December 2015, leaving an outstanding balance of €50.0 million.

This liability is likely to be repaid in early April, before the originally agreed-upon contractual term. The early settlement will be partly financed by a €100.0 million hybrid bond issued in February.