Hamborner REIT AG placed €75 million worth of promissory note loans with the proceeds partially marked for a newly agreed €42.8 million property acquisition in Darmstadt, Germany.
The originally planned volume of the note issuance was €50 million, which was increased due to high demand.
The notes were issued with maturities of five years and seven years with both fixed and floating interest rates.
The company has signed a contract to acquire a commercial property from a German bank. The property, in the Darmstadt-Nord district, has roughly 70% retail space along with an office section. The retail space is leased to REWE and the office tenants include Herbalife and Alcan Systems.
The deal reflects a gross initial yield of 5.6% when considering the roughly €1.6 million of expenses required for maintenance. The property produces annual rental income of €2.5 million.
The asset is provisionally scheduled to be transferred in the second quarter.