Instone Real Estate Successfully Concludes Announced Financing Measures to support Long-Term Business Growth

Instone Real Estate Successfully Concludes Announced Financing Measures to support Long-Term Business Growth

- Around 400 million euros corporate level financings secured

- Cost of debt and complexity of corporate level financing structure reduced

- New structure is based on three financing instruments, arranged with diversified group of lenders

- Termed out corporate level debt maturities to between three and five years

Essen, 18 December 2019: Residential developer Instone Real Estate successfully completed the reorganisation of its corporate financing. New financing arrangements for a total amount of around 400 million euros will support Instone's mid term growth strategy. Available funds including cash and undrawn lines expected to amount to approximately 200 million euros at year end 2019.

Foruhar Madjlessi, CFO of Instone Real Estate, elaborated on the key rational of the refinancing: "Firstly, we intend to unravel the complexity of our funding structure by concentrating our corporate level financings entirely on the level of Instone Real Estate Group AG. Secondly, we have diversified our financing instruments and broadened the debt investor base. Thirdly, we have successfully termed out our debt maturities." He adds: "By reorganising our corporate level financing, we have implemented a sound and stable foundation for our continued future growth."

The refinancing is based on the following three pillars. First, a syndicated credit facility of up to 200 million euros provided by Deutsche Bank, of which 75 million euros have been drawn down so far. Second, 106 million euros promissory notes arranged by IKB Deutsche Industriebank. Third, a syndicated three-year recurring credit facility (RCF) for an aggregate amount of up to 84 million euros. The three-year RCF with its two one-year extension options was arranged by Sparkasse Hannover. "To see a syndicate led by Sparkasse Hannover provide a credit line of this magnitude is impressive and proves the strength and relevance of the savings bank sector," Madjlessi says. The maturities of the new facility agreements all range from three to five years. Going forward, it is planned to continue diversifying the investor base further. A corporate bond issuance remains a possibility.

Aside from its corporate financing, Instone signed project financing arrangements in an aggregate amount of 331 million euros in 2019. These are secured project level of its operating subsidiaries. In addition Instone has successfully expanded the amount of available guarantee lines by around 93 million euros to around 280 million euros.

About Instone Real Estate (IRE)

Instone Real Estate is one of Germany's leading residential developers and is listed in the SDAX. The company develops attractive multi-family and residential buildings as well as publicly subsidized housing, designs modern urban quarters and refurbishes listed buildings for residential use. Buyers are mainly owner-occupiers, private investors intending to buy and let, and institutional investors. In over 28 years, Instone Real Estate successfully developed more than one million square metres. Around 360 employees work at nine locations nationwide. As of 30 September 2019, the company's project portfolio comprised 52 development projects with an expected total sales volume of roughly 5.4 billion euros and more than 12,000 units.

Press Contact
Instone Real Estate
c/o RUECKERCONSULT GmbH
Anke Reiss
Wallstrasse 16
D-10179 Berlin
Tel.: +49 (0)30 2844987-61
E-mail: [email protected]