Deutsche Wohnen AG Completes €1.8 Billion Capital Measures

February 27, 2017

S&C client Deutsche Wohnen AG completed capital measures with a total volume of approximately €1.8 billion. The measures comprised private placements in accelerated bookbuild offerings with institutional investors of (i) approximately 17.1 million newly issued shares in the aggregate amount of €545 million (€31.75 per share) and (ii) convertible bonds, maturing in 2024, with a nominal amount of €800 million and a conversion premium of 53 percent above the placement price of the concurrent share placement. As the third leg of the transaction, parts of the proceeds were used for the repurchase, through a tender offer process, of outstanding convertible bonds issued by Deutsche Wohnen AG in 2013 and held by investors outside of the United States. Nearly 99 percent of these convertible bonds were tendered by their holders for a total consideration of approximately €460 million. The remaining proceeds will be used primarily for financing the acquisition of a nursing home portfolio recently announced and future acquisitions.

Deutsche Wohnen AG is one of the largest publicly listed real estate companies in Germany and Europe with a market capitalization of around €11 billion. As at 30 September 2016, the portfolio comprised a total of 160,474 units, of which 158,274 were residential and 2,200 commercial.

The S&C team representing Deutsche Wohnen AG was led by Konstantin Technau and Carsten Berrar, along with Lars Rüve, Wolfram von Frankenberg, Dariush Bahreini and Philip Frerks. Krystian Czerniecki and Clemens Rechberger advised on U.S. matters.