Noerr has advised IKB Deutsche Industriebank AG (IKB) on the successful placement of a bond of Deutsche Real Estate Funds (DREF). With a volume of € 44 million, this issue marks a novelty on the capital market: for the first time a bond is placed to finance student housing.

The proceeds from the issue serve to buy and renovate five student residences in several German cities. Close to 1,000 students will be able to move into the renovated properties as early as in autumn this year. The bond is secured by first-rank land charges and thus has an investment grade rating from Creditreform (BBB).

IKB acted as Sole Bookrunner and together with equinet Bank AG as Joint Lead Manager in the transaction. BankM was Co-Lead Manager. Placed via Deutsche Studenten Wohn Bond I S.A as issuing vehicle, the bond was subscribed by major institutional investors from Germany. The coupon of the five-year paper is 4.675 per cent p.a.

Advisors to IKB Deutsche Industriebank AG (IKB): Noerr LLP

Dr. Sebastian Wulff (Capital Market); Andreas Naujoks (REIG/Finance, joint lead, both Frankfurt)

Associate: Dr. Maximilian Schulte (REIG/Real Estate, Düsseldorf)

Luxembourg law: Bonn & Schmitt, Luxembourg, Dr. Philipp Mössner

Inhouse law (IKB): Jan Burchards