Terra Firma to refinance Deutsche Annington

The company's €4.3bn debt burden is set to mature in part by July 2013. At the moment, it represents the largest single securitised loan in Europe. The company holds around €5bn of multi-family commercial mortgage-backed securities that will fall in 2013. The possible €500m equity injection by Terra Firma itself could include loan write-downs and would reduce the loan-to-value ratio of the business to 60%.

Terra Firma's dedicated fund Terra Firma Deutsche Annington (TFDA) holds 84.3% of the business. The remaining stake is held by Citigroup.

Deutsche Annington holds a commcercial and residential real estate portfolio of 180,000 houses and apartments in Germany. Terra Firma acquired the company in February 2001 for approximately €2bn, including a €833m debt package provided by KfW and Landesbank Hessen-Thüringen Girozentrale. 

In 2005, Terra Firma led the add-on acquisition of Viterra, a real-estate portfolio worth €5.4bn.

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• Topics
• DACH
• Real estate
• Terra Firma
• Germany
• Recapitalisation