Deutsche Leibrenten AG Raises Additional Financing / Attractive Market Outlook For Property-Based Pension Plans
Deutsche Leibrenten Grundbesitz AG has raised an additional 25 million euros via a convertible bond. This indicates the level of trust placed in Germany’s market leader for property-based pension plans by the institutional investors involved. Operating in a market which demonstrates further demand growth, the Frankfurt-based company continues to provide a safe and secure product for its elderly customer base.
“The solid expansion work over recent years and our rigorous alignment towards the ESG-related criteria of our product range are attracting ever greater attention from the capital markets”, says CEO Friedrich Thiele. The bond scheme is based on an enterprise appraisal that values the company in excess of 300 million euro. Obotritia Capital KGaA remains the majority shareholder of Deutsche Leibrenten AG with a stake of 95 percent.
Obotritia’s founder, Rolf Elgeti, comments: “While the possibility of a property pension element as part of retirement financing was undervalued in the past, it has now firmly established itself on the market and is on the cusp of further development. The growth we have exhibited during the past year – despite the corona pandemic – has demonstrated that having your own home is not just a safe place to be, but also a way of financially securing a pension over the long term.”
Deutsche Leibrenten AG has filled a niche within the pension financing sector and it continues to expand successfully. “The product we offer makes us an intriguing partner for increasingly larger numbers of financial service providers. Alongside 450 brokers, we are now also operating in partnership with approximately 150 savings banks and co-operative banks which have identified property pension schemes as a long-term solution for their clients”, explains the CEO of Deutsche Leibrenten AG. Additional partnerships with important players in the financial sector are expected over the coming months.
Deutsche Leibrenten AG is currently managing about 110,000 square metres of residential space diversified throughout Germany. In 2020, despite the difficult underlying conditions caused by the corona pandemic, Deutsche Leibrenten AG 2020 signed new contracts with a total value of 120 million – double the volume versus previous years.
“We are aiming to maintain our successful path of growth and continue full steam ahead with the further development of this exciting area of using real estate-based pension plans”, says Mr. Thiele. “And in future we will continue to exploit the opportunities offered to us by the capital and financial markets.”
About Deutsche Leibrenten Grundbesitz AG – www.deutsche-leibrenten.de
Deutsche Leibrenten Grundbesitz AG offers pensioners the option of selling their property without having to move out of their home. The sellers have a life-long right of residence based on legal usufruct principles – all fully notarised and entered with priority ranking in the land register – and will receive a monthly pension and/or a one-off payment. The Frankfurt-based corporation acquires properties throughout Germany and is supported by its majority shareholder Obotritia Capital KGaA, based in Potsdam.
Deutsche Leibrenten currently owns more than 800 properties. This makes it Germany’s leading provider of property-based pensions, and the company is Germany’s only member of the European Pensions and Property Asset Release Group (EPPARG).