Pension fund finances continued growth of Deutsche Leibrenten AG
Deutsche Leibrenten Grundbesitz AG is funding its strong growth with the support of noted German institutional investors. The amount of convertible bonds issued in November 2019, a total of 50 million euro, has been increased by a further 25 million euro. This activity provides the market leader in property-based pension plans with additional growth capital to increase its acquisitions by a further 50 percent this year.
“Deutsche Leibrenten AG’s property-based pension plan is the most sustainable pension product in Germany and satisfies the strict criteria of ESG-focused investors”, says its CEO, Friedrich Thiele. “We are delighted that the capital markets recognize the great potential here and appreciate the continued support of our expansion strategy.” Underpinning the bonds is an enterprise valuation of 320 million euro.
The majority shareholder, Rolf Elgeti, continues to hold 95 percent of the shares through his company Obotritia Capital KGaA. “With this increase, we are again expanding the capital base of Deutsche Leibrenten AG”, says Chairman of the Supervisory Board, Mr. Elgeti. “Our aim is to permanently establish property-based pension plans within Germany, and to continue building on our history of success.”
The Frankfurt-based company has achieved significant milestones despite the Covid-19 pandemic. In 2020 Deutsche Leibrenten AG signed new contracts with a total value of 120 million euro, approximately doubling the size of the company year over year. The company target is to increase its transaction volume further to 175 million euro in 2021. Through its own portfolio, Deutsche Leibrenten AG is currently managing just under 100,000 square metres of residential space.
Deutsche Leibrenten plans to generate strong growth in the coming years through improvements to its operating platform, among other measures. Beginning in 2020 the company has enhanced its distribution channels with the creation of its own branch offices established throughout Germany. These branches complement the work performed in partnership with some 600 real estate brokers around the country. Seven branch offices have already opened and a further four are expected by the middle of 2021.
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 own 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 sole provider of these kinds of pension products, the Frankfurt-based corporation acquires properties throughout Germany, supported by its majority shareholder, Obotritia Capital KGaA, from its base in Potsdam.