NORD/LB and ERGO Versicherungsgruppe finance acquisition of municipal housing in Berlin
- Finance provided for the acquisition of a portfolio by Gewobag in Berlin
- Transaction between the bank and the insurance industry with collateral provided by refinancing register
NORD/LB Norddeutsche Landesbank has, together with ERGO Versicherungsgruppe, provided finance for the acquisition of a residential property portfolio by Gewobag Berlin in the amount of EUR 87 million. EUR 54 million of the loan is financed by ERGO with a fixed interest rate for 20 years. The residential housing portfolio comprises 1,058 residential and commercial units in Berlin, which Gewobag has integrated into its total portfolio of 58,000 residential units.
The collateral for the finance provided by the consortium partner ERGO Versicherungsgruppe was provided by registering in NORD/LB’s refinancing register. From this year, when acquiring credit portfolios, insurance companies and pension funds can register the mortgages associated with the receivables in a refinancing register. “This makes the refinancing of large property portfolios easier and more efficient,” explains Eckhard Forst, who is a member of NORD/LB’s Managing Board and is responsible for corporate customer business, which also includes housing.
Easier for institutional investors to gain access to syndicate finance
NORD/LB is therefore one of the first banks in the housing segment to enter into a loan syndication with the registration of an insurance company in the refinancing register. It has therefore answered the increasing demand of institutional investors looking for alternative investment opportunities in an environment of low interest rates. “We have increased our refinancing options and can release equity to award new loans by reducing risk-weighted assets,” explains Dr. Hinrich Holm, who is responsible on NORD/LB’s Managing Board for capital market business. “In doing so we enable further growth in the bank’s housing segment and support the relationship between municipal housing and the socially-responsible provision of housing in Berlin,” explains Holm.
Gewobag is one of Germany’s leading property companies. Its portfolios are located in Berlin and Brandenburg and comprise around 58,000 rental residential units and 1,500 commercial units. It also provides special services for the elderly. Gewobag’s property portfolio is representative of the diversity of Berlin and provides a solid base in the regional housing market. Social neighbourhood development, climate protection and economic efficiency are equally important for Gewobag in the development of future-oriented concepts.
About ERGO Versicherungsgruppe
ERGO is one of the biggest insurance groups in Germany and Europe. It is represented in over 30 countries worldwide and concentrates on the regions of Europe and Asia. ERGO offers a comprehensive range of insurance services, benefits and other services. In its home market of Germany, ERGO is one of the leading insurance providers across all sectors. Around 46,000 people work as permanent employees or as full-time freelance agents for the group. In 2013 ERGO’s income from contributions totalled EUR 18 billion, while insurance payments for its customers totalled EUR 17 billion. ERGO belongs to Munich Re, one of the world’s leading reinsurers and risk coverers.
With total assets of EUR 197 billion, NORD/LB Norddeutsche Landesbank is a leading German business bank. Its core business segments include corporate customers business, structured financing in the energy and infrastructure sector, ship and aircraft financing, commercial real estate financing (via Deutsche Hypothekenbank), capital market business and private and commercial customers. The bank has headquarters in Hanover, Braunschweig and Magdeburg and branches in Düsseldorf, Munich, Hamburg and Schwerin. With Braunschweigische Landessparkasse it has an extensive presence with more than 100 branches. NORD/LB is represented outside of Germany by a subsidiary in Luxembourg and branches in London, New York, Singapore and Shanghai.
NORD/LB: Dr. Thomas Klodt, +49 (0) 511 361-2758, firstname.lastname@example.org
ERGO: Robert Hirmer, +49 (0) 211 477-6874, email@example.com
NORD/LB Media and Communication