Deutsche Annington refinancing paves way for IPO

FRANKFURT Thu Dec 20, 2012 11:32am EST

FRANKFURT Dec 20 (Reuters) - Deutsche Annington, Germany's biggest real estate group, has completed a refinancing, paving the way for it to list next year.

"(The refinancing) gives it (Deutsche Annington) a balance sheet which will help it to move ahead strongly on the next stage of its development," said Guy Hands, chairman of private equity firm Terra Firma which owns Deutsche Annington.

Deutsche Annington chief financial officer Stefan Kirsten had said in October the firm could list its shares in late 2013, potentially making it the first real estate company in Germany's blue-chip index.

As part of the refinancing - rubber-stamped by a London court on Thursday after creditors agreed to it - Deutsche Annington's outstanding debt will be reduced to 3.8 billion euros ($5 billion) from 4.3 billion, which is to be redeemed over the next five years.

Noteholders will benefit from an increase in margins by 1.17 to 1.65 percent, while the company will benefit from lower overall financing costs, Kirsten said. ($1 = 0.7542 euro) (Reporting by Arno Schuetze; Editing by Dan Lalor)

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