FRANKFURT, May 16 (Reuters) - German real estate group Gagfah could increase its capital to fund renovations in its 145,000 flats, its new chief executive said.
“I would think about a capital increase if we had to finance more than we can afford,” Thomas Zinnoecker said late on Wednesday in remarks embargoed for Thursday, adding no decision had been made on the matter yet.
Finance chief Gerald Klinck said Gagfah could also make acquisitions after refinancing maturing loans.
Gagfah, majority owned by private equity investor Fortress , said on Wednesday it was on track to refinance a 2 billion euro ($2.6 billion) loan that matures in August after successfully refinancing a 1 billion-euro facility in January.
“We are not interested in shrinking but rather in growing,” Klinck said, saying the refinancing deals freed the company up to consider acquisitions.