For companies with the clout, the current situation in Europe is a time of opportunity. Vonovia, the Bochum, Germany-based residential giant has, for instance, announced a €1bn capital increase by means of a placing with institutions.
Part of the proceeds of this are intended to be used “for future growth opportunities that arise in the current environment”, the company stated.
The capital raise follows its successful €1.5bn bond issue made in July. The proceeds of that are being used for the early repayment of loans in Sweden and part of the proceeds of the latest capital increase will be used to pay off debt as it matures in Q4 2020.
Covid-19 is apparently having little negative affect on the business and it said in the statement that it has demonstrated a highly robust business model and has a low risk profile. “The operating performance remains strong and impacts from COVID-19 on the business are immaterial,” it added.
Vonovia currently owns around 415,000 residential units in Germany, Sweden and Austria and manages around 73,000 apartments. Its portfolio is worth approximately € 55.7 billion.
Position of strength
CFO Helene von Roeder said: “We feel this is an excellent opportunity. After our attractive €1.5bn corporate bond issuance a few weeks ago, we once again act from a position of strength. We are clearly showing that we can deliver growth even in these times and with further opportunities down the road we are highly confident that we will continue to create value for our stakeholders.”
The company said that the new shares from the latest capital increase will be offered exclusively to institutional investors by way of a private placement in an accelerated bookbuilding process.