Hana Financial Investment, Acquisition Financing Investment in German Real Estate Company 'Akcentro'

[Asia Economy Reporter Lim Jeong-su] Hana Financial Investment has acquired 100 million euros (approximately 141.4 billion KRW) worth of acquisition financing (loans) executed for the global real estate investment company Brookline Real Estate. The loan was borrowed by Brookline Real Estate in 2017 to acquire a controlling stake in the German real estate service company Accentro.

According to the investment banking (IB) industry on the 28th, Hana Financial Investment recently invested 141.4 billion KRW in a private equity fund (PEF) established by Shinhan Alternative Investment Management. Shinhan Alternative Investment Management used the PEF fund to acquire loan receivables of the same scale directed toward Brookline Real Estate.

Hana Financial Investment raised investment funds by issuing short-term bonds backed by fund beneficiary certificates. During the short-term bond issuance process, it provided credit facilities such as a private bond purchase commitment with a limit of 125.6 billion KRW and a capital replenishment agreement. This means that if problems arise at the investment destination making it difficult to repay the securitized bonds, Hana Financial Investment will repay the debt on behalf of the borrower.

Brookline Real Estate is a global real estate investment company providing commercial and residential real estate investment and brokerage services. In 2017, it acquired 79.95% of the shares of Accentro, a German residential real estate service company. It is known to have increased its stake to 83.1% through additional acquisitions. The share acquisition price is estimated to be 180 million euros (approximately 211.5 billion KRW).

Accentro is a German company listed on the Frankfurt Stock Exchange, specializing in the privatization of large residential portfolios. Founded in Stuttgart in 1999, it has about 22 years of experience in the residential real estate privatization business.