Berlin Hyp is issuing promisory notes secured on part of the €656m loan the bank made to Deutsche Annington in January.
The German bank is issuing its second ‘IMMO-Schuldschein’ as a way of syndicating the loan and is offering participation to German savings banks affiliated to its parent, Landesbank Berlin.
Schuldschein loans are bilateral loan agreements sold to institutional investors – an alternative to bonds that is unique to Germany.
Last month, Berlin Hyp completed the placement of its first schuldschein, secured by a mortgage on a Berlin residential portfolio owned by listed housing company GSW.
Some 26 savings banks took up the offer, which was increased to €90m, taking an average €5m-worth each. Berlin Hyp kept 50%.
Deutsche Annington’s loan will help pay down the outstanding €3.8bn GRAND securitisation, which has now been reduced to around €3bn.