06. January 2020 | 05:50 CET
Rent cap keeps Vonovia & Co on its toes: MOREH offers 6% fixed interest rate with commercial property
The discussions surrounding a rent cap in Berlin and other cities have repeatedly caused uncertainty among shareholders of real estate companies such as Vonovia in 2019. No improvement is in sight for 2020. Anyone who focuses on commercial real estate is not affected by this. For example, the real estate portfolio owner M Objekt Real Estate Holding GmbH & Co. KG, MOREH for short. In the summer of 2019, the company issued a corporate bond with a fixed interest rate of 6.00 percent with a semi-annual payment and extensive collateral. The security with a term of five years can be traded on numerous German stock exchanges. MOREH is a classic real estate portfolio holder with a focus on commercial real estate in Western Germany. Experts consider the MOREH bond to be attractive and have invested.
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ISIN: DE000A2YNRD5 , DE000A1ML7J1
Experts from KFM Deutsche Mittelstand AG convinced
The MOREH bond has convinced the experts at KFM Deutsche Mittelstand AG. From the experts' point of view, MOREH and its parent company have built up a long-term successful track record and created sufficient references in the real estate market, enabling them to achieve above-average fundamental value increases in their projects. In conjunction with a return of 6.00 % p.a., the experts rate the MOREH bond as "attractive" and awarded 4 out of 5 possible stars for the summer issue. The experts also invested in the MOREH bond with their fund.
Family-managed real estate portfolio holder with diversified portfolio
MOREH is a classic real estate portfolio holder with a focus on commercial real estate in West Germany. The portfolio includes seven properties with a total usable floor space of around 48,000 sqm and a market value of around EUR 77 million. The properties - including office and retail properties, a retail park and an outlet center - are broadly diversified across property classes, tenant structures and locations. The occupancy rate is high at over 96 %.
As part of the Munitor Group, MOREH benefits from decades of experience in the development, purchase and management of commercial real estate. Since its foundation in 1982, the Saarbrücken-based Munitor Group has successfully developed projects with a total value of more than EUR 500 million.
Extensive collateral and covenants
The MOREH bond has extensive collateral and covenants. Among other things, a 100 percent payout block is planned. The profit is collected in an escrow account. A credit balance in the amount of one interest payment is also held in this account. The trustee is also equipped with comprehensive control functions. In addition, all shares in the individual property companies are pledged in favour of the bondholders. A further security, albeit indirect, is that the managing director Patrick Müller is privately liable to the banks with a guarantee of around EUR 8.5 million.