Deutsche Konsum REIT finalizes restructuring plan

Deutsche Konsum REIT has finalized a restructuring plan and set the terms for a capital increase. 

Altmarkforum

The company will sell approximately €300 mln in real estate assets to pay down its debt. Additionally, it will also issue new shares to raise capital. This includes a "debt-to-equity swap," where up to €120 mln in financial liabilities will be converted into new shares.
All relevant creditors have agreed to extend their loan maturities until September 2027, the end of the designated restructuring period.
The capital increase will be a mixed cash and in-kind offering at a subscription price of €2.00 per share. Shareholders will have the right to subscribe to 1.5 new shares for every one share they currently own. This will increase the company's share capital from around €50.4 mln to up to €125.9 mln.
Approximately €120 mln of the capital increase will come from converting existing bonds into equity. The majority, about €108 mln, will be provided by companies related to Versorgungsanstalt des Bundes und der Länder AöR (VBL).
An Extraordinary General Meeting to approve the capital increase is scheduled for October 2025. The plan still requires approval from BaFin, the German financial regulator, to grant an exemption from a mandatory takeover offer should VBL gain control of the company through this restructuring.
Following property sales, the portfolio has decreased to 163 properties in Germany's regional areas and mid-sized cities at the end of the first half of 2025.