Events after the balance sheet date
On 6 January 2010, Panta Neunundneunzigste Grundstücksgesellschaft m.b.H. & Co. KG, a subsidiary of Deutsche EuroShop, acquired the A 10 shopping center in Wildau near Berlin for around €205 million (including ancillary acquisition costs). The transfer of benefits and encumbrances took place on 1 February 2010. The center, which opened in 1996, offers 120 rental areas and will be restructured and modernised by the spring of 2011, increasing the number of rental areas by 60 to 180, with rental space of 120,000 m². We expect the overall additional investment required to total around €60 million.
Of the total investment of €265 million, €150 million will be financed by means of a long-term bank loan and €115 million from equity. €125 million of this loan has already been utilised for the purchase, at an interest rate of 4.65% p.a. with a fixed-rate period of 10 years. The remaining €25 million will be used to finance part of the investments in modernisation and expansion.
To refinance the equity portion of the investment (€115 million), Deutsche EuroShop AG carried out a rights issue with a one-for-six subscription ratio in February 2010. The new shares were acquired in their entirety by existing shareholders through the exercising of their subscription right and an oversubscription right granted by the Company. A total of 6.3 million new shares were issued at a subscription price of €19.50 per share, and they qualify for a dividend for 2009. This action raised around €123 million for the Company.
No further significant events occurred between the balance sheet date and the date of preparation of the financial statements.