LMA launches German language version of its German law commercial real estate finance document
01 June 2016The LMA is pleased to announce the launch of a German language version of its recommended form of German law euro currency term facility agreement, intended for use in real estate finance multi-property investment transactions which are to be documented under German law (the "German language REF Document"). The English language version of the same document was published in November 2015.
The German language REF Document project was begun in response to demand from participants in the German real estate finance market, who felt that a German language version of the German law real estate investment property facility agreement would be beneficial for the domestic real estate market in Germany. It also signals the LMA's continued commitment to expanding its suite of documentation in the real estate finance sector, with a view to achieving greater efficiencies across the market through the use of a common, recognisable framework, enabling market participants to concentrate on the key commercial drivers which form the basis of their transactions.
The German language REF Document, which uses the same basic structure and "boilerplate" concepts as the English language equivalent, was put together and agreed by an experienced working party, consisting of representatives from major German and international banks (including Pfandbrief banks) and a number of Germany based law firms. The document also sets out drafting options to assist with suitability of the facility for registration in a Pfandbrief bank’s cover register (Deckungsregister).
Commenting on the document, Clare Dawson, LMA Chief Executive, said:
"Real estate finance forms a significant part of the syndicated loan market and is a key contributor to economic growth. The LMA remains committed both to fostering REF liquidity and assisting its members who are active in the market. We hope that the addition of a German language, German law, real estate finance facility agreement to our existing suite of REF documents will lead to more efficient and productive negotiation of documentation in the domestic German market."
"Given the significance of the commercial real estate market in Germany, and the number of transactions being completed between German banks and borrowers, we hope that the document will further contribute to the development of the market, ease the transition between domestic led and cross border deals, and give greater recognition of the LMA brand across the sector as a whole."
Simultaneously with the launch of its new document, the LMA is hosting its third annual German real estate finance conference in Munich, where panels of senior market practitioners will identify key current trends and challenges in the German real estate finance sector.
The LMA will also be publishing a German language User Guide to the German language REF Document in due course.
For further information, please see the attached appendices.