Press Releases


LMA launches new German law commercial real estate finance document

24 November 2015

The LMA is pleased to announce the launch of its new 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. Whilst the current version of the document has been produced in English, a further German language version is also in the process of being prepared.

The German REF documentation project was begun in response to demand from participants in the German real estate finance market for a German law governed form of real estate investment facility agreement for the German real estate finance market (including the German Pfandbrief market), in much the same way as the LMA provided facility agreements for the real estate finance markets in England and Wales and Scotland. 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 and standardisation across the market through the use of a common framework and language, enabling market participants to concentrate on the key commercial drivers which form the basis of their transactions.

The German REF Document, which uses the same basic structure and "boilerplate" as the LMA recommended form of facility agreement for the German law investment grade market or, where relevant, the English law real estate finance documentation, 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 law real estate finance facility agreement to our existing suite of REF documents will lead to more efficient and productive negotiation of documentation."

"The new German REF Document demonstrates our commitment to expanding our documentation library in the real estate sector and is representative of the LMA's increased activity in this area of the market. Following a significant rise in both overseas and non-bank investment in the German commercial real estate market, we hope that the document will contribute to attracting new entrants to the market."

Simultaneously with the launch of its new document, the LMA is hosting its second 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.

For further information, please see the attached appendices.


Dr. Olaf Meisen, Partner - Allen & Overy LLP
Clare Dawson, Chief Executive - LMA