Deutsche Wohnen said on Wednesday that it had completed a €545m capital increase, and was planning to use some of the proceeds to finance further acquisitions.

Germany’s second biggest listed landlord said that it had placed around 17.2m new shares – boosting its existing share capital by around 5 per cent – at a price of €31.75.

That represented a 2.1 per cent discount to Tuesday’s closing price. It also issued convertible bonds with a principal amount of €800m.

Deutsche Wohnen said that the bulk of new funds would be used to buy back its outstanding convertible bonds maturing in 2020.

“The remaining proceeds…will primarily be used to finance the future acquisition pipeline, the Pegasus nursing home portfolio acquisition announced in the third quarter of 2016 and other smaller recent acquisitions. The acquisition pipeline and the chances of executing further acquisitions are good,” the group said, adding that it was in “advanced but not yet concluded negotiations” to buy a medium sized residential portfolio.

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