Aareal Bank has raised gross proceeds of EUR 269.6 mln following a near fully-subscribed capital increase at an issue price of EUR 15.75. Following the capital increase, Aareal Holding holds a 28.9% stake in Aareal Bank's share capital, the Wiesbaden-bank said in a press statement.

Aareal Bank now has a market capitalisation of EUR 179 mln. The new shares were already admitted to trading in the Regulated Market of the Frankfurt Stock Exchange on 19 April 2011 and are due to be delivered to shareholders on Tuesday.

Deutsche Bank and HSBC acted as syndicate banks in the transaction.

'The successful completion of the capital increase marks a key step in the continued expansion of our market position,´ said Dr Wolf Schumacher, Chairman of the Management Board, in a statement. 'We will now increasingly exploit opportunities for high-margin new business which are available in the current market and competitive environment, and thus further boost our profitability.'

Aareal Bank AG is one of the leading international specialist property banks. and is active in more than 20 countries in Europe, North America and in the Asia-Pacific region.