Gagfah, the real estate group from Germany, said that it could increase its capital funding in order to finance renovations for the 145,000 flats currently in its portfolio.

This was announced by Thomas Zinnoecker, Gagfah CEO, who said, "I would think about a capital increase if we had to finance more than we can afford." He added that no decision has been reached on the plan yet.

According to CFO Gerald Klinck, Gagfah can also make acquisitions if it could refinance some or all of its maturing loans.

The majority owner of Gagfah is Fortress, and the real estate company said that it was in the process of refinancing a Eur2 billion or US$2.6 billion debt that would mature by August after its successful refinancing of another Eur1 billion credit facility last January.

Klinck added, "We are not interested in shrinking but rather in growing." He further said that the recent refinancing deals helped raise funds for possible acquisitions to be undertaken.