Austrian real estate company CA Immo said it is planning to launch one of the first German real estate investment trusts (REITs), in a move aimed at 'capitalising on the opportunities' presented by the German market following the establishment of the REIT regime this year. The new tax-efficient vehicle will have a spending power of up to EUR 2 bn, of which EUR 1 bn will be invested before the end of the year, CA Immo said in a statement. The company added it will place between 26% and 49% of the REIT with private and institutional investors. The initial public offering will take place between the final quarter of 2007 and the end of June 2008. CA Immo indicated that the flotation is expected to raise equity of about EUR 500 mln.
Austrian real estate company CA Immo said it is planning to launch one of the first German real estate investment trusts (REITs), in a move aimed at 'capitalising on the opportunities' presented by the German market following the establishment of the REIT regime this year. The new tax-efficient vehicle will have a spending power of up to EUR 2 bn, of which EUR 1 bn will be invested before the end of the year, CA Immo said in a statement. The company added it will place between 26% and 49% of the REIT with private and institutional investors. The initial public offering will take place between the final quarter of 2007 and the end of June 2008. CA Immo indicated that the flotation is expected to raise equity of about EUR 500 mln.
CA Immo will provide the initial portfolio for the new German unit. This will include the Hesse portfolio, which is worth around EUR 800 mln, as well as properties across Berlin, Düsseldorf and Kassel. The company added it is currently in talks for a number of other properties.
CA Immo is an Austrian property company which invests in commercial real estate. In 2006, the group's turnover increased by 44% to EUR 93 mln.