Deutsche Annington, Germany's largest residential landlord, has revived plans to hold an initial public offering a week after the first attempt failed.
Deutsche Annington, Germany's largest residential landlord, has revived plans to hold an initial public offering a week after the first attempt failed.
The company, which is 85%-owned by private equity firm Terra Firma, said on Tuesday that is going ahead with a stock market listing that is expected to raise €575-592 mln versus €1.1-1.4 bn previously.
‘While the implementation of our operating strategy continues well on track, a successful IPO enables us to accelerate the diversification of our funding,’ CEO Rolf Buch said in the statement. JPMorgan Chase & Co and Morgan Stanley were leading the latest IPO bid.
Last week Deutsche Annington was forced to postpone its offering planned for 3 July as a result of 'persistent adverse market conditions'.
Market rumours suggested the listing was cancelled because the company failed to attract enough demand for its new shares, which were priced at a range of €18-21 a share.
London-based Terra Firma intended to list Deutsche Annington shares on the Frankfurt stock exchange to raise €1.1-1.4 bn. The proceeds from the operation were to be used to repay company's commercial mortgage-backed security, German Residential Asset Note Distributor (GRAND) by October.
Issued in 2006 for €5.8 bn, GRAND was the largest CMBS in Europe at the time. About €3.8 bn remains outstanding.
Deutsche Annington was established in 2001 and is the owner of 180,000 residential units across Germany.
