Germany's HSH Nordbank plans to convert property company Hamborner into a real estate investment trust (REIT) when the investment vehicle is introduced in Germany later this year, Handelsblatt newspaper reported.
Germany's HSH Nordbank plans to convert property company Hamborner into a real estate investment trust (REIT) when the investment vehicle is introduced in Germany later this year, Handelsblatt newspaper reported.
'We are currently assessing what a REIT will cost us,' said Marc Weinstock, management board member of HSH N Real Estate in which HSH Nordbank has bundled its property activities. 'We want to convert Hamborner into a REIT as long as that is attractive for investors. For us the way the exit tax is structured will be vital. We are following the parliamentary passage (of the REIT, ed.) with great interest,' he added.
HSH Nordbank acquired a majority stake in Hamborner last year. The company currently manages some EUR 170 mln in commercial property, a figure Weinstock wants to increase to between EUR 500 mln and EUR 600 mln in the medium term by investing in industrial sites in smaller German cities.
If the planned conversion goes ahead, HSH Nordbank will be the first regional bank to launch a REIT in Germany.
