German property investment company IVG Immobilien said it plans to launch a real estate investment trust (REIT) through an initial public offering early next year. The future REIT would be made up of German office properties worth around EUR 3.5 bn, IVG said in a statement. It will hold a majority interest in the vehicle and float at least 25%.
German property investment company IVG Immobilien said it plans to launch a real estate investment trust (REIT) through an initial public offering early next year. The future REIT would be made up of German office properties worth around EUR 3.5 bn, IVG said in a statement. It will hold a majority interest in the vehicle and float at least 25%.
'Transfer of the properties to the REIT is predominantly scheduled for the beginning of 2008,'IVG said, adding: 'From a value maximisation point of view, the exact date of the IPO depends on a positive capital market environment.'
German legislation governing REITs came into force in 2007. Currently, only commercial property REITs are permitted. Residential real estate is excluded.
So far two REITs have listed on the Frankfurt stock exchange: Alstria Office and Fair Value.
IVG has more than EUR 19 bn in property assets under management.
