The private equity owners of TLG Immobilien are reportedly eyeing a possible sale or flotation of the property landlord to capitalise on appetite for German real estate.
The private equity owners of TLG Immobilien are reportedly eyeing a possible sale or flotation of the property landlord to capitalise on appetite for German real estate.
US private equity group Lone Star, which bought the TLG portfolio for €1.1 bn 18 months ago, is planning an Initial Public Offering of the Berlin-based firm for the second part of 2014, according to a news report by Bloomberg.
Lone Star bought the TLG mixed-asset portfolio from the state in Germany's largest commercial real estate transaction in 2012. The transaction consisted of €594 mln in equity and the remainder in debt.
At the time, the portfolio comprised around 780 assets ranging from offices and shopping centres to hotels and retirement homes.
TLG was set up in 1991 to manage government-owned real estate assets in East Germany following reunification. In 2012 the agency was split into two units for commercial (TLG Immobilien) and residential real estate (TLG Wohnen) to facilitate a sale to separate buyers.