Property Group floats IPO plan

Denmark's Property Group is considering a flotation on the Copenhagen Stock Exchange in the next few years as part of a major change to its shareholder structure. The company announced on Thursday that Gudmundur Thordarson and real estate investor Birgir Thor Bieltvedt are acquiring a 45% interest in the company from majority shareholder Straumur. The Icelandic merchant bank will retain a 5% stake. Gudmundur Thordarson is leaving his job as managing director of corporate finance at Straumur to become executive chairman of the company which focuses on real estate in Denmark, Sweden, Norway, Finland, Germany and Eastern Europe. It plans to become a major player in the Nordic region within five years.

Property Group emphasised that the relation with Straumur would continue unchanged as Thordarson's replacement at the bank will have a seat on the real estate company's board. Referring to the IPO, Property Group said: 'Our aim is definitely to gain a listing within two to three years. We are already making a start on the process now and for that reason alone, it is decisive that we now have owners who can make positive contributions to the process. Our strategy of building up an attractive real estate portfolio at Property Group will continue as before. In addition, the company said the change of its ownership structure created the opportunity to sell a 20% stake to a new investor once a new strategic partner was identified.

Last week, Property Group and Straumur sold 26 senior housing properties in Jutland and the island of Funen to the Rolf Barfoed Group for DKK 650 mln (EUR 87 mln).