German property company Tegernsee Immobilien- und Beteiligungs-Aktiengesellschaft (Tag) said it is selling four retail buildings in the German Rhine/Main region with a volume of EUR 13.4 mln as part of the process of optimising its portfolio. The package, with a total floor space of 6,600 m2, is being sold to international investors.
German property company Tegernsee Immobilien- und Beteiligungs-Aktiengesellschaft (Tag) said it is selling four retail buildings in the German Rhine/Main region with a volume of EUR 13.4 mln as part of the process of optimising its portfolio. The package, with a total floor space of 6,600 m2, is being sold to international investors.
Andreas Ibel, chairman of Tag's management board said: 'With the sale of these retail buildings, we are continuing our efforts to systematically focus our REIT portfolio on office real estate. We will be ploughing the proceeds from the sale back into the company by purchasing further attractive office real estate.'
The establishment of Tag Gewerbeimmobilien-AG and its registration as a pre-real estate investment trust (pre-REIT) this summer laid the foundations for the planned stock market flotation.
Tag said further preparations for the placement of the REIT are proceeding according to schedule. 'The flotation will be commenced as soon as conditions in the stock market permit a fair valuation. The Company assumes that this could be the case as early as in the first quarter of 2008,' the company said in a statement.
Two German real estate companies, Alstria Office and Fair Value, have already launched tax-friendly REITs in Germany.
