Swiss property developer HIAG Immobilien plans IPO

ZURICH, April 15 Tue Apr 15, 2014 1:31am EDT

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ZURICH, April 15 (Reuters) - Swiss property redevelopment company HIAG Immobilien said on Tuesday it plans to list shares on the Zurich stock market in the second quarter, raising at least 200 million Swiss francs ($224 million) mostly to fund site projects and pay off debt.

The HIAG Immobilien sale would be Switzerland's fourth initial public offering this year. Lender Thurgauer Kantonalbank has already listed, while online travel agency Bravofly Rumbo Group IPO-BRGF.S is due to make its market debut on Tuesday and a flotation of engineering components firm SFS is scheduled for the second quarter.

HIAG Immobilien will sell new and existing treasury shares to generate about 140 million Swiss francs for the company itself in its IPO. Members of the founding Grisard family will also sell a portion of their holding, in a sale equal to between 30 and 40 percent of the company's shares in total, worth at least 200 million francs.

Founded in 2008, Basel-based HIAG Immobilien employs 22 people, and redevelops former industrial and commercial sites to create new residential and office properties. At the end of 2013, its portfolio was valued at 1.065 billion Swiss francs ($1.21 billion), and generated an annualised property income of 46.6 million francs.

"In light of the company's successful growth over the last seven years, HIAG Immobilien is ready to go public," said Chairman Felix Grisard.

The company plans to use funds to finance medium-term site redevelopment projects, as well as to repay a bridge loan of 30 million Swiss francs.

Credit Suisse is acting as sole bookrunner in connection with the IPO, and Bank Vontobel as co-lead manager.

On Monday, Bravofly Rumbo priced its initial public share offer at 48 Swiss francs a share on Monday, giving the company a market value of 698 million Swiss francs.

($1 = 0.8916 Swiss Francs) (Reporting by Caroline Copley; Editing by Kenneth Maxwell)

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