Lone Star picks UBS, JP Morgan for TLG Immobilien IPO

FRANKFURT, July 16 Wed Jul 16, 2014 3:57am EDT

FRANKFURT, July 16 (Reuters) - Private equity investor Lone Star has chosen UBS and JP Morgan to handle a stock market listing of its German commercial real estate group TLG Immobilien, two people familiar with the situation said.

The buyout group is likely to launch the IPO later this year and could sell a stake worth 500 million euros, the people added.

TLG Immobilien is worth about 1.5 billion euros ($2 billion) including debt.

TLG Immobilien and U.S.-based Lone Star as well as the banks declined to comment.

Lone Star bought TLG Immobilien, which manages about 800 in commercial properties, for 1.1 billion euros in 2012 from a government agency that organises the privatisation of east German companies in the wake of the reunification of Germany in 1990.

($1 = 0.7378 Euros) (Reporting by Arno Schuetze, editing by William Hardy)