* LEG eyes possible IPO in Q1 if markets stable - sources
* IPO may value company at close to 5 bln euros - sources
* LEG has reorganised, secured refinancing - spokesman
FRANKFURT, Dec 5 German real estate group LEG is
planning a stock market listing early next year which could
value it at close to 5 billion euros ($6.5 billion), two people
familiar with the situation told Reuters on Wednesday.
The company has picked Goldman Sachs and Deutsche
Bank as advisers for the initial public offering
(IPO), which will proceed if markets remain stable, they added.
A so-called intention to float, usually issued four weeks
ahead of a listing, may be put out in January or February, the
LEG owns roughly 90,000 residential apartments, which were
valued at about 4.7 billion euros at the end of 2011. The number
of apartments in its portfolio makes it larger than listed peer
German competitor Deutsche Annington, which is owned by
private equity investor Terra Firma, is also looking
to float on the stock market, and the first mover may gain an
edge ov e r its rival in tapping investor demand, banking sources
have said in the past.
LEG's owner, Goldman Sachs, declined to comment, as
did Deutsche Bank.
Goldman Sachs's investment fund Whitehall bought LEG in 2008
from the German state of North Rhine-Westphalia.
A LEG spokesman said a reorganisation of the company has
been finalised and its refinancing secured.
"When and if an IPO will take place is up to the owners," he
In LEG's flotation, Whitehall will likely only sell a stake
of up to a third on the stock exchange with follow-on placements
at a later point in time, the sources said.
A flotation in the first quarter is generally seen as
challenging, as companies are usually under pressure to present
full-year figures in their IPO prospectus.
"However, companies such as real estate groups, which tend
to have stable quarterly earnings, can easily rely on nine-month
figures," a capital markets banker said, adding this could
facilitate a first-quarter listing.