* Prime Office aims to list in Frankfurt and Munich
* Plans capital increase as part of IPO
* Aims to transform into REIT after IPO
FRANKFURT, May 23 German property firm Prime
Office aims to launch its initial public offering (IPO) in the
regulated Prime Standard index of Frankfurt's stock exchange and
on the Munich exchange this European summer, the group said.
The proceeds from the offering will go towards strengthening
the firm's capital structure and expanding its portfolio, Prime
Office said in a statement on Monday.
"As part of the IPO, Prime Office also plans to increase
capital by issuing new shares. The size of the capital increase
will be determined immediately before the IPO," it added.
The company's portfolio consists of 14 office properties
located in major German cities with a total market value of
around 970 million euros ($1.36 billion), the group said, citing
property surveyor CB Richard Ellis.
It declined to give details of the exact date it plans to go
public as well as the volume of proceeds it is hoping to
generate, but said that after its bourse debut it expects to
transform into a real estate investment trust, or REIT, to
benefit from tax privileges.
In April, daily Financial Times Deutschland reported that
the Munich-based group intends to sell shares worth about 400
million euros, of which 250 million would come from a capital
UniCredit Bank (CRDI.MI) and Berenberg Bank will act as
joint global coordinators and joint book runners. Kempen & Co and
Macquarie (MQG.AX) have been mandated as co-lead managers.
Prime Office initially started preparing in 2007 to list on
the stock exchange as a REIT, but its plans were then scrapped
due to the financial crisis.
It would be the second real estate company to float in
Frankfurt this year after Berlin-based GSW GIBG.DE celebrated
its bourse debut in April. [ID:nLDE73E0HR]
(Reporting by Josie Cox; Editing by Jon Loades-Carter)