* 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 (Reuters) - 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 increase. [ID:nLDE73I091]
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) ($1=.7109 Euro)