June 28, 2011 / 10:01 AM / in 7 years

Germany's Prime Office lowers sights on IPO

* Prime Office resumes plans for IPO

* Sets issue price at 6.20 euros, lower than previous plan

* Total issue volume will now be 213.9 million euros

* Subscription period to last one day on June 29

* Shares to list on July 1

FRANKFURT, June 28 (Reuters) - German property firm Prime Office has put a stock market flotation back on the agenda with an issue price well below initial plans.

The company, which put its initial public offering (IPO) on hold last week due to volatile market conditions, set the issue price at 6.20 euros on Tuesday, compared with a previous range of 7.00 euros to 9.50 euros.

The total volume of the offer will be 213.9 million euros ($302.9 million), compared with 337 million euros under the original plan.

The subscription period will last for only one day on June 29, and the new shares will list on the Prime Standard segment of the Frankfurt Stock Exchange on July 1.

Last month, Prime Office said that any proceeds from an IPO would go toward strengthening the firm’s capital structure and expanding its portfolio.

The group also aims to meet the conditions required to become a real estate investment trust (REIT) and benefit from the related tax privileges, such as exemption from trade and corporate income tax.

UniCredit Bank and Berenberg Bank will act as joint book runners. Kempen & Co and Macquarie have been mandated as co-lead managers.

Prime Office 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 celebrated its bourse debut in April. (Reporting by Maria Sheahan. Editing by Jane Merriman) ($1=.7062 Euro)

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