May 22, 2019 / 11:15 AM / a month ago

Commercial property group Garbe plans Frankfurt listing: sources

FRANKFURT (Reuters) - German logistics property group Garbe Industrial Real Estate is preparing for a Frankfurt stock market flotation in the autumn, hoping to benefit from a boom in Germany’s real estate market, people close to the matter said.

The company, which develops logistics facilities, warehouses and business parks in Germany and the Netherlands, is working with Deutsche Bank and JP Morgan on the listing, they added.

The Hamburg-based firm is expected to sell shares worth 300-400 million euros in a deal that may value it at around 700 million euros ($782 million), they said.

Garbe and the banks declined to comment.

The German property market has boomed in the past few years, prompting several companies to seek a flotation to benefit from rising prices for houses and commercial real estate.

Residential property group Domicil said in April that it is planning an IPO and property developer Gateway launched a share sale in March. Similar plans from commercial real estate group Summit have for now been put on hold, people familiar with the matter have said.

According to Jones Lang LaSalle, commercial property worth 60.3 billion euros changed hands in Germany in 2018, 6% more than in 2017 and above the 53 billion average of the last 5 years.

Logistics rents across Europe continued their upwards trend rising 2.3% over in 2018, according to Cushman & Wakefield. Savills noted that the share of logistics in European investment activity has risen to 14% of the total and is expected to grow even more in 2019.

Additional reporting by Caroline Copley; Editing by Thomas Seythal and Jane Merriman

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