September 24, 2019 / 2:15 PM / a month ago

Commercial property group Garbe plans Frankfurt Logistrial listing

FRANKFURT (Reuters) - German logistics property group Garbe Industrial Real Estate is planning to float its Logistrial property unit on the Frankfurt stock exchange, Logistrial said on Tuesday, hoping to benefit from a boom in Germany’s real estate market.

The announcement came as German software maker TeamViewer finished bookbuilding for its blockbuster initial public offering, Europe’s biggest of the year, with trading slated to start on Wednesday, and shares of buyout group EQT spiked on their first day of trading.

The deals could encourage other European IPO hopefuls to push forward with listing plans in what has been a challenging year for equity raising in the region.

Garbe, which develops logistics facilities, warehouses and business parks in Germany, France and the Netherlands, is offering new shares worth 550 million euros to 605 million euros ($604-665 mln) in Logistrial.

Logistrial will use the proceeds of the deal to buy properties with a gross asset value of 768 million euros, mostly from Garbe, Logistrial said, adding that 95% of its shares would be widely held after the IPO.

The IPO could value Logistrial at up to 887 million euros, including its up to 250 million euros in debt, it said.

The German property market has boomed in recent years, prompting several companies to seek a flotation to benefit from rising house and commercial real estate prices.

Reuters reported in May that Garbe was targeting a stock market deal. Separately, property firms such as Isaria Wohnbau and Domicil Real Estate are also preparing flotations.

Logistrial is targeting a dividend yield of 5% and a medium-term gross asset value of more than 2 billion euros. It aims to achieve the status of a Real Estate Investment Trust in 2020.

“The company intends to become a leading consolidator in the European logistics real estate market,” Logistrial said, adding it hopes to benefits from continued growth of online retailers.

Deutsche Bank (DBKGn.DE) and JP Morgan (JPM.N) are organizing the deal with the help of Kempen.

Reporting by Arno Schuetze; Editing by Thomas Seythal and Kirsten Donovan

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