German property group Corestate plans 150-200 mln euro listing
12/10/2015 12:06
FRANKFURT, Oct 12 (Reuters) - German real estate investment
manager Corestate is planning to list on the Frankfurt stock
exchange raise money to expand its business and repay existing
debt.
The company said it aims to issue new shares worth 100
million euros ($114 million). Two people familiar with the
matter said the initial public offering, including shares from
existing shareholders, would be worth 150-200 million euros in
total.
Corestate is hoping to take advantage of reasonably robust
equity markets, which allowed several IPOs go ahead in Germany
in the past few weeks, although some market wobbles have forced
companies like plastics group Covestro 1COV.DE and bearings
maker Schaeffler SHA_p.DE to scale back their offerings.
ID:nL8N1290UC ID:nL8N1260Z7
In the real estate sector, Germany group ADO Properties
ADJ.DE listed in July, while IPO hopefuls like BGP and Aurelis
have so far held back from launching a flotation process.
Corestate makes money from fees for organising real estate
investments for rich individuals or family offices, as well as
from temporary co-investments, which usually do not exceed 5-10
percent of the equity.
It scouts the market for potential investments and then
structures and does the deals, manages the investments and helps
eventually with selling them on.
Corestate is active in residential, student and retail real
estate assets mainly in Germany, Austria and Switzerland but
also has a joint venture in Spain.
In 2014, it reported funds from operations, a measure of
cash generated by real estate investment trusts, of 14.6 million
euros on revenues of 36.2 million. In the first six months of
2015, this stood at 7.6 million.
Founders Ralph Winter and Thomas Landschreiber currently
hold 70.9 percent of Corestate, with Swiss-based Intershop
Holding AG ISN.S holding the rest.
Corestate said it planned to pay out 60 to 70 percent of its
funds from operations to shareholders.
Berenberg is organising the IPO with the help of Bankhaus
Lampe.
($1 = 0.8777 euros)
(Reporting by Arno Schuetze and Kathrin Jones. Editing by Jane
Merriman)
((arno.schuetze@thomsonreuters.com; +49.69.7565.1197; Reuters
Messaging: arno.schuetze.reuters.com@reuters.net))
Keywords: CORESTATE IPO/