Nomura Real Estate Plans to Raise $1.8 Billion Through REIT IPO

Nomura Real Estate Holdings Inc. (3231), a property affiliate of Japan’s biggest brokerage, plans to raise about 175 billion yen ($1.8 billion) in an initial public offering that is poised to be the country’s biggest this year.

The developer plans to sell 1.75 million shares in its real estate investment trust in Tokyo on June 12, according to a document filed with the country’s finance ministry. The REIT will consist of 227.6 billion yen worth of warehouses and commercial properties mainly in the Tokyo metropolitan area, the filing showed.

The offering follows Nippon Prologis REIT Inc. (3283)’s 100.3 billion yen-IPO in February and GLP J-REIT (3281)’s $1.3 billion in a share sale in December, according to data compiled by Bloomberg. The final price will be set on June 3, according to the document.

The Tokyo Stock Exchange REIT Index has gained 37 percent this year, amid expectations that the government will accelerate efforts to end deflation and boost economic growth. The index had the biggest annual increase, of 34 percent, in 2012.

To contact the reporters on this story: Kathleen Chu in Tokyo at kchu2@bloomberg.net; Katsuyo Kuwako in Tokyo at kkuwako@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net

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