Cerberus Capital Management LP’s German retail property spinoff will have an initial market value of about 1 billion euros ($1.4 billion), making it the country’s second-largest listed commercial real estate company, two people with knowledge of the plan said.
The initial public offering, in which Cerberus will sell a stake in its 2 billion-euro German retail property portfolio, will probably take place in the first half of 2014, one of the people said. Both of them asked not to be named because the information is private.
Goldman Sachs Group Inc., Bank of America Corp. (BAC) and JPMorgan Chase & Co. (JPM) are advising Cerberus on the IPO, two people with knowledge of the plan said in April. Cerberus is among foreign investors in German real estate seeking to profit from rising demand for property there. The firm took GSW Immobilien AG (GIB), Berlin’s largest residential landlord, public two years ago.
Cerberus’s spinoff will also include a share sale by Acrest Property Group GmbH, the Berlin-based company that manages its German retail buildings, the people said. Acrest also oversees 1.7 billion euros of buildings owned by clients including Apollo Global Management LLC (APO), according to Acrest’s website.
Representatives of Acrest and New York-based Cerberus declined to comment on the IPO plans. Cerberus’s German retail properties include big-box outlets and department stores rented to businesses such as Woolworth and Metro AG.
Goldman Sachs and Guy Hands’s Terra Firma Capital Partners Ltd. did IPOs this year that created Germany’s largest publicly traded residential landlords. Deutsche Euroshop AG is the country’s largest publicly traded commercial property company, with a market value of about 1.7 billion euros.
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