Terra Firma Capital Partners Ltd. may sell as much as 40 percent of Deutsche Annington Immobilien AG in an initial public offering slated for 2013 as part of a plan to end its investment in the property company.
“It’s probably going to take us two years to fully exit,” Guy Hands, Terra Firma’s founder, said in an interview with Bloomberg Television’s Cristina Alesci. “You would probably do an initial public offering of say 30, 40 percent, so you’ve still got the vast majority of the shares to be sold.”
Deutsche Annington, Germany’s largest residential landlord, owns 186,000 apartments that were valued at 9.9 billion euros in its 2011 annual report. The company had about 6.7 billion euros of debt at the time. In January, Goldman Sachs Group Inc. raised about 1.3 billion euros in an IPO of LEG Immobilien AG, making it the largest listed residential landlord by market value.
“Let’s not focus on what we get on day one,” Hands said in the interview. “If one does that, one could be a little bit more relaxed on timing, but it might well mean that you end up selling less than you would have hoped and you would sell it at a lower price than you would have hoped.”
JPMorgan Chase & Co. and Morgan Stanley will manage Deutsche Annington’s share sale.