Germany Expects to Select TLG Real Estate Bidder by End of 2012
The German government said it’s confident of a successful sale of its TLG Immobilien GmbH property company because of the number and range of interested bidders.
The Finance Ministry, which is organizing the sale with Barclays Capital Plc (IEAC), said it expects to pick a buyer for TLG’s two units by the end of the year. The ministry’s deadline for expressions of interest was April 16. The company was valued at 1.76 billion euros ($2.3 billion) in 2010.
“The large number of filed statements of interest encompasses all investor classes,” said the ministry in the April 23 report prepared for the Budget Committee and seen by Bloomberg News. “What’s positive is also the reputation” of the potential bidders.
The sale of one of the federal government’s last major property assets is drawing interest from both foreign and private investors after commercial and residential rents grew amid economic growth of 3.7 percent in 2010 and 3 percent last year. The ministry canceled a planned sale of TLG in 2008 as bids dried up in the international banking crisis.
TLG’s properties are based mainly in formerly communist East Germany, including Berlin. The company evolved from property inherited at the collapse of the former communist regime and from new investments. It has reported a profit every year since 2002.
To contact the editor responsible for this story: James Hertling at firstname.lastname@example.org