Terra Firma’s Deutsche Annington Picks 2 Banks for IPO
Deutsche Annington Immobilien AG, Germany’s biggest residential landlord, has chosen JPMorgan Chase & Co. (JPM) and Morgan Stanley (MS) to help manage its initial public offering, two people with knowledge of the decision said.
The banks will help the unit of Guy Hands’ Terra Firma Capital Partners Ltd. conduct the share sale this year, said the people, who asked not to be named because the plans are private. Representatives of JPMorgan, Morgan Stanley, Deutsche Annington and its owner Terra Firma declined to comment.
Terra Firma, which founded Deutsche Annington after buying 65,000 homes in 2001, is seeking to profit from a residential property boom in Europe’s largest economy. The FTSE EPRA/Nareit index of German property stocks gained 31 percent in the past 12 months.
Deutsche Annington, based in Bochum, has 186,000 apartments in cities including Berlin and Cologne, making it the biggest owner of German homes. The company has been without a chief executive officer since Wijnand Donkers left in September. The IPO will probably take place in the fourth quarter to give the company time to hire a new CEO, said another person with knowledge of the matter.
In December, Deutsche Annington completed the refinancing of about 3.8 billion euros ($5 billion) of debt used to fund acquisitions. It was Europe’s largest commercial mortgage-backed security restructuring.
Since the CEO’s departure, the company has been led by Chief Financial Officer A. Stefan Kirsten and Terra Firma’s chief operating officer, Robert Barr. Deutsche Annington’s homes were valued at 9.9 billion euros in its 2011 annual report, including about 6.7 billion euros in debt.