GS Said to Seek Up to $2 Billion From German Property IPODalia Fahmy and Aaron Kirchfeld
LEG Immobilien AG, the German residential landlord owned by Goldman Sachs Group Inc., may raise as much as 1.5 billion euros ($2 billion) in an initial public offering, according to three people with knowledge of the plan. It would be the largest IPO by a German property company.
LEG, based in Dusseldorf, will probably list about 50 percent of the company, said the people, who asked not to be identified because the information is private. LEG is valued at about 2.1 billion euros to 3 billion euros, the people said.
Goldman Sachs and LEG co-owner Perry Capital, which bought the company for about 3.5 billion euros in 2008, are seeking to profit from a boom in German residential real estate. The FTSE EPRA/Nareit index of German property stocks has gained 38 percent in the past 12 months.
LEG’s share sale will probably take place on Feb. 1 and the final amount raised will depend on investor demand, the people said. LEG is due to announce details of the IPO at a press conference on Jan. 21.
LEG owns 91,000 apartments in North Rhine Westphalia, Germany’s most populous state. Goldman Sachs’ Whitehall Street Real Estate fund holds about 95 percent of the company.
Goldman Sachs and Deutsche Bank AG will be lead managers and book runners for the IPO.
Officials at LEG, Goldman Sachs and Deutsche Bank declined to comment.