Israeli Builder Targets Second-Half IPO for German Property Unit

Shikun & Binui Ltd., an Israeli construction services company, plans to hold the initial public offering of German residential real estate business ADO Properties GmbH in the second half of the year, Chairman Moshe Lahmani said.

“Berlin’s real estate market is attractive, so we think the offering of shares will be very interesting to investors,” Lahmani said in an interview at the company’s offices at Airport City, Israel on April 1.

ADO plans to raise about 350 million euros ($379 million), people familiar with the matter said in February. The company, based in Berlin, owns and manages about 14,600 properties in the German capital, most of which are apartments, according to its website. Berlin apartment prices climbed almost 50 percent in the three years through 2014, while rents gained more than 30 percent, according to data compiled by Jones Lang LaSalle Inc.

The IPO is part of Shikun & Binui’s drive to expand globally, Lahmani said. The company,in which billionaire Shari Arison is the biggest holder, derives about 50 percent of its revenue from projects abroad, according to data compiled by Bloomberg.

A consortium including Shikun & Binui in February won an $800 million project to build toll lanes in Texas. In July it was part of another consortium that won the tender to build a 154-km, $550 million toll road in Columbia.

“The new direction is to boost up all the relevant business divisions toward global activity,” Lahmani said. Renewable energy activities and concession businesses will be key growth drivers in coming years, he said.

Arison Investments Ltd., owned by Shari Arison, holds a 47.3 percent stake in the company, Bloomberg data show. Shikun & Binui shares rose 0.5 percent to 8.54 shekels at 12:02 p.m. in Tel Aviv, bringing this year’s gain to 3.6 percent.

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