IVG Said to Plan $1 Billion IPO With Bank of America, Berenberg

  • Kempen is also said to be working on IPO of property unit
  • Listing of property business may happen as early as September

IVG Immobilien AG, the German company taken over by creditors two years ago, is planning an initial public offering of its office property unit that could raise as much as 900 million euros ($1 billion), said people familiar with the matter.

IVG has added Bank of America Corp., Joh. Berenberg Gossler & Co. KG and Kempen & Co. to its lineup of advisers, the people said, asking not to be named as the details aren’t public. An IPO of the business could begin as early as September, they said. The company’s commercial real estate unit owns about 3.2 billion euros in properties in Germany, according to its website. The plans aren’t final, and the amount to be raised may be changed, they said.

Representatives for Bank of America and Berenberg declined to comment. A representative for Kempen didn’t immediately respond to a request for comment.

IVG Chief Executive Officer Dietmar Binkowska said in April that the firm would bundle most of its office properties into a new unit, which could be sold in a public offering or trade sale. A spokesman for IVG reiterated Wednesday that the company is on track to be viable for capital markets later this year and declined to comment on further details.

Last year, IVG hired Goldman Sachs Group Inc. and Deutsche Bank AG to advise it on the sale of its core property business, people familiar said in October.

A number of private equity owners are planning IPOs for European holdings, including Nordic payments business Nets Holding A/S and U.K. financial software provider Misys, people familiar with the firms said previously. The listings would come as markets begin to stabilize following the U.K.’s vote in June to leave the European Union.

European IPOs in the first half of the year raised about a third of what they generated in the same period in 2015 as companies deferred major transactions in the lead-up to the referendum, according to data compiled by Bloomberg.

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