Blackstone Said to Weigh Buying $3.6 Billion German Landlordby
Blackstone Group LP is considering a bid for OfficeFirst, the German landlord that holds 3.2 billion euros ($3.6 billion) of commercial properties, according to a person with knowledge of the plan.
IVG Immobilien AG, which owns OfficeFirst, may agree to the sale and scrap a planned initial public offering, said the person, who asked not to be identified because the information is private. The IPO, originally scheduled for as early as September, could raise as much as 900 million euros, people with knowledge of the matter said earlier this month.
Representatives at Blackstone and IVG declined to comment. The news was reported earlier by Reuters.
IVG, once Germany’s biggest property company by market value, was taken over by creditors in 2014 after its buildings lost value in the wake of the financial crisis. Chief Executive Officer Dietmar Binkowska said in April that the firm would bundle most of its office properties into the new unit and then sell all or part of the firm. IVG hired Goldman Sachs Group Inc. and Deutsche Bank AG last year to advise it on the sale of what’s now OfficeFirst, people familiar said in October.
OfficeFirst’s biggest asset is the ship-like Squaire office and hotel complex at Frankfurt airport. Blackstone, the world’s biggest private-equity real estate investor, already owns Frankfurt skyscrapers including the Messeturm, once the country’s tallest building.