The residential unit of Immofinanz AG in Frankfurt will be offered in an initial public offering as early as November. This was confirmed by Daniel Riedl, a member of the board of Immofinanz of Austria.
The listing of Buwog is done as Immofinanz AG seeks to expand the number of property listings in its portfolio in Northern Germany. While this was confirmed by Riedl, he refused to provide the targets of the expansion.
During a roadshow presentation targetting retail investors, Riedl said, "There have been successful initial public offerings lately, like LEG. We'd like to be part of that."
The goal of Immofinanz is seeking to become a purely commercial real estate company with the goal of increasing rental yield. The goal is to sell low-yield Austrian homes and utilize the proceeds to purchase a targetted 10,000 German apartments to add to the Buwog portfolio. Then, at the IPO, more than half of these acquired units would be sold.
The company is aiming to raise Eur700 million or US$910 million in selling its stake in Buwog, according to CEO Eduard Zehetner.
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