Nomura Real Estate Holdings is planning to undertake an initial public offer of shares that is said to be the largest one to date. The property affiliate of the biggest brokerage firm in Japan said that the expected windfall from the sale is pegged at 175 billion yen or US$1.8 billion.
The company is selling off a volume of 1.75 million shares in its real estate investment trust based in Tokyo by June 12. The REIT would have 227.6 billion yen of value consisting of warehouses as well as commercial properties in the Tokyo metropolis. This was confirmed in documents filed by the firm with the Japanese Finance Ministry.
This IPO follows the the offer made by Nippon Prologis REIT Inc worth 100.3 billion yen from February and the US1.3 billion share sale of GLP J-REIT last December, according to Bloomberg complied data. The final price of the Nomura REIT would be set by June 3.
The REIT Index of the Tokyo Stock Exchange has increased by 37% this year with expectations that the government would be accelerating its efforts to curb deflation to boost economic activity in the country. The largest increase of the index prior to this was in 2012 when it jumped 34%.
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