FRANKFURT (Reuters) - German logistics property group Garbe Industrial Real Estate is planning to float its Logistrial property unit on the Frankfurt stock exchange, Logistrial said on Tuesday, hoping to benefit from a boom in Germany’s real estate market.
Garbe, which develops logistics facilities, warehouses and business parks in Germany, France and the Netherlands, is offering new shares worth 550-605 million euros ($604-665 mln) of its Logistrial unit.
Logistrial will use the proceeds of the deal to buy properties with a gross asset value of (678.32 million pounds) from Garbe, Logistrial said, adding that 95% of its shares would be widely held after the IPO.
Logistrial is targeting a dividend yield of 5% and a medium-term gross asset value of more than 2 billion euros. It aims to achieve the status of a Real Estate Investment Trust in 2020.
The German property market has boomed in the past few years, prompting several companies to seek a flotation to benefit from rising prices for houses and commercial real estate.
Reuters reported in May that Garbe was targeting a stock market listing.
Reporting by Arno Schuetze; Editing by Thomas Seythal