Property firm Summit Germany to list unit on Frankfurt bourse
[BENGALURU] German commercial property group Summit Germany Ltd said on Monday that it was exploring an initial public offering of its Summit Luxco unit on the Frankfurt Stock Exchange. The listing of Luxco, which holds all of Summit's German real estate business, including asset and property management operations, would be subject to market conditions, the firm said.
Summit is also considering a private placement of shares in Luxco.
IPO proceeds in Europe fell 5 percent to $41 billion in 2018 as political uncertainty and growth concerns made it harder to persuade investors to buy stock.
"Summit is considering the listing to provide investors with the opportunity to invest in Summit's German real estate business and to facilitate Luxco's growth in Germany," the company said in a statement.
Summit, which will continue to be a major shareholder of Luxco, said it would diversify its real estate business and pursue investment opportunities throughout Continental Europe and other markets.
Summit Germany is 50.01 percent-owned by investor Zohar Levy, who is also managing director. It has a market capitalisation of 520 million euros. It is incorporated in Guernsey and listed on London's AIM market, but invests mainly in German office, retail, logistics and storage properties.
People close to the matter told Reuters last month that Summit was exploring a 2019 share sale to raise money for new investments and make it easier to trade its stock.
REUTERS
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