Fraconofurt Plans IPO of Units FraconoWest and FranconoOst
German real estate firm Franconofurt plans to sell shares in its units FraconoWest and FraconoOst in separate IPOs to raise funds to buy more properties in the country, Boersen-Zeitung reported, citing Franconofurt's chief executive Metehan Sen.
FraconoWest's IPO will likely take place in September or October and will raise about 150 million euros ($201 million) to be used to raise planned spending on properties this year to 100 million euros from 30 million euros, Sen told the newspaper.
FranconoWest, which holds properties in the German state of North Rhine-Westphalia, aims to increase its property portfolio to about 500 million euros ($670 million) in the medium term, he said.
Another unit of Franconofurt, FranconoOst, which holds properties in the eastern German city of Leipzig, will launch an IPO at the end of 2008 or in early 2009, it said.
FranconoOst holds four properties in Leipzig and aims to expand in the cities of Dresden and Jena by spending 15-20 million euros this year.
Fraconofurt plans to retain a majority holding in both units.