Instone Real Estate plans Frankfurt listing: Reuters

Instone Real Estate Group, a German residential property developer, said on Monday it planned to list its shares on the Frankfurt Stock Exchange this year.

The company is expected to be valued at more than 1 billion euros ($1.2 billion) in a mid-February flotation, people close to the matter said.

Instone said that the placement will comprise new shares from a capital increase, with total gross proceeds of around 150 million euros ($183 million) as well as existing shares from fund holdings by ActivumSG Capital Management Ltd.

The size of this placement is yet to be determined, Instone said, adding it planned to invest around two-thirds of the expected gross proceeds to acquire and develop new residential projects and the remainder to repay a shareholder loan.

According to analysts from BNP Paribas Instone’s portfolio had a value of 870 million euros as of September. The company has since struck additional deals to develop property projects.

Sources had told Reuters earlier this month that Instone was targeting a flotation on the Frankfurt Stock Exchange in March.

Deutsche Bank (DBKGn.DE) and Credit Suisse (CSGN.S) are organizing the flotation with the help of Morgan Stanley (MS.N), BNP Paribas (BNPP.PA) and Unicredit (CRDI.MI).

Instone was formed by a merger of Formart, part of German builder Hochtief (HOTG.DE), which specialist real estate investor Activum bought in 2014 for roughly 300 million euros, and peer GRK.