Bloomberg News

Cerberus Said to Name Goldman, JPMorgan, BofA for IPO

April 04, 2013

Cerberus Capital Management LP, the private-equity firm led by Stephen Feinberg, is moving ahead with an initial public offering of its German retail-property assets after hiring three banks to manage the sale, people with knowledge of the plan said.

Cerberus, which owns buildings valued at about 2 billion euros ($2.6 billion) that house German department stores, is working with Goldman Sachs Group Inc. (GS:US), JPMorgan Chase & Co. (JPM:US) and Bank of America Corp (BAC:US)., said two of the people, who asked not to be identified because the plans are private. The IPO could take place in the second half, they said.

Foreign investors are seeking to profit from soaring demand for German property assets. Goldman Sachs Group Inc. raised about 1.3 billion euros in January with the IPO of residential landlord LEG Immobilien AG.

Deutsche Annington Immobilien AG, Germany’s biggest residential landlord and a unit of Guy Hands’ Terra Firma Capital Partners Ltd., in February chose JPMorgan and Morgan Stanley to help manage its initial public offering, two people with knowledge of the decision said.

Spokeswomen for Bank of America, Goldman Sachs and JPMorgan declined to comment on the transaction.

Retail Purchase

Cerberus is one of Germany’s most active foreign real estate investors. In 2011, the firm bought 45 stores from Metro AG (MEO), Germany’s biggest retailer, including 42 Cash & Carry wholesale shopping buildings. The properties, located in large cities, had 900,000 square meters (9.7 million square feet) of rentable space.

In 2011, Cerberus sold its stake in GSW Immobilien AG (GIB), Germany’s third-largest residential landlord by market value. That IPO raised 468 million euros.

In 2007, Cerberus bought 112 buildings leased to the retailer Woolworth, according to a statement by Linklaters LLP, a law firm that advised Cerberus on its investments.

The FTSE EPRA NAREIT index of German property stocks has gained 16 percent in the past 12 months, while the German benchmark DAX Index has gained 12 percent.

Bayerische Landesbank, a German state-owned lender, is selling 32,000 homes valued at about 2.4 billion euros in what would be Germany’s largest property sale in five years. The company plans to complete the sale by the end of this month, people familiar with the transaction said in January.

To contact the reporters on this story: Ruth David in London at rdavid9@bloomberg.net; Aaron Kirchfeld in London at akirchfeld@bloomberg.net

To contact the editors responsible for this story: Jacqueline Simmons at jackiem@bloomberg.net; Andrew Blackman at ablackman@bloomberg.net


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Companies Mentioned

  • GS
    (Goldman Sachs Group Inc/The)
    • $164.67 USD
    • -0.24
    • -0.15%
  • JPM
    (JPMorgan Chase & Co)
    • $56.02 USD
    • 0.26
    • 0.46%
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