Phoenix Spree Deutschland IPO: German rental property fund eyes a float on the London Stock Exchange
German real estate investment vehicle Phoenix Spree Deutschland will today announce it intends to float on the main market of the London Stock Exchange next month.
The company, which focuses on German residential property, will list in the second week of June, with 69.9m shares on the block.
The firm, which was founded by a group of City workers nine years ago, is being advised by Liberum.
The price of the float will be based on the company’s net asset value, which was €144m (£112m) at 31 December 2014.
Phoenix Spree founding partner Mike Hilton told City PM that no new money will be raised in the initial public offering (IPO), as no funding is currently required.
Hilton foresees a lot of growth in the market from a supply and demand imbalance, which is significantly pushing up rent levels for apartments in big German cities.
Hilton said: “There is quite a lot of corporate activity around the German residential property market, and from our perspective, the timing is very good to look to institutional investors to fund further growth.”
He said several initial investors will use the float as an opportunity to exit their investments.
Hilton added that the firm had chosen the London market because the investment vehicle is “basically British”, with a “vast majority” of its investors based in the UK.