Idea Real Estate is looking to reach a market value of 500 million euros when it lists its shares on the Milan bourse later this year, the head of the Italian property trust said, betting on rising investor interest for the Italian market.
The main asset of Idea RE will be bank branches and offices leased to top Italian lender UniCredit which are worth 268 million euros ($301 million) net of debt.
These assets will be transferred to the Real Estate Investment Trust (REIT) only after the market debut as part of an accord with current owners who can opt to become either Idea RE shareholders or be liquidated.
Through the listing, Idea RE will need to raise in cash the difference between its goal market cap of 500 million euros and the value of the UniCredit properties conferred.
Idea RE Chairman and Chief Executive Alessandro Pasquarelli told Reuters in an interview the goal was to debut on the Milan bourse between the end of November and the beginning of December.
Italian REITs Sorgente RES and Coima RES also plan to go public in coming months as the domestic property market shows signs of picking up after a seven-year downturn.
Sorgente RES had aimed to list in July but had to postpone its IPO due to market turmoil triggered by the Greek debt crisis.
Idea RE, which filed its IPO request last week, expects to have up to 500 million euros in debt once listed, Pasquarelli said.
Idea RE is owned by Italian investment company DeA Capital which will keep a minority stake following the IPO.
Deutsche Bank and UniCredit are global coordinators and joint book-runners for the Idea RE IPO, while UBS is joint book-runner. (Writing by Francesca Landini and Valentina Za, editing by Stephen Jewkes).
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