Fair Value REIT will focus on office and logistic properties
- Attractive exit strategy for investors of closed-end real estate funds
IC Real Estate Group will create a REIT, which will have its IPO in autumn as one of the first German REITs (G-REITs). The REIT will offer Investors of closed-end real estate funds to change their partnership interests for shares of the listed REIT.
End of last week, Fair Value KG (limited partnership) informed the investors of at present 16 real estate funds about the prospective possibility to change their partnership interests for shares of the future REIT AG (incorporation). The investors will make their decision prior to the IPO. Hence, the REIT will already have a portfolio of partnership interests as well as a significant free float when going public.
Interested Shareholders will receive in the next weeks the legally required underwriting documents and will make their decision until end of June 2007.
In addition to the possibility to change the partnership interests for REIT-shares, the future Fair Value REIT AG will also offer the possibility of a complete or partial sale of the partnership interest, but at a discount on the exchange value. This exchange value will be calculated based on two current market valuation reports made by independent appraisers.
The future REIT AG’s goal is to acquire majority positions in the targeted funds. A complete takeover of the funds or a direct purchase of the funds’ properties is not intended.
“The portfolio strategy will be complemented by an active asset and portfolio management and implemented by further acquisitions in the future” says Oscar Kienzle, CEO of IC Immobilien Holding AG. “By Purchases, exchanges as well as sales a REIT will be developed, which is focussed on office and logistic properties throughout Germany and will have a market capitalization of approximately 1 billion Euros.” The REIT’s portfolio will in the beginning consist to a bigger part of limited partnership interests of closed-end funds which not only will come from IC Group’s business.
“We are of the opinion, that also private investors can benefit from the opportunities the new G-REIT asset class will offer. Particularly with regard to a change of partnership interests of a closed-end fund in REIT-shares, the investor receives an asset, which is much more fungible. The fiscal aspect is in many cases even more favourable compared to the current situation because investors will have to pay tax only on divided payments. A further advantage is the comparatively greater risk diversification by investing in a bigger portfolio. Additionally, capital markets currently honor the access to larger real estate holdings by granting a portfolio premium. We want to utilize these market conditions for our clients”, says Kienzle.
About IC Real Estate Group:
IC Real Estate Group (IC) has been active as a service provider in the real estate sector and as an initiator of closed-end property funds since 1988. It has a current staff of 200 employees, working from 11 locations in Germany and Canada. The group manages an investment volume of currently approximately € 4.5 billion for approximately 32,000 private and institutional investors. IC is a full-service provider, using the various companies in its group to offer its private and institutional investors any kind of real estate service, all from a single source.
Contact at IC
Stephan Holeczek
IC Immobilien Holding AG
Ohmstraße 4
85716 Unterschleißheim
Tel.: 089 / 55 22 7 – 362
Fax: 089 / 55 22 7 – 355
<link mail ein fenster zum versenden einer>investor.relations@ic-group.de
