DealBook: Terra Firma Real Estate Unit to Raise $1.5 Billion in I.P.O.

Brendan McDermid/ReutersGuy Hands, the British financier who runs the private equity firm Terra Firma Capital Partners.

LONDON – Terra Firma, the private equity firm run by Guy Hands, plans to raise around 1.1 billion euros ($1.5 billion) through the initial public offering of the German real estate company Deutsche Annington.

The company, one of Germany’s largest residential landlords, set an indicative price range on Wednesday of 18 euros and 21 euros a share, which would value Deutsche Annington at up to 4.3 billion euros.

The shares are expected to start trading on July 3.

The new offering comes after the successful initial offering of LEG Immobilien, which also specializes in German residential property and is owned by the Goldman Sachs investment fund Whitehall, which raised 1.3 billion euros earlier this year.

Terra Firma owns a majority stake in Deutsche Annington, while Apollo Global Management has a minority position. JPMorgan Chase and Morgan Stanley are coordinating the offering, and Bank of America Merrill Lynch and Deutsche Bank also are advising on the deal.

Article source: http://dealbook.nytimes.com/2013/06/19/terra-firma-real-estate-unit-to-raise-1-5-billion-in-i-p-o/?partner=rss&emc=rss