Prague-based firm seeks £250m to help fund Arcapita portfolio purchase
Pan-European logistics specialist P3 (PointPark Properties) is to float on the London Stock Exchange, in what will be the first real estate initial public offering in 18 months.
The Prague-based company, owned by Bahrain investment bank Arcapita, hopes to raise £250m from institutions. P3 will use the proceeds to help buy the €760m investment portfolio it manages for Arcapita and its funds, which will be deleveraged and expanded.
The balance of the purchase price will be met by issuing an equity stake of 15% to Arcapita. The IPO’s sponsor, Deutsche Bank, has been working on the deal for two years and has waited for equity markets to regain their appetite for flotations.
The flotations of Direct Line and German insurer Talanx in September show that investors are biting, as they defensively seek assets and high dividend yields, which P3 will offer. Although it is not a REIT, P3 expects to pay out a REIT-style 90%-95% of all its adjusted earnings.
The IPO is expected to appeal to real estate specialists who are keen to see new companies; income funds; long-term pension fund investors; and wealthy private individuals.
P3’s 46-strong portfolio is spread over seven western and eastern European countries and produces an annualised rent roll of €60.9m. There are also six development sites adjoining eastern European properties.
P3 chief executive Ian Worboys said: “We are operating in the resilient logistics sector, which has proven to be very active despite the challenging economic environment.”
Worboys, formerly with US developer Pannatoni, joined P3 in 2009 when a new management team was brought in. The board now includes UK heavyweights Ian Coull (formerly CEO of SEGRO) and Martin Moore (former head of Prupim) as non-executive chairman and senior independent director respectively.
Founded as Pinnacle in 2001, the company initially concentrated on Central and Eastern Europe. Merrill Lynch acquired a controlling stake in 2007 and sold it to Arcapita in May 2008.