Residential developer Noratis debuts with latest property IPO
The small but ambitious residential real estate developer Noratis became the latest property company to IPO in Germany, after shares of the company started trading in the newly-founded Scale Segment for small companies of the Frankfurt Stock Exchange on 30th June. The company raised gross proceeds of €17.25m, with ICF Bank acting as sole global co-ordinator and bookrunner.
CEO Igor Christian Bugarski said, “We continue to see great market and growth potential. Our focus is on properties with development potential, mostly housing estates, employee housing and quarters of the 1950s to the 1970s. There are around 18 million residential units built in these decades. We regularly identify structural and/or commercial value enhancement potentials in these assets. This can be years of maintenance backlog or a high vacancy rate. We address these issues with our development measures. In this way, Noratis preserves and creates housing with an attractive price/performance ratio for medium and small incomes.”
While CFO André Speth added, “After this strategically crucial step for our company, we now need to focus on our operational business. With the proceeds from the IPO we want to continue our growth over the past few years by successively expanding our real estate portfolio and benefiting from increased financial flexibility regarding acquisition opportunities. At the same time, we are planning to distribute about half of the annual net income to our shareholders."