Berlin-based residential real estate company GSW has set the date for its IPO as 15 April 2011, almost a year after it postponed its flotation citing 'significantly increased volatility and uncertainty in global equity markets'.

The price range for offered shares has been set at EUR 19 to EUR 23. The period during which interested investors can subscribe started on 1 April) and will end on 13 April 2011. The shares are expected to start trading in the Regulated Market (Prime Standard) of the Frankfurt Stock Exchange and the Regulated Market of the Berlin Stock Exchange on 15 April 2011.

'The planned IPO will provide us with permanent access to equity financing, enabling us to realise our planned growth. Furthermore, we have long-term financing in place with attractive conditions. We are, therefore, largely unaffected by potential interest rate movements in coming years,' said GSW CEO Thomas Zinnöcker in a statement.

The offering includes a public offering in Germany and Luxembourg as well as private placements to institutional investors outside Germany and Luxembourg. In total, the offer consists of 21,402,630 shares (excluding the greenshoe option). Up to 6,052,630 new shares will be offered from a capital increase, which is expected to generate around EUR 115 mln for GSW. The exact number of new shares to be offered will be determined at the end of the offer period, depending on the placement price. After the offer, selling shareholders are expected to hold less than 50% of outstanding shares.

According to GSW, the total issue volume - including the expected capital increase of approximately EUR 115 mln - could come to around EUR 517 mln if all existing shares offered and the shares from a potential greenshoe option are placed at the midpoint of the price range.

And, if the success of Hamburg-based Alstria office REIT's placement of new shares last month is anything to go by, the mood seems quite favourable to place property shares at the moment, Dirk Richolt, head of debt advisory services at CBRE in Frankfurt, told PropertyEU. 'This undertaking seems less risky than a year ago. Germany is regarded as a safe haven for real estate, so I would expect investor interest in GSW to be broad, with probably more than half of investors being international,' he added.

GSW will use capital raised from the IPO to acquire 5,000 to 6,000 residential units in Berlin over the next two years. The remaining net proceeds from the sale of the new shares will serve 'general corporate purposes' and strengthen GSW's capital base. In addition, GSW will use EUR 40.1 mln to repay the remaining tax liabilities from its former status as a tax-exempt housing firm.

The housing group postponed its planned IPO last May following volatility in global equity markets. Last year, GSW's shares were offered in a range of EUR 15 to EUR 18.50, or a discount of up to 30% on the company's estimated net assets at the time. Around 15.3 mln shares were offered.

GSW comprises almost 50,000 apartments over 3 million m2 in Berlin, valued at around EUR 2.6 bn as of 31 December 2010.