IVG Immobilien plans to raise EUR 145 mln in a capital increase to help finance the construction of pre-let and partially pre-sold oil and gas storage caverns. Germany's largest listed property company plans to issue 69 million new shares at EUR 2.10 per share.

The new shares will be offered to existing shareholders at a subscription ratio of 2:1. Subject to the approval of the German Federal Financial Supervisory Authority (BaFin), the subscription period will run from 1 to 14 December 2011.

After the successful early extension of several credit lines with total debt extensions of EUR 2.6 bn during 2011, IVG's management decided to take a further step to optimize the operational and financial standing of the company via the EUR 145 mln underwritten capital increase.

IVG intends to use a smaller portion (5%-15%) of the net proceeds to increase its investment capacity in line with its platform strategy for potential seed investments.

Berenberg Bank, Commerzbank and UBS are the joint global coordinators and are acting together with UniCredit Bank as joint bookrunners.

IVG Immobilien manages a real estate and caverns portfolio valued at EUR 22 bn.