Germany's Prime Office said on Monday that it is planning to launch an Initial Public Offering (IPO) on the Frankfurt and Munich stock exchanges this summer beforing converting to a tax-transparent real estate investment trust (REIT).

Prime Office will thereby become the fourth German-REIT(G-REIT) after Alstria Office, Fair Value and Hamborner.

Prime Office focuses on investment in German office properties as well as facility and property management.

The company said the move towards G-REIT status is designed to support growth and strengthen its finances.

'The net proceeds from the IPO are designed to strengthen the capital base required to build a REIT compliant financing structure and to expand the property portfolio via targeted acquisitions of prime office properties in major German office locations,' it said.

UniCredit Bank and Berenberg Bank will act as joint global co-ordinators and joint book runners. Kempen & Co and Macquarie have been mandated as co-lead managers. The size of the capital increase will be determined immediately before the IPO, Prime Office said.

Prime Office owns a portfolio consisting of 14 office properties with 385,000 m2 located in major German cities and conurbations and valued at EUR 970 mln.

'Thanks to the planned IPO, we will be able to optimise our financing structure, accelerate growth via selected acquisitions and increase property values through lease extensions,' said Claus Hermuth, CEO of Prime Office.

Prime Office has been registered with the Federal Tax Authorities as a pre-REIT joint stock company since June 2007. 'We want to become a leading specialised REIT for prime office properties in Germany,' added Hermuth.