Eurobank Propeties IPO

Real estate investment company Eurobank Properties, a subsidiary of EFG Eurobank, set a binding price range of 14.6 to 16.2 euros for its initial public offering, scheduled for March 29-31. Eurobank Properties manages a portfolio of commercial properties, leased principally to corporate tenants including TIM Hellas, Carrefour and Marks & Spencer. The company will offer 5,510,066 new common shares in a public offering in Greece and one of its shareholders, REIB Europe Investments Ltd, a subsidiary of Deutsche Bank, will offer 1,100,000 existing shares in the company via an international offering to institutional investors. REIB Europe intends to offer a further 680,000 of its shares in Eurobank Properties as an over-allotment option. Based on 2005 financial results and the IPO’s set price range, the company will go public at 27.1 to 30.1 times its 2005 earnings. EFG Eurobank, Greece’s third-largest lender, holds 71 percent of Eurobank Properties. REIB Europe owns 15.9 percent and Lamda Development 13.2 percent. At end-2005 the firm’s real estate portfolio comprised 27 commercial properties with leasable space of 165,307 square meters, located mainly in the greater Athens area. The portfolio was valued at 271.3 million euros. Eurobank Properties had rental revenues of 16.9 million euros last year and reported a pretax profit of 15.8 million. Citigroup Global Markets and EFG Telesis Finance are the joint lead managers for the IPO. (Reuters)