FRANKFURT, Sept 24 (Reuters) - German logistics property group Garbe Industrial Real Estate is planning to float its Logistrial property unit on the Frankfurt stock exchange, Logistrial said on Tuesday, hoping to benefit from a boom in Germany's real estate market.
Garbe, which develops logistics facilities, warehouses and business parks in Germany, France and the Netherlands, is offering new shares worth 550-605 million euros ($604-665 mln) of its Logistrial unit.
Logistrial will use the proceeds of the deal to buy properties with a gross asset value of 768 million euros from Garbe, Logistrial said, adding that 95% of its shares would be widely held after the IPO.
Logistrial is targeting a dividend yield of 5% and a medium-term gross asset value of more than 2 billion euros. It aims to achieve the status of a Real Estate Investment Trust in 2020.
Deutsche Bank and JP Morgan are organising the deal with the help of Kempen.
The German property market has boomed in the past few years, prompting several companies to seek a flotation to benefit from rising prices for houses and commercial real estate.
Reuters reported in May that Garbe was targeting a stock market listing.
($1 = 0.9100 euros)
Reporting by Arno Schuetze Editing by Thomas Seythal