UPDATE 1-Cerberus may list German real estate as REIT -sources

Thu Apr 4, 2013 10:43am EDT
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* Cerberus may list property assets as early as H2 -sources

* May list as REIT or normal property company -sources

* To decide on how to list later in year -sources

* BofA Merrill Lynch, JP Morgan, G.Sachs to organise listing

* Cerberus, banks decline to comment

FRANKFURT, April 4 (Reuters) - Private equity group Cerberus is mulling listing its German retail property holdings as a real estate investment trust (REIT), in a move that could help it avoid paying corporate tax, two sources said.

Alternatively, the U.S.-based investor could list the buildings, which are valued at roughly 2 billion euros ($2.6 billion), as a normal real estate company, two people familiar with the transaction said on Thursday.

International investors are flocking to the German property market as yields on safe assets such as German bonds vanish and as property is considered the next low-risk asset class.

A decision will be taken later this year when the preparations for the initial public offering (IPO) are gaining pace, said the sources, adding the listing may take place as early as the second half of 2013.   Continued...