After its successful IPO on Friday July 1, German office real estate company Prime Office AG has entered the FTSE EPRA/NAREIT Developed Europe Index. Prime Office AG is the third addition to the index from Germany since the beginning of this year and adds a portfolio of over 970 million worth of real estate to the Index.
Philip Charls, CEO of EPRA commented: "We are very pleased with the addition of Prime Office AG to the EPRA Europe Index. In the past six months, the free float market capitalization of German components in the Index has grown by about 33%. This is a very encouraging figure that of course we look at with cautious enthusiasm. There still is some way to go before Germany reaches the weight it deserves in the index".
Prime Office AG currently has pre-REIT status and the IPO opens the door to its conversion into a fully-fledged G-REIT. The conversion coupled with the fast track entry into the FTSE EPRA/NAREIT Developed Europe Index, will serve to increase an already strong interest from investors.
The EPRA index is the leading global benchmark and most widely used investment index for listed real estate. Following the inclusion of Prime Office AG, the index contains 86 constituents and includes the leading property companies of 16 European economies. These represent a free-float market capitalization of approx. 100 billion.