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TLG property sale delayed till 2013-German govt sources
November 8, 2012 / 6:13 PM / 5 years ago

TLG property sale delayed till 2013-German govt sources

BERLIN, Nov 8 (Reuters) - The German government now expects the sale of state-owned real estate company TLG Immobilien to go through in 2013, not this year as originally planned, coalition sources said on Thursday.

The deal, which covers 12,000 flats in former East Germany and some commercial properties, had been expected to raise at least 1.7 billion euros ($2.16 billion), making it one of the country’s largest real estate deals this year.

The two coalition sources told Reuters not all legal requirements would be completed to allow the sale to go ahead on schedule.

German real estate group TAG Immobilien and private equity investor Lone Star are the favourites to buy the portfolio of properties, financial sources have said.

The Finance Ministry has said both the ultimate buyer and the price are still open.

International investors are vying for property in Germany, which has avoided the boom-and-bust prices of Spain or Ireland and which has seen stable increases in property values in the last couple of years.

$1 = 0.7857 euros Reporting by Matthias Sobolewski, writing by Gareth Jones; Editing by Elaine Hardcastle

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