Market turmoil scuppers Whitehall’s Germany IPO plan

A German residential property company part-owned by Goldman Sachs’ Whitehall Funds and Cerberus Capital Management scrapped a plan for an initial public offering following fall out from Greece’s structural deficit problems and general market volatility

Hopes by Goldman Sachs’ Whitehall Funds and New York-based Cerberus Capital Management to bring German residential property company GSW Immobilien to the public market have been dashed by volatile capital markets.

Greece’s problems and wider economic events have led to the group calling off plans for a stock market flotation having announced the IPO earlier this year.

GSW had planned to raise up to €491 million ($654 million) by offering shares for €15 – €18.50 each, with the stock market debut slated for today.

However, in a statement issued on Wednesday, GSW said: “Since announcing its intention to float there has been significantly increased volatility and uncertainty in global equity markets.”

Whitehall and Cerberus purchased GSW from the city of Berlin for almost $2.6 billion in 2004.

It owns 49,700 residential properties comprising 33.4 million-square-feet and were valued at roughly $3.5 billion at the end of 2009, according to a company statement. GSW also manages another 17,000 residential properties.