Japanese REIT goes for IPO.

According to the WSJ,

Nomura Real Estate IPO
Could Raise $1.12 Billion
By KAZUHIRO SHIMAMURA
September 12, 2006

TOKYO — Nomura Real Estate Holdings Inc. set a tentative price range of 3,200 yen to 3,500 yen ($27.37 to $29.94) a share for its coming initial public offering of stock.

The real-estate arm of Nomura Holdings Inc. could raise at least 131.2 billion yen ($1.12 billion). The shares are scheduled to start trading on the Tokyo Stock Exchange Oct. 3.

Based on the tentative price range, the IPO of 41 million shares would be the largest by far in Japan this year, exceeding the 52 billion yen offering in March by Alpen Co. At that price range, the newly offered shares would trade at 19.9 to 21.8 times the company’s projected earnings for the fiscal year ending in March.

The company will take orders from institutional investors for a week starting tomorrow. The offering price will be announced Sept. 21.

Write to Kazuhiro Shimamura at [email protected]

Sounds like a good play in the Japanese RE market which was flat for 15 years and has just started to rise. Also a good hedge against the US dollar. A lot of people think the Yen will also rise against the USD in the near future.

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