German real estate group IVG to launch 3 billion eur sale - sources

By Arno Schuetze and Alexander Hübner

FRANKFURT, June 28 (Reuters) - Real estate group IVG is launching a roughly 3 billion euro ($3.3 billion) asset sale as its hedge fund owners are hoping to lock in high prices in a buoyant German property market, three people familiar with the matter said.

IVG, which went through insolvency proceedings in 2013 after cost overruns at its landmark Squaire building at the Frankfurt airport made debt levels unsustainable, has sent out first information packages to prospective bidders, they said.

Deutsche Bank and Goldman Sachs are organising the potential stock market listing - which may take place as early as autumn 2016 - or alternatively a potential sale.

While the base case is an IPO, expressions of interest by potential buyers are due next month and first bids in September, the people said.

($1 = 0.9032 euros) (Reporting by Arno Schuetze and Alexander Hübner; Editing by Tina Bellon)