NEW YORK CITY—Paramount Group Inc., among thelargest privately owned commercial landlords in the US, isconsidering an initial public offering, according to Reuters. TheNew York City-based Paramount reportedly has retained Bankof America to explore strategic alternatives;GlobeSt.com's calls to Paramount was not returned by earlyafternoon Thursday, while a BofA spokesman declined to comment.

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Citing sources said to be familiar with the matter, Reuters saida Paramount IPO could raise around $2 billion in proceeds. It wouldrank second only to Hilton Worldwide Holdings' $2.7-billion IPOlast year among US real estate offerings. The IPO would valueParamount at between $10 billion and $15 billion, includingdebt.

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Other possible scenarios that Paramount is said to beconsidering include a reverse merger into a publicly traded REIT.Preparations for the proposed stock offering are still in the earlystages and any deal would be several months away, Reutersreported.

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Paramount's 16.5-million-square-foot office portfolio includes10 properties in New York City, including 1633 Broadway; six inWashington, DC; and one in San Francisco. The latter is thelandmark One Market Plaza tower, for which Paramount controls 51%of the equity and the Blackstone Group holds the remainder.

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“It's a good time to be public,” BarrySternlicht, chairman and CEO of Starwood Capital Group, told BloombergTelevision last fall. Sternlicht's firm is also reportedlypreparing for an IPO, as is Cantor Commercial Real Estate.

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Commercial real estate has seen a number of large-scale IPOscome to pass over the past nine months. Along with HiltonWorldwide, Blackstone also took two other lodging companies publicin recent months: La Quinta and Extended Stay America.

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The private equity giant also launched Brixmor Property Group as a publicly tradedcompany in an $825-million IPO this past October. Merlin Entertainments, the owner of SeawordSan Diego and Legoland, raised $1.53 billion in its IPO last fall.In the office sector, the public debut of Empire State Realty Trust, also last fall,brought in north of $1 billion in gross proceeds.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.