The Delin Development Group has acquired the assets of pan-European real estate developer Immo Industry Group, which was declared bankrupt last month. Together with the core of IIG's former management, Delin is launching a new major player on the real estate market: Ulogis.
The new group will be active as an industrial and logistics real estate project developer and will offer associated listed funds to the investor community. Ulogis will initially operate throughout Europe and is set to expand its activities to other continents within the near future.
The Delin Development Group is a leader in real estate developments in Russia and Ukraine. Established in 1995, Delin's turnover for 2007 was over US $1 bln. The acquisition of Mosinzhstroy, Moscow's leading general contractor, in 2004, was a significant and complementary addition to Delin's impressive development capabilities. Delin is also very active in Ukraine: it has acquired industrial parks land sites at strategic locations throughout the country and it has expanded its logistics activities.
Ulogis' second leg is the asset base of pan-European industrial and logistics real estate developer Immo Industry Group (IIG), which was forced to file for bankruptcy last month following the liquidation of its most important project acquisition fund, Belgravia, and the international financial markets crisis. Delin quickly appreciated the extent to which IIG complemented its own business focus and acquired all IIG asset companies. This included over 800,000 m² of references, a portfolio of completed or nearly completed projects, a significant pipeline of new projects and the core of IIG's former management at its head office and foreign offices that has all the required skills and know-how to develop industrial and logistics real estate projects for blue chip clients throughout Europe. Ulogis will be led by IIG's former core management. Filip Schelfhout, former IIG Executive Chairman, will be Ulogis' CEO.
Ulogis aims at becoming a major player on the real estate market and will focus on three core activities. Firstly, it will manage the portfolio assets it acquired from IIG's bankruptcy and it will add further projects to its existing portfolio through acquisitions. Secondly, Ulogis will develop tailor-made industrial and logistics real estate solutions. Thirdly, Ulogis will add speculative project developments to its activities.
Ulogis' portfolios will be made available to investors through stock exchange listings. Ulogis currently has 29 real estate projects in its portfolio and preparations for new operations are underway at this moment. Ulogis is confident that the combined Delin-IIG pipeline will enable the company to expand rapidly, extending IIG's reference list to well over 1 million m² of real estate projects in the near future. In addition, Ulogis will safeguard the commercial and contractual rights and interests of IIG's former partners and projects, such as its own investment funds. It will continue to provide high service levels to the clients it gained through the acquisition of IIG's assets. Its head office is to be established in Ghent, Belgium, with foreign offices throughout Europe. Ulogis will initially operate throughout Europe and is actively pursuing current opportunities in other continents to expand its activities.