The Management Board and Supervisory Board of Hypo Real Estate Group have decided upon the strategic realignment and restructuring of the Group. The company will adapt its business model to the profound changes in the capital markets environment, and to the growing challenges in the real estate business. This restructuring is also a prerequisite for the support measures already provided by the Federal Republic of Germany, and for further support to be extended by the German Financial Markets Stabilisation Fund (SoFFin), which is required for the company's continued existence.
The objective of the strategic realignment is to reposition Hypo Real Estate Group as a leading specialist for real estate and public-sector finance in Germany and Europe, with a funding strategy focused on Pfandbrief issuance. The structural cost base will be reduced, and the balance sheet structure and risk profile enhanced. The Group plans to further simplify its corporate structure. The corresponding measures will be implemented over the next three years.
Discussions with SoFFin regarding extensive support measures are continuing.
CEO Dr. Axel Wieandt explained: "With the decisions taken today, the Group has taken necessary steps paving the way for its return as an active market participant in the medium term. Given the changes to the capital market environment