IVG Immobilien AG is to carry out a real estate transaction with Rodamco Europe totalling €215 million, effective as of 30 November 2005. IVG will sell its share in the Jumbo shopping centre in Helsinki for approximately €135 million and, as a countermove, will acquire three office properties in Paris and Munich for around €80 million from the Dutch Retail REIT Rodamco Europe N.V. IVG will also receive a cash settlement of approx. €55 million and a right of first refusal to an office project development in Paris.
The office properties acquired are located in favoured office locations and offer potential for development, leasing and value appreciation. Both Paris properties encompassing 5,400 m² of rental space and the project development with approximately 3,000 m² are in the eighth arrondissement, in the immediate vicinity of the Arc de Triomphe. The Munich office property with 14,000 m² of rental space is located on Arnulfstrasse, close to the main railway station.
The Jumbo shopping centre which has 85,000 m² of floor space and is fully let, is close to Helsinki airport and was developed by the Finnish IVG subsidiary Polar together with partners. The building's second construction phase is almost completed and it will be opened on 26 October 2005. IVG acquired Jumbo in 2003 as part of the takeover of the previously listed Polar and administered an extensive project development in 2004, thus substantially increasing its value.
Dr. Eckart John von Freyend, Chief Executive of IVG AG, emphasised at EXPO REAL in Munich that "this multinational asset swap enables us to underline the ability to carry out complex real estate transactions. In this case, we also benefit from the smooth transition from one investment to another and avoid losing returns as a result of increased liquidity during the period between the transactions. The portfolio's focus on office properties was systematically continued through the transaction with Rodamco Europe."