IVG Immobilien AG is intensifying its involvement in Spain. For this purpose it is establishing a joint venture in Madrid. With the development of its European branch network, the Bonn-based real estate specialist is to focus more strongly on the office markets in Madrid and Barcelona. Luis López de Herrera-Oria is to be the managing partner of IVG Iberia.
López is the owner of the real estate consultancy company Rodex, which has a 20 percent stake in IVG Iberia. His previous positions include that of board member at Prima Inmobiliaria S.A., one of the leading Spanish listed real estate companies with more than 20 years experience in the property markets of the major Spanish cities.
The office markets in Madrid und Barcelona are developing in a positive fashion. In the second quarter of 2005, Cushman & Wakefield Healey & Baker (CWHB), the property company, sees declining vacancy rates and increasing average and top rent figures for Madrid and Barcelona. Returns in top locations are an indicator of market stability. At 5.0 percent and 5.25 percent respectively, these are at the same level as in London, Paris and Munich.
For years, economic growth in Spain has been at a stable level. In 2004, it was 3.1 percent. The earnings situation at Spanish companies is good. Financing costs are declining and the economic recovery in Latin America, where many Spanish companies have investments, is progressing.
At the EXPO REAL property trade fair in Munich, Eckart John von Freyend, Chief Executive of IVG AG stated: "With IVG Iberia and its manager Luis López de Herrera-Oria we are keeping to the factors which have made us successful - pan-European presence on a local basis in the key cities and intensive cooperation with strong, locally networked partners."
Source: IVG
