(Revised article)
The Bonn-based real estate group IVG Immobilien AG has concluded its sales programme for 2005 in line with forecasts. The final transaction was concluded at the end of December in Finland. IVG sold a retail property in Vantaa with rental space of 15,800 m² for €27 million. IVG had previously let the building on a long-term lease. The sale illustrates the Bonn-based group's policy of concentrating on office properties located in important European metropolises and growth centers.
On the photo: Jumbo shopping center in Helsinki, which IVG sold to Rodamco Europe late 2005
In the past financial year, IVG sold real estate with a total value of more than €400 million. These sales will generate an income before taxes of over €130 million. As in the years before, investments exceeded sales clearly in the past financial year.
"Along with rental income and income from our real estate funds, sales profits make a regular contribution to our annual financial results. We dispose of properties that do not fit anymore into our real estate portfolio and properties whose value have increased following the implementation of modernisation work or new lease contracts," comments
Eckart John von Freyend, Chairman of the Management Board at IVG, on the sales programme.
IVG expects to increase net profit for the year to a total of more than €100 million in 2005. Due to high value increases generated by caverns and foreign properties, the net asset value of the share (NAV) has increased to more than €17.
Furthermore contracts and binding pre-contracts for the sale of real estate and project developments in Brussels, Budapest, Munich and Kassel with a volume of more than €350 million were concluded across Europe. These will generate a profit contribution of up to €100 million in 2006. Thus in 2006 IVG expects once more an improved result.
Source: IVG
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