IVG will focus its activities even more intensively on customer orientation and the optimisation of its property portfolios' quality in future and is transferring its German property management activities to two specialist partner companies.
The stronger focus on core business means a reduction in the vertical integration of the IVG Group. With international property assets of almost 23 billion in its own portfolio and fund business (assets under management) it is now practical to transfer the services relating directly to the buildings in Germany property and facility management to specialist companies. These activities range from invoicing operating costs and rent collection to domestic technology, cleaning and security services.
Following a bidding procedure, German property management activities will be reassigned to two companies at the start of 2010: EPM Assetis GmbH, a subsidiary of Bilfinger Berger Facility Management Services, and Strabag Property and Facility Management GmbH. EPM Assetis will assume 66% of IVG's German property portfolio and Strabag Property and Facility Services 33%. This also entails the transfer of 35 IVG employees to EPM Assetis. IVG was advised in this matter by the Austrian strategy and management consultancy ADViCUM Consulting and the international law firm Lovells. Outside Germany these services are already largely handled by third-party service providers.
Following the spin-off, IVG and its almost 700 permanent employees will concentrate on the value-adding core business of its investment and fund activities. In particular, these include letting and current tenant services, transaction business, the development of property strategies and the management of strategic partners. Development services for IVG's property portfolio will be rendered by the new company IVG Asset Management GmbH. IVG's cavern business, which concerns the underground storage of oil and natural gas, will not be affected by the changes.
IVG Immobilien AG is one of the major real estate companies in Europe. The company manages assets worth 22.6 billion and is located in 19 selected major German and European cities, with approx. 700 employees. Via this network of local branches, IVG manages inter alia on balance properties with a market value of 4.9 billion. In northern Germany IVG constructs and operates underground storage caverns for oil and gas. In the fund segment IVG is the leading provider of tailored property funds for institutional investors. In combination with the closed-end funds for private investors, IVG manages funds and mandates amounting to a volume of 15.6 billion.
Source: IVG Immobilien AG