IVG Immobilien AG plans hive-off of €3 bln core portfolio (DE)

The CEO of IVG Immobilien AG, Dietmar P. Binkowska, took the occasion at the company's Annual General Meeting to inform the shareholders about the next strategic steps to restore the Bonn-based real estate company's capital market viability. A key element of the management's planning involves hiving off a large portion of the properties managed for the company's own account to a new company.
“Within our overall portfolio, we have identified a core portfolio with a value of around €3 bln with significant upside potential. We intend to move this prime cut of IVG Immobilien AG into a separate company,” Binkowska explained to the shareholders present. In addition to business with structured real estate products for institutional investors (IVG Institutional Funds GmbH) and caverns business (IVG Caverns GmbH), the core strategic business with office properties in Germany managed for the company's own account is to be operated as a subsidiary of IVG Immobilien AG in future.
“By taking this step, we will improve comparability with other market participants. We will also simplify the possibilities for refinancing the property portfolio and will ultimately open up a wide range of options for action that will enable the management to react quickly and flexibly to opportunities and challenges on the market,” said Binkowska, explaining the reasons for the plan. The preparatory work had already been underway for some time, said the CEO.
Source: IVG