Following the granting of approval by the German, European and Finnish anti-trust authorities, IVG Immobilien AG exercised its right to acquire 71.42% of the Polar Real Estate Corporation on 31 October 2003. The shares were acquired from the former major shareholders in the company, UPM Kymmene, Nordea, Kone and WÃÂ¤rtsilÃÂ¤, at a price of Ã¢âÂ¬0.75 per share, a total of Ã¢âÂ¬96.4 million.
In view of further share purchases on the stock exchange, IVG currently owns more than 76% of the shares in Polar.
IVG will present a purchase offer to the remaining shareholders of Polar for their shares between 7 November 2003 and 8 December 2003. The purchase price of Ã¢âÂ¬0.75 per share will be the same price paid to the major shareholders. The purchase offer is approximately 25% above the weighted average price for the last twelve months.
PolarÃ¢â¬â¢s real estate portfolio, which amounts to approximately Ã¢âÂ¬350 million (260,000 mÃÂ² of rented floor space) comprises 60% office real estate and 40% shopping centres in attractive locations. In addition, Polar owns real estate in Helsinki with development reserves for more than 200,000 mÃÂ² gross surface area. Around 70% of the 38 properties owned by Polar are located in Helsinki. 95 % of the portfolio is leased. PolarÃ¢â¬â¢s sales in 2002 amounted to Ã¢âÂ¬61.9 million, and the net income for the year was Ã¢âÂ¬28.9 million.
IVG administers a real estate portfolio of around Ã¢âÂ¬6 billion and is currently developing a pro rate project development volume of Ã¢âÂ¬1 billion. The company is concentrating its investments in EuropeÃ¢â¬â¢s major capitals and growth centres.