Following the 320 million partial repayment of its 'CORE' financing four weeks ago, IVG Immobilien AG is reducing its liabilities to banks by a further 200 million with the scheduled completion and transfer of seven caverns to the IVG Cavern Fund.
Thus, loans of around 520 million have already been repaid in 2012 under the 'CORE' and SynLoan II financing alone. In the medium term, IVG intends to reduce the outstanding volume of its liabilities to banks of currently 3.9 billion by a further 800 to 900 million in the next two years to as far as 3 billion, corresponding to around 30% of liabilities to banks as at March 31, 2012.
Dr Wolfgang Schäfers, CEO of IVG Immobilien AG, said: "We have therefore not only ensured the growth of the IVG Cavern Fund on schedule, we have also again kept our promise on reducing debt."
CFO Dr Hans Volkert Volckens added: "The repayments to date will substantially reduce the company's interest expenses. We are therefore continuing to assume that we can end 2012 with an almost break-even result and comfortably move back into the black in 2013."
18 caverns have been completed and transferred to the IVG Cavern Fund since it was launched in 2008 with 40 existing caverns. This has generated total proceeds of around 500 million, which have been used in full to repay the SynLoan II loan. A further 12 caverns are scheduled to be completed and transferred to the fund by 2014.
Accordingly, the SynLoan II liabilities will therefore be reduced by an additional 300 million to around 540 million by the end of 2014. The IVG Cavern Fund will then be one of the largest infrastructure funds in the world with an investment volume of around 1.7 billion. The fund which is owned by 14 German institutional investors is managed by IVG Institutional Funds in its capacity as fund manager.