In spite of the challenging situation on financial and real estate markets, IVG sold a number of properties over recent weeks for a total of 470 million, the majority of them directly on the market, to private and institutional investors. At a 0.9% discount, sales proceeds were only slightly below the most recently ascertained market value. Hence, IVG has taken a considerable step to increase its financial flexibility and to safeguard the Company's liquidity situation in the long term.
The sales consist of 5 transactions in Milan (approximately 300 million), Paris (approximately 50 million), Luxembourg (approximately 49 million), Düsseldorf (approximately 37 million) and Budapest (approximately 33 million). In the first half of 2009, IVG already sold properties for approximately 550 million, around 50% of which on the market and 50% to funds.
Dr Wolfgang Schäfers, CFO of IVG, adds: "With these sales, IVG has already today achieved the objective it set itself at the beginning of the year to dispose of properties worth approximately 1 billion by the end of 2010.
Following the prolongation of bank loans in spring 2009, the last important step of the Company's restructuring has been successfully implemented ahead of schedule."
Dr Gerhard Niesslein, CEO of IVG Immobilien AG added: "Having ensured the Company's stability, our work will now focus on the third step of our strategic realignment: improving the Company's operations and taking advantage of selected market opportunities."