By redeeming about 120 million of the so-called SynLoan II from 2009 at the end of 2010, IVG proceeded according to plan with the execution of its earlier initiated debt relief program.
This program currently budgets redemptions of about 600 million in total by the end of 2012. IVG targets to reduce its loan-to-value ratio (LTV) from currently ca. 70% to a range of 60-65% mid-term by further redemptions.
Core element of the debt relief program is the scheduled use of proceeds from transfers of already fully let and in 2008 pre-sold caverns to a real-estate special fund initiated by IVG and subscribed by renowned German institutional investors, which will acquire 30 caverns in total by 2014 that are currently still being developed.
The next big redemption of about 180 million is scheduled for spring 2011. In total, this year about 200 million and in 2012 about 290 million will be redeemed. By executing this program IVG is taking another important step within its restructuring process.
Furthermore, the temporary prolongation of a 500-million financing for the project THE SQUAIRE announced in November 2010 could be successfully finalized by binding committee assurances of the associated banks in the meantime.
In combination with the financing activities for the segment Funds, IVG was able to effectively negotiate a financing volume in 2010 of over 2.2 billion of which 770 million can be accounted for as new business, particularly the successfully closed long-term financing for the cavern funds at the end of December 2010. The fund will acquire further caverns completed by IVG until the end of 2014 annually. Its financing (debt and equity) is hence also bindingly ensured within this forward structure.
Source: IVG Immobilien