IVG Immobilien AG has applied for admission to the stock exchange for a German real estate investment trust (REIT). The start of listing on the regulated market of the Munich Stock Exchange is scheduled for July 24, 2012. The listing does not involve a public offer.
At the listing date, various IVG Group companies will hold a total of 75% of the shares in the IVG-REIT, while 25% will be distributed across a total of nine investors that acquired their shares prior to the stock market listing from IVG Immobilien AG.
The IVG-REIT has been registered as a 'pre-REIT' since August 2007. Following admission to the stock exchange, it will apply to be entered in the commercial register as 'IVG Immobilien Management REIT-AG'. The IVG executives Guido Piñol (Chairman), David Canals, and Jonas Kriebel have been appointed as members of the Board of Management of the IVG-REIT. Dr Wolfgang Schäfers (Chairman) and Dr Hans Volkert Volckens (Deputy Chairman) are members of the Supervisory Board.
Dr Wolfgang Schäfers, CEO of IVG Immobilien AG, comments: "This listing represents the systematic continuation of our corporate strategy and expands our range of indirect property investments to include another competitive investment structure that is known internationally.
"On account of current market developments, regulatory and tax conditions, and the changing financing environment, we are confident that the REIT investment platform will have a successful future in general, including in Germany. Accordingly, we also see potential in terms of the growth story of the IVG-REIT once the stock market environment for property shares improves."
The IVG-REIT is another component within the IVG Group, combining the Group's integrated platform strategy with business activities that are geared towards the REIT criteria.
"The IVG-REIT will remain fully consolidated in the long term. This means that the listing will have no impact on the Group's balance sheet and income statement, and should therefore be seen as a technical listing. The financing structure selected means that the IVG Group will largely be entitled to its profits. The NAV and FFO of IVG Immobilien AG will also be unaffected by the stock market listing," explains Dr Hans Volkert Volckens, CFO of IVG Immobilien AG.
"Ensuring the REIT status involves economic benefits for our company and our shareholders. Without the application for stock market listing, the pre-REIT status would have expired," concludes Volckens.
As of March 31, 2012, the 32 properties of the IVG-REIT have a market value of 1.35 billion and total usable floor space of 570,200 m² and generate annual contracted rent of 73.8 million. The properties are located in the major German metropolitan regions of Berlin, Dusseldorf, Frankfurt, Hamburg, and Munich. The Allianz insurance group is the largest tenant in the REIT portfolio, accounting for around 60% of the annual rent. No acquisitions for the IVG-REIT portfolio are currently planned.