In the first quarter of 2004, IVG Immobilien AG improved post-tax profits by 32.4% to €9.4 million from the previous year’s figure of €7.1 million. EBIT moved up by 2.9% to €32.3 million (PY: €31.4 million). The increase is due, in particular, to the settlement of the Périsud project development in Paris. Since these projects are being developed jointly in a joint venture with AXA, income from participations at IVG increased sharply.
'The good quarterly result marks a pleasing start into the 2004 financial year. The combination of the new shareholder structure with main shareholders having property experience and the majority stake in Oppenheim Immobilien-Kapitalanlagegesellschaft (OIK), the market leader for property special funds, point the way well beyond the current quarter. Both give a significant boost to the IVG European strategy', stated the Chairman of the IVG Board of Management, John von Freyend. According to him, the European property markets showed initial signs of a recovery in the first quarter of 2004. German office property markets are likely to bottom out over the course of the year. For the year as a whole, he expects a rise in the Group result.
Successful with sales and rentals
In the first quarter, the Finnish IVG subsidiary Polar Real Estate sold a shopping centre outside Helsinki with 13,000 m² rental space. IVG’s holding in Polar now stands at more than 95 %. The squeeze-out process has been initiated.
Despite ongoing difficulties on most property markets, IVG let more than 46,000 m² of its own property holdings. By contrast, tenancy agreements on only 16,000 m² were terminated.