GERMANY - German real estate company IVG reported net losses for 2009 of €158m - almost all of which can be attributed to a project near the Frankfurt airport, an IVG-spokesman confirmed to IPE.
Having suffered losses of €452m in 2008, the €22.7bn real estate company conducted a cost-cutting and restructuring programme which led to the sale of properties and ended its direct property management by January 2010. (See earlier IPE Real Estate story: IVG moves out of direct German property management)
IVG spokesman Jens Friedemann confirmed both these steps were concluded in time but added there could be further sales in 2010 "for consolidation" reasons.
At least €150m of the remaining loss was attributable to a construction site near the Frankfurt airport, the Airrail Center. Friedemann pointed out that a few problems in the planning and construction process led to higher costs and devaluation but that the building will be finished this year.
To further consolidate its business IVG has decided to close its development business.
"We will only finish those projects we have already entered into," said Friedemann.
In the meantime, board member Georg Reul decided to leave IVG "for personal reasons", the company noted.
He will not be replaced as the remaining two board members taking over his responsibilities, according to the IVG spokesman.
However, Guido Piñol (41) will leave Fortress to join IVG group as speaker of the management board of IVG Investment GmbH and will in his newly-appointed role be responsible for IVG's on-balance sheet real estate business.