GERMANY - Gerhard Niesslein, chief executive at German property company IVG Immobilien AG, has said that he will not renew his board of management contract when it expires at the end of October.

Niesslein cited personal reasons for the move, which has caught many in the industry by surprise.

Wolfgang Schäfers, the current chief financial officer, has been appointed as Niesslein's successor, starting in his new role from 1 November.

Schäfers is also extending his contract by three years to 31 December 2014.

After the end of his term in office, Niesslein will retain links with IVG as the new chairman of the IVG Group Advisory Committee (Beirat).

He will also keep his position as chairman of the IVG Foundation.

The supervisory board said it would now start talks with a view to completing the board team on Niesslein's departure.

IVG, which manages more than €22bn of assets, is one of the major real estate companies in Europe, with a presence in 19 German and European cities.

It manages funds and mandates amounting to more than €15bn.