GERMANY - The IVG real estate group is slimming down its operations and transferring its German property management activities to third parties following a bidding process.
EPM Assetis, a subsidiary of Bilfinger Berger Facility Management, will manage 66% of the IVG's German properties from next year, whereas they are currently managed in-house.
Strabag Property and Facility Management will also take on the property and facility management of another 33% of its German assets
No clear figures on the value of these properties are yet available as some of its activity is already outsourced.
"Outside Germany these services are already largely handled by third-party service providers," IVG said.
The company employed Austrian strategy and management consultancy Advicum and the international law firm Lovells in its decision-making, in part because 35 IVG employees will be transferred to EPM Assetis as part of the outsourcing.
That said, IVG has been working with EPM Assetis and Strabag for some time. And Gerhard Niesslein, spokesman of the board at IVG since October 2008, was previously chairman of the board at DeTe Immobilien which was bought by Strabag.
"Following the spin-off, IVG and its almost 700 permanent employees will concentrate on the value-adding core business of its investment and fund activities," according to the firm.
IVG currently manages €22.6bn in assets under management.