EUROPE – German real estate company IVG has put its joint venture with Italian listed real estate company Beni Stabili on hold due to "turbulence" within the German company.
Last November, IVG created an Italian joint venture in which Italian listed fund manager Beni Stabili acquired an initial 5% stake.
Recently, an IVG spokesman told IPE the joint venture would be "put on hold" until the restructuring of IVG could be completed successfully.
He said the company did not provide "an official explanation" for this decision.
IVG reported a consolidated net loss of €45.1m for the first quarter after a loss of €75.7m in the fourth quarter of 2012.
Meanwhile, the management board announced that it would develop "a new financing strategy comprising all levels of capital".
IVG has to deal with several major banking loans maturing late this year or early next year.
Its spokesman told IPE: "Talks with the debtors are ongoing and taking shape."
After the announcement, the share price fell from €2.4 to €1.6, and, over the following weeks, it fell further to €0.6. It currently stands at €0.22.
The company had to postpone its annual general meeting to 30 August.
Despite its troubles, IVG has been able to close new fund deals in recent months, including the purchase of the office tower Gallileo in Frankfurt in a club deal for South Korean institutional investors in mid-June.
In March, IVG purchased Zeil 94 in Frankfurt as part of a club deal structure for its institutional investors.
The company's former management under Eckart John von Freyend and Bernd Kottmann has been blamed in part for IVG's financial situation.
Both came under fire from shareholders in their new positions at German real estate company GSW and will be resigning.
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