Germany's Adler Real Estate announced on Friday that it plans to withdraw from asset and property management on behalf of third parties in order to focus on the sale of its own property portfolio.
Germany's Adler Real Estate announced on Friday that it plans to withdraw from asset and property management on behalf of third parties in order to focus on the sale of its own property portfolio.
The disposal of commercial properties will be done project-specifically to investors, whereas residential properties will be divided into small sections, it added. Adler RE said that it aims to use the proceeds 'to make cash-flow orientated investments in the currently favourable market.'
The Hamburg-based company added that it plans to terminate its collaboration with AIG Global Real Estate, with which it jointly owns 16 assets in Germany. These properties will be transferred to AIG Global Real Estate and the related asset and property management agreements will be terminated. The details of the operation are currently being negotiated with AIG Global Real Estate, it said.
As a result of the restructuring plan, a number of positions will be made redundant, Adler said, but declined to disclose further details. The restructuring is conditional on approval by the supervisory board.
Earlier this month Adler said that it expected to break even in the 2009 fiscal year as a result of few property sales. Earnings in the first six months of the year were depressed by the write-offs on investments and the absence of large-scale transactions, it added.
