The institutional funds arm of German listed property company IVG has re-acquired the Holland House office building in Bonn from Aberdeen Asset Management's Degi Global Business fund. The price was not disclosed but Aberdeen said it was at the market value level determined by the last independent review.
The institutional funds arm of German listed property company IVG has re-acquired the Holland House office building in Bonn from Aberdeen Asset Management's Degi Global Business fund. The price was not disclosed but Aberdeen said it was at the market value level determined by the last independent review.
The Degi fund is selling of its assets, valued at EUR 254 mln in August, as it is closing down. The fund acquired Holland House and six other office properties from IVG Institutional Funds in 2007 for some EUR 155 mln.
Holland House was created on the grounds of the former Dutch embassy in 2003 and comprises 11,000 m2 of floor space. The property is leased to Deutsche Post.
IVG manages funds and mandates with a volume of EUR 15.4 bn, as well as EUR 4.1 bn of assets on the company's balance sheet.
Degi Global Business was launched in 2005 to create a diversified investment portfolio in Europe and Northern America. Despite having returned 5% on average in the first four years of business, investors panicked in late 2009 after they realised that the fund was overexposed in crisis-hit markets in Eastern Europe.
In particular, the value of the fund's real estate developments in Croatia and Romania suffered bitter setbacks. As a result, the fund was hit by massive outflows and had to close in mid-November 2010. Since then, Degi Global Business has been trying to sell assets to pay down investors and improve its liquidity ratio, which currently stands at 12.8%.
Aberdeen announced last August that Degi Global Business is to be liquidated by June 2014.
