German property giant IVG has readily available liquidity and unused credit lines of over EUR 1.3 bn, company directors Wolfhard Leichnitz and Bernd Kottmann informed shareholders in a letter last week, according to trade journal Immobilien Zeitung. The two executives are also counting on proceeds of over EUR 1 bn from IVG’s listing as a real estate investment trust (REIT) this year.
German property giant IVG has readily available liquidity and unused credit lines of over EUR 1.3 bn, company directors Wolfhard Leichnitz and Bernd Kottmann informed shareholders in a letter last week, according to trade journal Immobilien Zeitung. The two executives are also counting on proceeds of over EUR 1 bn from IVG’s listing as a real estate investment trust (REIT) this year.
IVG will use this warchest to seize on investment opportunities as they arise, which will likely take the form of takeovers of listed companies, the two men write.
Meanwhile, preparations for the REIT listing are going according to plan. Within the next few days, further IVG properties will be transferred to the ‘pre-REIT’, giving the vehicle a total volume of EUR 3.5 bn by early February. Depending on capital market conditions, the bourse listing will then take place in April or May, Leichnitz and Kottmann write.
The two men say further that IVG booked after-tax profit of at least EUR 290 mln in 2007, while net asset value per share rose to EUR 29.
