IVG hives off German property management

German listed property company IVG Immobilien announced on Tuesday that it is transferring its German property management activities to two specialist partner companies in order to focus on its core investment and fund activities. Outside Germany, management of IVG assets is largely handled by third-party service providers.

IVG said that with international property assets under management of almost EUR 23 bn (its own portfolio plus its fund business), it was now practical to transfer the property and facility management services relating directly to the buildings in Germany to specialist companies. These activities range from invoicing operating costs and rent collection to domestic technology, cleaning and security services.

Following a bidding procedure, the German property management activities will be reassigned to EPM Assetis, a subsidiary of Bilfinger Berger Facility Management Services, and Strabag Property and Facility Management at the start of 2010. EPM Assetis will assume 66% of IVG's German property portfolio and Strabag Property and Facility Services 33%. This also entails the transfer of 35 IVG employees to EPM Assetis. IVG was advised in this matter by the Austrian strategy and management consultancy ADViCUM Consulting and international law firm Lovells.

IVG and its remaining 700 permanent employees will concentrate on the value-adding core business of its investment and fund activities. In particular, these include letting and current tenant services, transaction business, the development of property strategies and the management of strategic partners. Development services for IVG’s property portfolio will be rendered by the new company IVG Asset. IVG's cavern business, which involves the underground storage of oil and natural gas, will not be affected by the changes.