German listed property company IVG is postponing the planned flotation of its EUR 3.5 bn office unit in the form of a real estate investment trust (G-REIT) until market conditions improve, the group's CEO Wolfhard Leichnitz told German daily Boersen-Zeitung. Leichnitz added that the REIT spin-off, originally planned for April/May this year, would now take place by June/July.
German listed property company IVG is postponing the planned flotation of its EUR 3.5 bn office unit in the form of a real estate investment trust (G-REIT) until market conditions improve, the group's CEO Wolfhard Leichnitz told German daily Boersen-Zeitung. Leichnitz added that the REIT spin-off, originally planned for April/May this year, would now take place by June/July.
IVG said last year it would wait until 2008 to launch a G-REIT to be able to take advantage of a tax break for REIT conversion that will come into force as part of wider corporate tax reforms.
Germany introduced its REIT legislation in April 2007 and backdated it to 1 January.
Additionally, IVG's development unit said on Wednesday that it has acquired the former management board building of the union participation company BGAG in Frankfurt. The company plans to redevelop the existing office building with construction work due to start in 2008. Completion and marketing are scheduled for mid-2009.
