German property firm IVG said its underground oil and gas storage facilities unit will triple its share of the company's net profit to roughly a third of group profit within the next five years. Speaking at the Reuters Real Estate summit, ceo Wolfhard Leichnitz said the unit currently accounts for around 10% of total profit. He added that the company is also planning to expand its funds and investment business.
German property firm IVG said its underground oil and gas storage facilities unit will triple its share of the company's net profit to roughly a third of group profit within the next five years. Speaking at the Reuters Real Estate summit, ceo Wolfhard Leichnitz said the unit currently accounts for around 10% of total profit. He added that the company is also planning to expand its funds and investment business.
Leichnitz said IVG owns 40 storage caverns and has a licence to develop an additional 90, each with a capacity of 500,000 cubic metres, with completion set for 10 to 12 years, and providing the company with a 12% internal rate of return. The caverns are generally let to what Leichnitz described as 'Triple-A' tenants, including Statoil, BOP and E.ON.
