German property giant IVG said it has raised EUR 910 mln from institutional investors for its new Caverns Fund. Back in September IVG announced it was selling 70 caverns, underground storage facilities for oil and gas, to the newly created Spezialfonds for EUR 1.7 bn.
German property giant IVG said it has raised EUR 910 mln from institutional investors for its new Caverns Fund. Back in September IVG announced it was selling 70 caverns, underground storage facilities for oil and gas, to the newly created Spezialfonds for EUR 1.7 bn.
The fund has already acquired 40 of the caverns from IVG and the rest which are under construction and have secure long-term tenancy agreements will be transferred step by step between now and 2014 as they are completed.
The fund is the largest vehicle created by IVG for institutional investors. The company has forecast the fund will have an average annual pay out of 7.8%. IVG said it will no longer develop and operate caverns but will retain an interest in the segment with a EUR 50 mln co-investment stake in the fund.
