German property group IVG plans to disslove three of its special funds as part of an extensive overhaul of its stable of funds, Ferdinand von Sydow, business manager for IVG Funds, said in an interview with daily newspaper Financial Times Deustchland. 'We are going to sell down three of our funds having a total volume of EUR 2 bn and then dissolve them,' Von Sydow told the newspaper.
German property group IVG plans to disslove three of its special funds as part of an extensive overhaul of its stable of funds, Ferdinand von Sydow, business manager for IVG Funds, said in an interview with daily newspaper Financial Times Deustchland. 'We are going to sell down three of our funds having a total volume of EUR 2 bn and then dissolve them,' Von Sydow told the newspaper.
He said the reason for the move was a change of sentiment among some investors who no longer want to invest as large groups and are less focused on broadly oriented funds. The funds' properties are to be sold in parts or in their entirety, Von Sydow said.
IVG is now planning more specialised products for smaller investor pools, such as a fund with environmentally-friendly buildings. The firm said it does not expect any great cash outflows as the new funds will also be offered to the old investors. Von Sydow said he hopes that IVG's special funds will again achieve total returns ranging between 5% and 7% mid-term. In 2009, returns dwindled down to zero, he said.
