German real estate investment company IVG Immobilien has secured the rights to develop a further 25 underground oil and gas storage facilities at its site in Etzel near Wilhelmshaven in Northern Germany. IVG currently operates 40 such facilities at the site, which are let to both oil and gas businesses and to governmental agencies responsible for managing national strategic oil reserves. Construction of the new storage facilities is expected to begin in 2012, with operations starting in 2015.
German real estate investment company IVG Immobilien has secured the rights to develop a further 25 underground oil and gas storage facilities at its site in Etzel near Wilhelmshaven in Northern Germany. IVG currently operates 40 such facilities at the site, which are let to both oil and gas businesses and to governmental agencies responsible for managing national strategic oil reserves. Construction of the new storage facilities is expected to begin in 2012, with operations starting in 2015.
The company said that it expects that the additional rights will lead to an increase in net asset value of approximately EUR 1.40 per share. Commenting on the announcement, IVG ceo Dr. Wolfhard Leichnitz stated that it represented a significant step forward in the company's strategy to develop the promising oil and gas storage business. He said that the strong demand for storage capacity meant that IVG expected to secure further rental agreements for their facilities in the coming months. The company plans to eventually operate 130 such facilities in Etzel.
