Cash-strapped German property company Vivacon has signed an agreement to sell part of its development business to an unnamed international investor. The firm said it has sold five development projects in Berlin, Hamburg and Düsseldorf with a total project volume of EUR 345 mln. The transaction, which is conditional on approval by banks, is expected to be closed by June 30, 2009. The purchase price was not disclosed.
Cash-strapped German property company Vivacon has signed an agreement to sell part of its development business to an unnamed international investor. The firm said it has sold five development projects in Berlin, Hamburg and Düsseldorf with a total project volume of EUR 345 mln. The transaction, which is conditional on approval by banks, is expected to be closed by June 30, 2009. The purchase price was not disclosed.
Under the agreement, part of the employees working for Vivacon's development arm will join the purchaser in the course of the transaction. The buyer - an experienced developer of residential properties - intends to finalise the projects.
Vivacon said last week that it had immediate liquidity needs and was trying to extend credit agreements amid short-term fundraising that include asset sales.
