Real Estate Property Funds

IVG Immobilien Extends Lease With Allianz Deutschland for Frankfurt Property by 16 Years

IVG Immobilien (FRA:IVG) announced on Thursday, April 4, that it has extended its lease with Allianz Deutschland for the office property at Theodor-Stern-Kai 1 in Frankfurt by 16 years. The office building has gross leasable area of approximately 51,000 sq. m. and was constructed in 2002.

“We are convinced of the Theodor-Stern-Kai location’s qualities and, following close examination by our customer, we have seen off strong competition throughout the Rhine-Main region with the overall package consisting of a central location, high-quality space and good asset management,” commented Wolfgang Winkler-Sümnick, head of the property fund’s Central region.

**IVG Pares Loss in 2012**
IVG reported in March consolidated net losses of €98.7 million (₤83.8 million) for 2012, a considerable improvement from the previous year’s loss of €126.0 million (₤107 million) but still short of self-set targets. The property fund’s loss was caused partially by extraordinary non-cash expenses in the last three months of 2012, due in particular to project developments and financing activities from the years 2006 to 2008. Without these costs, IVG would have been able to report an almost break-even result for the full year.

In 2012, IVG Immobilien raised about €965 million (₤819 million) from institutional and private investors and invested a total of €1 billion (₤849 million) for its institutional investors. In total, the property fund bought and sold real estate and infrastructure assets worth approximately €1.4 billion (₤1.19 billion). Since launching its restructuring programme in 2009, IVG has reduced its debt by a total of €1.3 billion (₤1.1 billion).

**Green Leases**
According to a press release published on March 11, nearly 25 percent of the property fund’s agreements in 2012 were concluded as “green leases”. Green clauses commit lessees to sustainable use and lessors to sustainable management of the property. “For many tenants, the protection of ecological resources has become an important factor when renting space. Lessors have to be able to answer this,” says Dr.

Thomas Beyerle, Head of Corporate Sustainability and Research at IVG Immobilien AG.
Green leasing means that an agreement can be made to use biodegradable cleaning products or to water the outside facilities in an environmentally friendly way. In addition to that tenants may commit to not heat or cool the premises excessively, while IVG endeavours to procure electric energy for jointly used areas predominantly from renewable sources. “It is important that all involved act in concert and that green clauses do not lead to unreasonable restrictions on lessees or lessors”, Beyerle explained.
**About IVG Immobilien**
!m[Property Fund Narrowed Net Losses to €98.7 million in 2012](/uploads/story/1815/thumbs/pic1_inline.png)
IVG Immobilien is one of the major property funds in Europe. The company manages assets worth approximately €21.4 billion (₤18.7 billion) and has about 550 employees in 19 selected German and European cities.
**IVG Immobilien’s share price was €0.615 as of 05.04.2013, 15.00 GMT.**
Read Real Estate Funds (REITs) –The Alternative To Direct Investment In Property for more information about property funds.

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