German real estate giant IVG Immobilien has reached agreement to combine EUR 1.3 bn of credit lines which were due to mature in the next two year into a single syndicated loan with 11 banks that matures in 2012.
German real estate giant IVG Immobilien has reached agreement to combine EUR 1.3 bn of credit lines which were due to mature in the next two year into a single syndicated loan with 11 banks that matures in 2012.
IVG said that in response to the changed market conditions, it has decided to reduce its number of business units from four to two. IVG Investment will be in charge of the company’s own investments (real estate and caverns) while IVG Funds will be responsible for planning, marketing and managing investment products for private and institutional investors. The former IVG Development division will be discontinued. Development services for the company's own portfolio will be provided by the services division of the asst management arm. IVG said the realignment will be implemented step by step until 2010.
The company posted a consolidated net loss of EUR 451 mln for 2008, compared to a consolidated net profit of EUR 301 mln the year before. IVG said the loss was due to high, non-cash changes in market value amounting to a loss of EUR 944.4 mln.
