Concentrating on core business
As part of the strategic reorganisation of the business model, a decision was made to eliminate the existing Development division. Development services for the company’s own assets and fund assets are performed by the Asset Management central service unit. In the transition phase, current projects will be carried out on schedule and Development will be reported as a segment in the Investment division.
Systematic reduction of the project pipeline
The remaining project developments are high quality, in good locations and have excellent sustainability.
Despite the difficult market situation, IVG sold 3 developments in 2009, generating €131 million and an average trading profit of 26%.
Reducing the project development pipeline was gradually pursued further in 2010. In this context, up to 14 additional projects are expected to be transferred and invoiced in 2010. In doing so, IVG is increasing its efforts to work more closely with the IVG Investment and IVG Funds divisions to create integrated value. IVG Funds launched a “IVG Premium Green fund” as a specialised fund for some of the projects through which select project developments that are certified under the LEED standard are placed with institutional investors.
In addition to the completion of the current developments, increasing the value of the projects for sale by improving the occupancy rate is the focus of activities.
IVG Investment - Development | Key figures in € m, Status 31.12.2009
