Germany's IVG slumps to e452m loss, streamlines business

Bonn-based IVG Immobilien, Germany's largest listed property company, posted a consolidated net loss of e452m for 2008, turning round a profit of e301 in 2007, entirely due to high, non-cash losses in market value amounting to e944m. But it has signed term sheets to extend credit lines of e1.3bn due to expire soon. The company has also approved a strategic realignment of its business mode to adjust the company to the financial market crisis. "We want to take the risk out of the company and therefore we are cutting the development pipeline," CEO Gerhard Niesslein said. "Long term we want to return to the good old IVG model, boosting assets under management and looking where are there are reasonable properties that one can acquire, how one can massage them, look after them, manage them and then dispose of them eventually again."