IVG has launched Caverns Fund

IVG Immobilien AG issued the IVG Caverns Fund as of 13 November 2008 and fully placed it to institutional investors from Germany.

In early September, the company decided to sell 70 caverns (underground storage facilities for gas and crude oil) for approx. €1.7 billion to a real estate Spezialfonds. At first step, the fund has acquired in an asset deal 40 operating caverns from IVG. The further 30 caverns which are still under construction and for which long-term tenancy agreements have already been concluded will be transferred to the fund step by step between now and the year 2014 as they are completed.

With a fund´s equity of €910 million the Caverns Fund is the largest fund for institutional investors issued by IVG. It is an attractive investment for the twelve institutional investors, not only because of the prognosticated payout of 7.8% p.a. on average. The caverns have been let long-term to customers
with top credit ratings. For this reason, IVG will not only continue to develop and operate the caverns but will also continue to participate in the long-term potential of the 70 caverns with €50 million as a co-investor of the fund.

The Cavern Fund has a high strategic relevance for the developing of the IVG Funds business. The collaboration with institutional investors will be further strengthened - within a new asset class.

In 2008 the transaction generates for IVG a net profit before tax of €273 million, a contribution to consolidated net profit of €236 million and a cash inflow of €598 million.

Source: IVG Immobilien AG