IVG Immobilien AG, one of the largest real estate companies in Europe, has reported a larger loss in the second quarter of 2009 than was expected, due to a decline in revenue and devaluing of five of their developments. IVG has been impacted by the global financial crisis but according to statements by the company they expect the continued realignment of assets to enable them to take advantage of what now seems to be an upswing.

The company’s net loss in the second quarter was about 62.9 million euros (close to $89 million), which amounts to a loss of around 49 cents per share. The report for the same period a year ago showed a profit of approximately 22.4 million euros or 19 cents a share.

Based in Germany, IVG has investments in most major European cities, including a co-ownership in London’s Gherkin Tower. Since the drastic tightening of the credit markets, IVG is attempting to obtain around 300 million euros in government loan guarantees in order to retain their liquidity. This past March, IVG extended about 1.3 billion euros in credit lines to the year 2012. They also cancelled the dividend after losing close to 453 million euros last year.

IVG is presently cutting costs to help make up for a drop in office space demand (click desk space for current UK availability) and the loss of revenue following the sale of storage caverns, as well as a 99.5 million euro loss in value of the Airrail office project. Overall in the past six months the company has gained ground, raising the total market value to almost 700 million euros.

This entry was posted on Tuesday, August 18th, 2009 at 7:45 am and is filed under Economy, Public Relations, Real Estate Profits. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.