Dawnay, Day Treveria, the former German retail investment arm of failed banking and property group Dawnay, Day, has formally severed all ties with the defunct company, changing its name to Treveria.
As part of an overhaul of the listed company’s management, Treveria also has taken all asset management in-house, ending any relationship with Dawnay, Day.
In a statement, Treveria revealed it was also abandoning plans to raise additional equity in a bid to focus on “prudent cash and debt management” of its €2.2 billion property portfolio. Cushman & Wakefield also would replace Dawnay, Day as property managers.
Treveria was the largest publicly quoted property fund run by Dawnay, Day after the private financial services firm collapsed after failing to raise capital while struggling to meet margins calls from lenders.
Dawnay, Day Carpathian – which focuses on retail in Central and Eastern Europe – and Dawnay, Day Sirius – which targets business parks, offices and industrial complexes in Germany – two smaller AIM-listed funds also run by Dawnay, Day, have already taken similar steps to Treveria.
Treveria said previous moves to raise additional equity were abandoned as it would have required the firm to award an external asset management contract. Instead, Treveria argued it was time for “internalisation and cautious balance sheet management”.
Treveria’s debt was nearing the upper limits of its loan-to-value covenants, it added, meaning the firm now had to “engage in a constructive dialogue” with creditors to “find workable solutions in the event that market conditions deteriorate further”.