IVG takes over Austrian fund manager

The German real estate company, which has €22 billion of assets under management, has acquired Vienna-based Hypo Real Invest.

Germany’s IVG Immobilien has beefed up its institutional funds business in Central and Eastern Europe via the takeover of Vienna-based Hypo Real Invest.

IVG said in an announcement, that the CEE region was a target real estate market for the firm and that the acquisition of Hypo would add assets valued at €160 million to its current €22 billion asset base. The firm currently manages €15 billion of assets in funds and separate accounts.

Hypo Real Invest was launched in 2008 and subsequently raised the HRI Immobilienfonds Number 1 real estate fund. The firm
 has offices in Warsaw in Poland and Bucharest in Romania.         

The takeover of Hypo Real Invest comes after a period of change for IVG. The Bonn-based firm restructured its financial liabilities in the first half of 2009 while simultaniously going on a cost-cutting drive. It boosted its corporate liquidity through €250 million of property sales and by radically reducing its debt.

In its 2010 third quarter results released earlier this month, chief executive Gerhard Niesslein said the company had enjoyed a “positive” quarter and that this reflected “renewed optimism in the markets”.

It reversed a €2.2 million loss incurred in the corresponding quarter in 2009 by posting a profit of €18.3 million.