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Hedge funds closer to $3.4 bn German property sale

gERMAN HEDGE FUNDS - IVG Immobilien AG copy

Bloomberg

U.S. hedge funds may sell stakes in office landlord IVG Immobilien AG in the second half as a turnaround of the once-struggling German company nears completion, people with knowledge of the matter said.
The funds are most likely to sell IVG’s main property business in a public offering, said the people, who asked not to be identified because the information is private. No final decision has been made on the exact timing and whether the owners will choose a listing over a private sale, the people said. The unit owns more than 3 billion euros ($3.4 billion) of German commercial buildings.
A spokesman at Bonn-based IVG, which on Thursday is reporting financial results for the first time in three years, declined to comment.
IVG’s owners include hedge funds Anchorage Capital Group, Davidson Kempner Capital Management and York Capital Management, according to one person. Representatives for Anchorage Capital and York Capital declined to comment. Davidson Kempner didn’t respond to a request for comment.
Last year, IVG hired Goldman Sachs Group Inc. and Deutsche Bank AG to advise it on the sale of its core property business, people said in October. Spokesmen for the banks declined to comment.
IVG, once Germany’s biggest property company by market value, was taken over by creditors in 2014 after its buildings lost value in the wake of the financial crisis. IVG has spent two years separating its units, exiting countries and reducing debt.

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