Vivico Real Estate presents best results in company’s history - Core competence is development of urban districts – privatisation plannedcompany
- The result from ordinary activities as at end-2006 rose sharply to EUR 63.2 mil-lion (EUR 14.6 million)
- Net profit was well in excess of the previous year at EUR 22.4 million (EUR 13.8 million)
- Total assets grew to more than EUR 1 billion
- Core competence in development of urban districts is illustrated by project suc-cesses
- Sale of shareholders' interests planned
Frankfurt, 10 July 2007. The urban district and project developer Vivico today presented its results for the last financial year. "As at the close of 2006, we have recorded the best-ever results in the company's history," declares Vivico CEO Bernhard H. Hansen. The result from ordinary activities increased to EUR 63.2 million (previous year: EUR 14.6 million); consolidated net profit rose by 63% to EUR 22.4 million.
In addition to the planned sales from the portfolio, the value-enhancing measures of the urban district and project developments also contributed to the strong figures. In newly established urban districts, such as the Arnulfpark in Munich and the Erlenmatt in Basle, Vivico also recorded successes in the areas of development, letting and sales in 2006. Vivico stepped up its investment in project development in 2006 to EUR 191.2 million (previous year: EUR 108.5 million). Despite sales being carried out, the asset volume in the real estate portfolio still grew. Total assets at the close of 2006 were EUR 1.015 billion.
Vivico's shareholders are the Bundeseisenbahnvermögen (German Federal Railway Fund) (94.99%) and the German federal government (5.01%). Vivico was founded to create sustainable, long-term value, in order to then supply the owners with funds via a privatisation. "Following the exploratory phase in 2005, our owners have now decided to initiate the sale of shareholders' interests. Work towards this has been going on since April 2007 with the investment bank Sal. Oppenheim and the inter-national law firm White & Case," explained Hansen.
In the next few weeks, a list of possible investors will be drawn up and approached. After this, the plan is to provide short-listed investors with detailed information in a virtual data room. "Bids for the company could then be submitted as early as 2007," said Hansen. "The combination of prime inner-city locations and specialist knowledge of urban district and project development makes Vivico particularly at-tractive to foreign investors too."
Managing Director Ulrich Bollwerk takes a positive view of the real estate market in Germany: "Good turnover, falling vacancy rates and rising peak rents were already signalling a recovering office market late last year." This continued recovery will have a positive effect on the activities of Vivico in its various locations and market segments. "Vivico will, however, also benefit from the emerging trend for private investors and companies to return to the city," explains Bollwerk.
Hansen expects this positive trend to continue in the current financial year; Vivico will invest heavily once again in the next few years. Additions to the portfolio are planned, as well as investments in its own project developments, either independ-ently or with partners.
Consolidated figures for Vivico over time
Result from ordinary activities
Empolyees as at 31 Dec