IVG-Annual Report 2002

Transcription

PASSION FOR REAL ESTATE.
Annual Report 2002
ANNUAL REPORT 2002
IVG Group in Figures
€m
2002
2001
Change
2000
1999
1998
Turnover
471.2
319.3
47.6%
321.3
423.6
388.3
Total operating performance
637.8
486.6
31.1%
434.7
543.6
505.3
EBITD
350.3
259.8
34.8%
201.0
172.8
168.7
EBIT (operating earnings)
188.7
165.8
13.8%
147.7
96.4
70.6
Net income from ordinary activities
111.1
90.0
23.4%
91.1
80.1
60.5
70.4
68.1
3.4%
61.9
53.9
46.9
Investments
358.3
432.2
- 17.1%
306.5
1,179.9
430.9
Total assets
3,185.3
3,021.9
5.4%
2,585.4
2,520.7
943.4
Fixed assets (book values)
2,675.5
2,441.5
9.6%
2,112.6
2,070.5
601.3
89.4
96.2
- 7.1%
91.1
90.0
106.7
769.5
758.4
1.5%
690.4
659.7
356.1
Equity ratio (book values) %
24.5
24.3
0.8%
27.4
25.3
34.9
Equity ratio (market values) %
41.2
45.2
- 8.8%
49.6
48.8
70.5
1,642.3
1,894.0
- 13.3%
1,845.0
1,793.8
1,408.5
763
- 1.7%
709
747
Net income for the year
Fixed assets cover %
Shareholders’ equity (book values)
Net asset value
Employees
IVG Immobilien AG
Dividend per share €
Zanderstrasse 5/7
53177 Bonn
* Excluding special dividend (€0.20 per share)
** Proposed
Germany
Investor Relations
Fax:
+49 (0)228 / 844-372
Email:
[email protected]
Public Relations
Phone: +49 (0)228 / 844-300
Fax:
+49 (0)228 / 844-338
Email:
[email protected]
Internet: www.ivg.de
IVG IMMOBILIEN AG
Phone: +49 (0)228 / 844-137
Annual Report 2002
750
0.34
**
0.34
–
0.33
0.31
2,268
*
0.29
TOP 10 INDUSTRIES
|2|
Organizational Structure
Net rent (%)
Overview 2002
Public institutions
25.3
Financial services
9.3
Electronics, micro/optoelectr.
7.8
Energy, chemicals, pharm.
6.2
Media, media production
5.8
Engineering, R&D
5.2
Transport, aero, automotive
5.0
Telecommunications
4.6
Retail
3.9
Real estate
3.7
IVG IMMOBILIEN AG
Chief Executive Officer
Dr Eckart John von Freyend
Portfolio Management
Dr Bernd Kottmann
Chief Financial Officer
Dr Dirk Matthey
Corporate Development
Germany
Finance
Fund Management
Portfolio Management Europe
P R O J E C T D E V E L O P M E N T, B Y R E G I O N
Total €1 billion, total investment €400 million
Munich
N E T I N C O M E P O S T- TA X
Investor Relations
Project Development
Affiliates and Associates
Project Development
Branch Offices
Accounting/Taxes
Communication/Marketing
Customer Relationship
Management
Group Controlling
Berlin
€ million
Düsseldorf
68.1
70.4
61.9
Brussels
12%
London
18%
5%
Milan
1%
Frankfurt
20%
Paris
12%
Hamburg
4%
Budapest
4%
53.9
46.9
R E A L E S TAT E H O L D I N G S AT M A R K E T VA L U E ,
B Y R E G I O N Total €3,172 million
32.1
Organization/Internal Audit
7%
17%
Legal/Insurance
Portfolio Controlling
Personnel
1997
1998
1999
2000
2001
N E T A S S E T VA L U E
350.3
€ million
BRANCH OFFICES
Berlin
2002
11%
Paris
11%
Milan
5%
Hamburg
8%
Iberian Peninsula 3%
Düsseldorf
7%
London
7%
Frankfurt
4%
Brussels
25%
Munich
14%
Other
5%
259.8
Berlin
Budapest
Frankfurt
London
Munich
168.7
112.9
188.7
EBIT
165.8
Paris
147.7
Milan
96.4
Hamburg
REAL ESTATE HOLDINGS AT MARKET VALUE, BY
TYPE OF USE Total €3,172 million
70.6
Düsseldorf
201.0
50.6
Brussels
172.8
1997
1998
1999
2000
2001
2002
(Operat. earnings)
EBITD
A F F I L I AT E S A N D A S S O C I AT E S
Imprint
Office
62%
Business parks
21%
Commercial, logistics
11%
Other
Stodiek Europa
Immobilien
Project Development
TERCON
Jobau
Fund Management
Wert-Konzept Cologne
HL Hannover Leasing
Other
Berlin Brandenburg International Partner (BBIP)
AV E R A G E M O N T H LY R E N T R E C E I V E D
PER SQUARE METRE
in €
IVG InfoTec
9.20
11.19
Zanderstraße 5/7
Offizin Paul Hartung, Hamburg
Germany
Total €209.2 million
2000
Photographer
Gerd Rettinghaus, Düsseldorf
Office
58%
IVG Immobilien AG, Bonn
Business parks
18%
Getty Images, Inc. (S. 8, 12, 20, 24, 28)
19%
Other
1999
Printing
Photo credits
5.55
1998
IVG Immobilien AG
9.22
7.92
1997
Kirchhoff Consult AG, Hamburg
Published by
53177 Bonn
R E N TA L I N C O M E , B Y T Y P E O F U S E
11.16
ci projektmanagement
Wert-Konzept Berlin
6%
Concept and Design
2001
2002
5%
This annual report is also available
Bildagentur mauritius GmbH (S. 12, 16, 28)
in German.
zefa visual media GmbH (S. 8)
TOP 10 INDUSTRIES
|2|
Net rent (%)
Overview 2002
Public institutions
25.3
Financial services
9.3
7.8
6.2
5.8
Engineering, R&D
5.2
5.0
Telecommunications
4.6
Retail
3.9
Real estate
3.7
IVG IMMOBILIEN AG
Dr Bernd Kottmann
Dr Dirk Matthey
Germany
Finance
Fund Management
Munich
Investor Relations
Project Development
Project Development
Branch Offices
Accounting/Taxes
Management
Group Controlling
Berlin
€ million
Düsseldorf
68.1
70.4
61.9
Brussels
12%
London
18%
5%
Milan
1%
Frankfurt
20%
Paris
12%
Hamburg
4%
Budapest
4%
53.9
46.9
32.1
7%
17%
Legal/Insurance
Personnel
1997
1998
1999
2000
2001
350.3
€ million
BRANCH OFFICES
Berlin
2002
11%
Paris
11%
Milan
5%
Hamburg
8%
Düsseldorf
7%
London
7%
Frankfurt
4%
Brussels
25%
Munich
14%
Other
5%
259.8
Berlin
Budapest
Frankfurt
London
Munich
168.7
112.9
188.7
EBIT
165.8
Paris
147.7
Milan
96.4
Hamburg
70.6
Düsseldorf
201.0
50.6
Brussels
172.8
1997
1998
1999
2000
2001
2002
(Operat. earnings)
EBITD
Imprint
Office
62%
Business parks
21%
11%
Other
Stodiek Europa
Immobilien
Project Development
TERCON
Jobau
Fund Management
HL Hannover Leasing
Other
PER SQUARE METRE
in €
IVG InfoTec
9.20
11.19
Zanderstraße 5/7
Germany
2000
Photographer
Office
58%
Business parks
18%
19%
Other
1999
Printing
Photo credits
5.55
1998
IVG Immobilien AG
9.22
7.92
1997
Published by
53177 Bonn
11.16
Wert-Konzept Berlin
6%
Concept and Design
2001
2002
5%
in German.
IVG is one of Europe’s major listed real estate companies, with property under
management worth some €5 billion – including €3.2 billion in its own real estate
portfolio.
We pursue a clear strategy in our core activities of portfolio management and project development:
Focus on office properties and business parks in major European cities and
growth regions
Exploitation of cyclical differences between real estate markets
Upgrading of the existing real estate portfolio
Cost-effective project development
Combined with our value-driven corporate philosophy, this is a strategy for
continued profitable growth.
Mission Statement
Madou Plaza, Brussels (model)
|1|
4
EUROPE AT ITS BEST – A TOUR
OF EUROPE‘S MAJOR CITIES
IVG Businesspark
Hamburg
Nord
Boulevard Haussmann,
Paris
Place de la Madeleine,
Paris
p.
6 IVG LOCATIONS IN EUROPE
p.
8 BERLIN
St James’s Street,
London
Andrássy út,
Budapest
p. 12 LONDON
p. 16 BRUSSELS
p. 20 PARIS
p. 24 MUNICH
p. 28 FRANKFURT
p. 32 MILAN
p. 34 DÜSSELDORF
p. 36 MADRID/LISBON
p. 38 HAMBURG
p. 40 BUDAPEST
p. 41 POLAND
Eu
|3|
44
74
IVG PROFILE
FINANCIAL PERFORMANCE
Via Carducci,
Milan
Le Croissant,
Brussels
Nordostpark,
Nuremberg
p. 44 LETTER TO OUR SHAREHOLDERS
p. 48 STRATEGY AND VALUE MANAGEMENT
p. 54 OUR BUSINESS
p. 56 PORTFOLIO MANAGEMENT
p. 62 REAL ESTATE PORTFOLIO
p. 66 PROJECT DEVELOPMENT
p. 72 FUNDS
p.
p.
p.
p.
p.
p.
p.
p.
p.
p.
74
83
88
90
100
107
124
129
130
134
SHARES
EPRA
CORPORATE GOVERNANCE
GROUP MANAGEMENT REPORT
GROUP FINANCIAL STATEMENTS
NOTES
REPORT OF THE SUPERVISORY BOARD
AUDITORS’ REPORT
SUMMARY OF MAJOR SHAREHOLDINGS
SUPERVISORY BOARD / BOARD OF
MANAGEMENT, ADVISORY COMMITTEE
p. 138 FINANCIAL CALENDAR
rope
at its best
Passion
»The fascination of real estate is the constant driving force behind our work. Real estate is far
more than bricks and mortar: it is an architectural witness to history, defines the space in
which we work, live and grow, and unites form and function with personality and individuality.
|5|
for Real Estate
Step inside our world and you will understand why
›passion for real estate‹ is not just our motto, but our
way of life.«
|6|
IVG locations
in Europe
Office markets, fourth quarter 2002 (with change over previous year)
London
€96.3/m2
(▼ 12.4%)
€69.8/m2
(▼ 12.8%)
Brussels
€20.8/m2
( 9.0%)
▼
€15.8/m2
( 9.4%)
▼
597.7 k m2
(▼ 37.7%)
427.6 k m2
(▼ 16.3%)
8.1%
(▲ 2.6%)
8.6%
(▲ 1.8%)
6.25%
0.0%)
▼
(
6.75%
0.0%)
▼
(
Paris
€58.3/m2
(▼ 8.2%)
Top monthly rent (€/m2)
Average monthly rent (€/m2)
Space turnover 2002 (1,000 m2)
Vacancy rate
Yields in prime locations
Madrid
€25/m2
(▼ 21.3%)
€30.5/m2
(▼ 18.1%)
1,450.8 k m2
( ▲ 3.6%)
6.2%
(▲ 1.3%)
6.25%
(▲ 0.3%)
Lisbon
€22/m2
(▼ 2.0%)
€19/m2
( 0.0%)
€18.6/m2
(▼ 11.4%)
105 k m2
(▲ 10.5%)
3.0%
(▲ 1.0%)
7.4%
(▲ 0.4%)
7.2%
(▲ 3.3%)
(
6.0%
0.0%)
▼
▼
440 k m2
(▲ 10.3%)
|7|
Hamburg
€22.5/m2
(▼ 20.0%)
Berlin
€26/m2
(▼ 15.3%)
€13/m2
(▼ 7.1%)
325 k m2
(▼ 15.6%)
4.7%
(▲ 2.5%)
Düsseldorf
€23/m2
▼
( 0.0%)
5.3%
0.0%)
▼
(
395 k m2
(▼ 1.3%)
7.3%
(▲ 0.4%)
5.3%
0.0%)
▼
(
287 k m2
(▼ 24.5%)
Munich
€28/m2
(▼ 7.2%)
7.1%
(▲ 2.7%)
(
5.0%
0.0%)
▼
€16/m2
(▼ 11.1%)
€15/m2
(▼ 7.4%)
435 k m2
(▼ 34.8%)
4.8%
(▲ 2.4%)
490 k m2
(▼ 41.7%)
4.75%
(▲ 3.7%)
▼
4.75%
( 0.0%)
4.75%
(▲ 0.3%)
Milan
€41.7/m2
(▼ 3.0%)
Budapest
€16/m2
(▼ 2.2%)
131.4 k m2
(▼ 15.8%)
€14/m2
(▼ 7.9%)
21%
(▼ 1.9%)
8.75%
(▼ 0.3%)
€21.3/m2
( 0.0%)
▼
153 k m2
(▼ 31.9%)
7.6%
( ▲ 4.2%)
(
5.8%
0.0%)
▼
€13/m2
(▼ 2.3%)
€14.5/m2
( 0.0%)
▼
Frankfurt
€42/m2
(▼ 21.8%)
Source: IVG Immobilien AG / Cushman & Wakefield Healey & Baker, February 2003
|8|
German reunification not only re-elevated the Spree
metropolis to its former status as the German capital, it
also turned it into the country's largest construction site.
Potsdamer Platz – formerly barren no-man's land dividing East and West – has a new lease of life, development
of the Museumsinsel is in full swing and the Stadtschloss is to be rebuilt. Berlin: a city in transition.
Berlin
AMBITIOUS
DYNAMIC
VIBRANT
+++ LEIPZIGER PLATZ RESTORED +++ ONE EMBASSY COMPLETED – ANOTHER UNDER
|9|
Berlin’s Real Estate Market
Berlin is back: as a European metropolis and in the world
average rent of €14.5/m2. Vacancy rates increased only
of real estate. The city is a hive of activity – formerly
slightly by 0.4 percentage points to 7.3%. The city’s
abandoned sites and run-down industrial and warehouse
most popular and most expensive location is the revived
districts are metamorphosing into vibrant, dynamic quar-
and tradition-rich Mitte district, followed by Berlin West
ters that take in Potsdamer Platz, Leipziger Platz, the
around the Kurfürstendamm. To compete with these
Osthafen docklands and Charlottenburg between the
areas, non-central locations must offer something special
Spree river and the Landwehr canal. Although demand
– be near water or have attractive surroundings. Although
for large office properties is lower than elsewhere,
not yet fully established, the area around Berlin’s future
demand for exclusive individual units remains constant.
international airport in Schönefeld to the south is a highly
Consultants, lawyers, auditors, industry associations,
promising location.
embassies, other government-related institutions and
service providers are all rejecting faceless office blocks
in favour of representational premises with that certain
something – like those under construction on Leipziger
Platz. Businesses from the music and TV sectors have
also discovered Berlin, valuing its creative flair and the
opportunity to put their stamp on a stylishly restored
historical building.
Some 395,000 m2 of office space were let in Berlin in
2002, roughly matching the figures for the previous year.
This is mainly thanks to the diverse sectoral mix. Rather
The Leibniz Colonnades, Berlin Stylish office and residen-
than being dominated by the financial and high-tech sec-
tial units close to the Kurfürstendamm: classic and simple
tors, demand comes from a broad range of industries.
designed by the star architect Prof J. Hans Kollhoff.
Berlin was thus able to maintain the previous year’s
Almost 40% of Berlin's
tenancy agreements
still have over 5% of
I V G T E N A N C I E S B Y E X P I RY D AT E ,
BERLIN OFFICE
% of net rental income/year
T O P M O N T H LY R E N T F O R O F F I C E S PA C E ,
B E R L I N € / m2
30.7
their term to run.
28.1
24.5
38.6
23.1
26.5
16.4
5.1
6.6
2005
2006
26.0
23.0
17.9
4Q97 4Q98 4Q99 4Q00 4Q01 4Q02 4Q03e
2003
2004
2007 ff.
Source: IVG/CWHB, data as at February 2003
CONSTRUCTION +++ WORLD'S LEADING MUSIC COMPANY IN SPREESPEICHER +++
| 10 |
Berlin
IVG and Universal Music
Universal Music Group,
the world’s leading
music company, took up
residence in the Spreespeicher.
Bringing new life to historic addresses and buildings
lies at the core of IVG’s strategy for Berlin. IVG currently
has two projects in centrally located Leipziger Platz,
whose resurrection maintains its historical octagonal
form. At Leipziger Platz 9, a premises housing office
Spreespeicher, Berlin
and residential floors along with retail units is due for
Attractive warehouse
completion in mid-2003; IVG has already sold it to an
offices are home
open-end real estate fund. Canada House, the new
to media and creative
Canadian Embassy, is under construction on the oppo-
businesses.
site side of the square. IVG Group company Hannover
Leasing provided the financing model and IVG subsidiary TERCON is the general project contractor. IVG also
laid diplomatic foundations at Dorotheenstrasse near
the Reichstag, restoring the former post office (a listed
building) which later reopened as the Romanian Embassy.
I V G M O N T H LY R E N T S per m2 as at December 2002, B E R L I N O F F I C E
Tenancies with monthly rents from/to
< €5
€5 – 10
€10 – 15
> €15
Rental income
in %
6.8
36.4
31
25.8
Lettable space
in %
30.1
40.8
21.2
7.9
+++ SALZUFER: NEW QUARTER BETWEEN RIVER AND CANAL +++ INTERN
| 11 |
I V G R E A L E S T AT E P O R T F O L I O , B E R L I N O F F I C E
Market value: €360.9 million
Lettable space
1,000 m2
Rental Income
2002 € ,000
Spreespeicher, Stralauer Allee 1–2, Berlin
35.4
853
Carossa Quartier, Streitstrasse 5–19, Berlin
23.4
1,388
Bundesallee 204–206, Berlin
19.2
2,883
Hafenplatz 6/7, Köthener Str. 29, Berlin
16.5
1,486
Leibniz Kolonnaden, Walter-Benjamin-Platz 6, Leibnizstr. 53
12.8
1,589
Airport Center Schönefeld, Mittelstr. 5/5a, Berlin
11.8
2,379
7.4
847
6.7
1,079
Logistik Center Montanstrasse 18–26, Berlin
Joachimstaler Str. 1–3, Berlin
Other
27.9
3,069
161.1
15,573
31.8
2,414
192.9
17,987
Lettable space
1,000 m2
IVG share
%
Total Berlin
IVG Businessp. MicroPolis, Zur Wetterwarte 10, 50, Dresden
Total Berlin Office
IVG PROJECT DEVELOPMENTS, BERLIN OFFICE
Salzufer 6–8
62.1
32
Leipziger Platz 9
9.4
94
Carossa Quartier, Phase 2
8.9
100
Dorotheenstr. 33–37
7.7
50
Niederlehme; Liepnitzenberg (site development)
47
A more upbeat scene is emerging at the Osthafen dock-
Joachimstaler Strasse near the Zoo rail station, and to
lands, where IVG associate Wert-Konzept is restoring
Carossa Quartier, a retail and service centre for the lake-
two historical granaries near the Oberbaum bridge on
side suburb of Spandau.
the Spree river. Universal Music Group, the world’s leading music company, established its German headquar-
Negotiations are still under way on the privatization of
ters in one warehouse in July 2002. The other is home
Berlin’s airport system, with outstanding prospects for
to media and creative businesses. Attractive water loca-
real estate in the surrounding area. In August 2002, a
tions are also a feature of the Quartier am Salzufer com-
consortium led by Hochtief and IVG submitted a bind-
plex in Charlottenburg where, in September 2002, Berlin’s
ing letter of intent to acquire the state-owned Berliner
mayor Klaus Wowereit laid the foundation stone for the
Flughafengesellschaft, which runs Berlin’s airports.
first office building. A new lease of life has also been
given to an office, hotel and commercial building on
ATIONAL AIRPORT: PRIVATIZATION IN PROGRESS +++
| 10 |
London
MAJESTIC
Founded by the Romans more than 2,000 years ago, London is one of
ECCENTRIC
world’s oldest metropolises. Yet the historical capital shows no signs of
COSMOPOLITAN
ageing. On the contrary, it remains uncompromisingly young and has
dynamic allure. The city’s architecture mirrors the historical and the modern: in what is Europe's largest financial district, Victorian façades are
reflected in futuristic glass palaces while sandstone and stainless steel
stand shoulder to shoulder.
+++GRESHAM STREET: SPECTACULAR CITY PREMISES +++ IVG PROJECT
| 13 |
London’s Real
Estate Market
As a world-class city, London holds its own in the real
estate market. There are few cities around the world
where rents are similarly high, and those elsewhere
in Europe are considerably lower. Then again, rents in
London are not as high as they were two years ago
– the average sank by about 13% to €69.8/m2 in 2002.
The situation is slightly different in the City of London
St James’s Street, London
proper. In 2002, an unprecedented number of new office
Banque Nationale de Paris
premises emerged on the market at the same time as
(BNP) and GE Capital are the
many financial businesses were vacating their premises.
tenants of this building.
This resulted in a tangible rise in vacancy rates of 2.6 percentage points to 8.1% at the end of the year. Particularly
affected were premises that were outdated or hard to let
because of their size. Exclusive new premises or fully
While the situation on the Thames was rather more
restored old ones remain popular with tenants. In what
depressed than in other cities, London is expected to
was a difficult year, some 600,000 m2 of office space
recover faster from the dip in the real estate market.
was let in London in 2002.
Experts forecast an increase in rents for 2004 and 2005.
This has attracted numerous large investors to London,
although few real pearls remain to be had in top city
locations. This means good prospects for project developers constructing new premises or giving a new look
to venerable historic buildings.
Long-term tenancies
are characteristic of
IVG's London portfolio.
LONDON OFFICE
T O P M O N T H LY R E N T S F O R O F F I C E
S PA C E I N L O N D O N € / m2
85.8
122.7
93.7
67.0
0.0
2003
7.0
7.2
2004
2005
0.0
2006
110.0
92.9
89.8
69.9
4Q97 4Q98 4Q99 4Q00 4Q01 4Q02 4Q03e
2007 ff.
RECEIVES TWO AWARDS +++ LOMBARD STREET: NEW LOCATION +++
| 14 |
London
IVG and Lloyds TSB Bank Plc.
At an event held in
London's banking district, IVG celebrates its
most significant transaction of 2002: Lloyds
TSB Bank acquired
IVG's city-centre Gresham Street project as
its new headquarters.
In parallel, IVG acquired
the former TSB headquarters in Lombard
Street.
Gresham Street, London
This free-standing building
in London’s banking district
was designed by architect
Nicholas Grimshaw.
I V G M O N T H LY R E N T S per m2 as at December 2002, L O N D O N O F F I C E
< €5
€5 – 10
€10 – 15
> €15
Rental income
in %
0.0
0.0
0.0
100.0
Lettable space
in %
1.8
0.0
0.0
98.2
++ IVG RESTORES HISTORICAL BUILDING NEXT TO BANK OF ENGLAND ++ NEOCLAS
| 15 |
IVG serves both facets of this vibrant city: its fantastic
Conduit Street, London
architectural heritage and its thirst for progress. The latter
Connolly Luxury Goods is
is embodied in the Gresham Street building, completed
a tenant of this office and
in 2002 – transparent hi-tech architecture by Nicholas
commercial premises.
Grimshaw at one of the best city-centre locations, made
especially attractive by rich greenery to the front and in
the lobby. The building received the Considerate Contractors Gold Award along with the Natural Stone Award
2002 for its pleasing blend of glass, steel and traditional
natural stone.
hall with its marble pillars and stairways, and the extravagant interiors of the conference and executive dining
Lloyds TSB Bank purchased the building in March 2002
rooms. All other parts of the building will be fully moder-
and will relocate its headquarters to Gresham Street in
nized.
the course of this year. At the same time, IVG acquired
the bank’s current headquarters in Lombard Street, right
IVG completed restoration of a neoclassical office prem-
next to the Bank of England. This venerable listed build-
ises on Soho Square, a district that is home to the media,
ing dates back to 1930 and epitomizes British building
advertisers and freelancers. The building has two archi-
tradition. In restoring the Lombard Street building, IVG
tectural attractions: its elliptical stairway and a new pent-
plans to maintain the façade, the glass-covered central
house office with a breathtaking panoramic view of the
city – Big Ben and St Paul’s Cathedral included.
I V G R E A L E S T AT E P O R T F O L I O , L O N D O N O F F I C E
Market value: €210,3 million
Lettable space
1,000 m2
Rental Income
2002 € ‘000
71 Lombard Street, London
14.1
1,209
8 Great Marlborough Street, London
10.1
6,258
5.1
3,571
20 St. James’s Street, London
40/41 Conduit Street, London
2.7
1,693
32.0
12,731
Lettable space
1,000 m2
IVG share
in %
Lombard Street, London
17.0
100
Soho Square 20, London
5.6
100
Total London Office
IVG PROJECT DEVELOPMENTS, LONDON OFFICE
SICAL MEETS MEDIA IN SOHO ++ LOFT OFFICES WITH PANORAMIC VIEW ++
| 16 |
Nonchalantly multicultural and highly creative, Brussels is more than just the «capital»
of Europe. The city is an architectural potpourri: intricate art nouveau, straight-lined
classicism, a hint of Baroque, a touch of art
deco and a sprinkling of modern art. As
birthplace of the comic book, the city accommodates all tastes as the mingling aromas of
sweet waffles and Belgian chocolates waft
between historic buildings that stand monument to its great past. Brussels: a city of
many contrasts and facets that hint at both
northern and southern European influence.
Brussels
BOOMING
WHIMSICAL
SURREALIST
+++ MADOU PLAZA RECEIVES NEW SHINE +++ LARGER UNITS – HIGHER
| 17 |
Brussels’ Real
Estate Market
A »European« business address is a must have in Brussels. Quartier Léopold, the city’s most influential EU
district, is booming. As the Community grows, so does
demand for office space. There are few large units still
to be had and competition for even the smaller units is
lively. Compared with the previous year, average rental
income in 2002 increased in increments to an overall rise
of 9% to €15.80. The vacancy rate increased by 1.8 percentage points to 86.1%.
North Gate, Brussels
Many whose search for office space in Quartier Léopold
Belgian ministries have
proves fruitless switch their sights to the nearby city
chosen North Gate as
centre and the area around the North rail station, or to
their representational
Avenue Louise in the south-east of the city and the green
headquarters.
belt in the east. Prices are lower in these areas and
there is greater choice. Prominent potential tenants for
city-centre premises include the Belgian government,
The most problematic office market is outside the city
national and regional companies and the service sectors.
around Zaventem International Airport. Many new build-
With its superbly maintained historic buildings, Avenue
ings have appeared in the area since the 1990s, largely
Louise is particularly popular with the likes of lawyers,
in response to demand from IT and communications
doctors and consultants on the lookout for exclusive
companies. Many units now stand empty, while others
premises. In the eastern green belt, the office market is
are being sublet. Rents have dropped considerably.
characterised by larger, newer buildings and international
tenants. NATO has its headquarters here.
IVG real estate in
Brussels is mainly let to
Belgian ministries and
BRUSSELS OFFICE
T O P M O N T H LY R E N T F O R
O F F I C E S PA C E , B R U S S E L S € /m2
23.0
the EU under long-term
20.8
tenancies.
63.7
18.1
16.9
18.6
19.1
17.0
20.3
9.2
2003
6.2
2004
2005
0.6
2006
4Q97 4Q98 4Q99 4Q00 4Q01 4Q02 4Q03e
2007 ff.
RENTS +++ EU EXPANSION INCREASES DEMAND +++
| 18 |
Brussels
Belgian ministries and EU partners
Le Croissant, Brussels
Modern architecture: a
mix of glass and concrete
with 6,000 m2 lettable
space
As an administrative centre, Brussels plays a key role
comprising offices and a congress centre. When the
in IVG’s strategy for Europe. IVG has around 20 Brussels
new Madou Plaza opens in autumn 2004, the lettable
properties and is one of the largest private real estate
space will have grown by a third – and it is safe to
owners in Belgium. One IVG building in Brussels literally
assume that the rental income from such a radically
towers above all else: the former Madou Tower on the
rejuvenated building will grow accordingly.
inner ring road stands right on the border between the
EU quarter and the city centre. With 32 storeys, it is
Nowhere near as high, but much bigger in terms of floor
not only Brussels’ highest building, it will soon be one
space are four other IVG buildings in Brussels. The North
of the city’s most modern office blocks. The tower was
Gate office complex in Espace Nord houses three Belgian
built in the 1960s and is currently being modernised.
ministries, while the office block on Square de Meeus
Apart from its concrete core and supports, nothing re-
is home to the European Commission. IVG took the op-
mains of the old tower. All floors, ceilings and systems
portunity to sell off four other less central properties at
are to be replaced. The complex will not only shake off
favourable prices in 2002: on Avenue Louise, on Avenue
40 years during the rejuvenation; it will also gain in size:
Léopold III, in the Brussels suburb of Diegem and in
IVG is expanding the usable floor space on existing
Antwerp.
storeys and adding a twelve-storey triangular extension
I V G M O N T H LY R E N T S per m2 as at December 2002, B R U S S E L S O F F I C E
< €5
€5 – 10
€10 – 15
> €15
5.2
18.4
73.4
35.7
25.2
9.4
Rental income
in %
3.0
Lettable space
in %
29.7
+++ THREE BELGIAN MINISTRIES IN NORTH GATE +++ EU WELL-ESTABLISHED
| 19 |
I V G R E A L E S T AT E P O R T F O L I O , B R U S S E L S O F F I C E
Market value: €791.2 million
Lettable space
1,000 m2
Rental Income
2002 € ,000
North Gate, Bd. Roi Albert II, 6, 8, 16, Brussels
56.0
16,205
Square de Meeus 8, Brussels
40.4
9,283
Diegem, Rue Bessenveld 9, Brussels
18.7
2,671
Pléiade A–C, Avenue des Pléiades 11–15–19, Brussels
15.1
1,989
Louise Village, Av. Louise 29–31/Rue Dejonker 34–36, Brussels
12.5
1,797
Tervuren Plaza, Rue Gribaumont 1, Brussels
10.6
1,473
Twin House, Rue Neerveld 105, Brussels
9.3
1,383
Rue de Trèves 59–61, Brussels
9.0
1,516
Sweden House, Rue du Luxembourg 3, Brussels
7.2
1,262
Le Croissant, Av. Beaulieu 24–26, Brussels
6.0
1,580
Place St Lambert, Brussels
4.9
739
Chaussée de la Hulpe 154, Brussels
4.6
577
Oaktree, Dreve de Bonne Odeur 20, Brussels
3.6
606
65.6
5,686
263.5
47,015
15.1
3,615
5.8
1,658
248
Madou Plaza, Brussels
Other
Total Brussels
Ariane I–III, Route d’Esch 400, Luxembourg
Thomas, Rue Thomas Edison 2, Luxembourg
20.9
5,273
284.4
52,288
Lettable space
1,000 m2
IVG share
in %
42.1
100
Total Luxembourg
Total Brussels Office
IVG PROJECT DEVELOPMENTS, BRUSSELS OFFICE
Madou Plaza*, Brussels
* Still let in 2001, vacated for development at end of 2001
Square de Meeus,
Brussels
40,000 m2 fully let to the
European Union
AT SQUARE DE MEEUS +++ SALES AT NON-CENTRAL LOCATIONS +++
| 18
20 |
Lovingly described as »la
capitale«, Paris is the heart of
political, academic, cultural
and economic life in France.
Henry Miller impressively
described his love of Paris
thus: »the streets sing, the
stones talk and the houses
drip history«. Apart from
maintaining its venerable
historic buildings, the city
has retained its legendary
charm to add romance and a
touch of magic to the bustling metropolis.
ROMANTIC
EXCITING
COSMOPOLITAN
Paris
+++ STYLISH HISTORIC BUILDINGS IN THE GOLDEN TRIANGLE +++ PROJECTS WORTH
| 21 |
| 21 |
Paris’ Real Estate
Market
Charming and historically aware on the one hand, ultramodern and international on the other – contrasts abound
throughout the city and are reflected in its real estate
market. Stylish historic buildings dating back to Baron
Haussmann and the Belle Epoque characterize the Golden
Triangle, the city-centre business quarter around the
Champs Elysées and the Arc de Triomphe. Rents rose
dramatically here during the boom years, when all vacant
office units were immediately snapped up at considerably
higher rents. Average rents have since consolidated at
_ 25 – a drop of 21% compared with the previous year.
Top rents lie around _ 58/m2, retaining Paris’ second
place position behind London as Europe’s most expensive office property market. The vacancy rate rose in
Boulevard Haussmann,
2002 by 1.3 percentage points to 6.2%.
Paris
Classical charm in the
Large units, often exceeding 5,000 m2, are still in great
Paris CBD.
demand although there are no units to be had in the
Belle Epoque buildings of the Golden Triangle. Those
looking to rent or buy go elsewhere, often beyond Paris’
quarter near Gare d’Austerlitz. Rents in these areas didn’t
tight city boundary to places like La Défense, a tower-
rocket quite so high during the boom period: despite the
block conurbation in the north-west, to the surrounding
charms of old-town Paris, tenants prefer well-laid out
Croissant d’Or area or to Rive Gauche, a new business
office premises with modern amenities – especially when
they are cheaper and offer better infrastructure and
accessibility.
Paris tenancies due to
expire open new doors.
PA R I S O F F I C E
O F F I C E S PA C E , PA R I S E / m2
56.9
63.5
63.5
58.3
58.3
32.1
44.5
39.4
34.0
2003
1.1
0.8
2004
2005
9.0
4Q97 4Q98 4Q99 4Q00 4Q01 4Q02 4Q03e
2006
2007 ff.
_ 800 MILLION +++ THREE OFFICE BUILDINGS LET PRIOR TO CONSTRUCTION +++
| 22 |
Paris
AXA and IVG – a winning team
I V G M O N T H LY R E N T S per m2 as at December 2002, PA R I S O F F I C E
< E5
E 5 – 10
E 10 – 15
> E 15
Rental income
in %
0.0
0.0
0.0
100.0
Let space
in %
0.0
0.0
0.2
99.8
IVG activities reflect the two faces – old and new – of
Demand for these development projects is great: In Bois-
Paris. The old: IVG owns historic buildings at prominent
Colombes, north-west of central Paris, in Montrouge to
locations like Place Vendôme and Place de la Madeleine,
the south and at Rive Gauche in the south-east, three
Boulevard Haussmann and Avenue Hoche. The new: in
office premises and a retail unit were let before con-
cooperation with AXA Real Estate, IVG develops ultra-
struction even began. The office tenants include globally
modern premises at dynamic locations outside the city
active companies like Palmolive-Colgate from the US,
centre proper. Together with their financing partners, the
Norwich Union from Great Britain and Sanofi-Synthélabo
companies’ overall investment amounts to some _ 800
of France. The highly prestigious Neuilly-sur-Seine district
million with a mix of office and retail units, residential
provides the showcase for another IVG development
units and a logistics park.
project. IVG and AXA Real Estate plan to demolish two
Place Vendôme, Paris
One of Paris’ most attractive squares has retained
its original shape.
+++ NEW DEVELOPMENT IN STYLISH NEUILLY DISTRICT +++ SALES IN A PEAKING
PERISUD, Paris (model)
AXA and IVG are develoutdated buildings built in the 1960s and erect an exclu-
oping over 30,000 m2 of
sive new development on the site. The development is
office space and 2,800 m2
due to be completed in late summer 2004.
of retail space on the city
boundary between Paris
The Paris Oise logistics park is under development at
and Montrouge.
Longeuil-St.-Marie, just outside the city. This strategic
location is well situated for links to Brussels and Cologne
– and for the new Paris International Airport which is
planned for the region.
I V G R E A L E S T AT E P O R T F O L I O , PA R I S O F F I C E
Market value: E 340.4 million
Lettable space
1,000 m2
Rental income
2002 E ,000
7 Place Vendôme, Paris
11.0
6,092
173–175 Bd. Haussmann, Paris
10.6
6,932
121–123 Rue d’Aguesseau, Boulogne Billancourt
9.8
3,199
21 Place de la Madeleine, Paris
2.6
1,535
55 Avenue Hoche, Paris
2.3
1,168
42 Rue de Bassano, Paris
1.5
641
37.9
19,567
Lettable space
1,000 m2
IVG share
in %
PERISUD
33.7
30
Bois Colombes Ilot 6, 7 and 8
14.8
30
M1 H, Avenue de France
12.6
30
Neuilly-sur-Seine
12.5
30
Bois Colombes Ilot 1
9.1
30
Perspective Seine
3.8
14
Total Paris Office
I V G P R O J E C T D E V E L O P M E N T S , PA R I S O F F I C E
MARKET +++ LOGISTICS PARK WITH EXCELLENT PROSPECTS +++
| 24 |
Munich
CHARMING
In its idyllic setting on the Isar river, Bavaria's capital has long estab-
CREATIVE
lished itself as an engine of dynamism. With its high-tech and media sec-
PROGRESSIVE
tors, Munich has become one of Germany's leading business hubs and
one of Europe's biggest industrial centres. But media centres and technology parks have not detracted from Munich’s southern flair: with Italy
practically on the doorstep, such flair remains tangible and underpins
the charm of what has come to be called »Italy’s northernmost city«.
+++ BOSCH EXPANDS IN IVG BUSINESSPARK MUNICH +++ HYDROGENTECHNOLO
| 25 |
Munich’s Real Estate Market
High-tech and creative businesses thrive under Bavaria’s
Nordostpark, Nuremberg
blue and white sky. This is the case not only in the bust-
Modern business campus
ling Munich region, but also in Nuremberg, a tradition-rich
for research and technology.
centre of industry and research.
Munich was also affected by the consolidation of the
technology sectors that hit the real estate market in 2002.
With 490,000 m2 space turnover, new lettings were
some 42% down on the previous boom year. Along with
Frankfurt, Munich remains the uncontested leader in
Germany’s office property market – even though average
rents fell in 2002 by a sharp 7.4% to e 15/m2 and the
vacancy rate rose to 4.8%.
In greatest demand are new buildings with modern amenities, and not just in the city: more than a fifth of all office
units let were outside the city boundaries, often in attractive business parks with more than enough space for further growth. But two acute problems persist: businesses
offices, while at the same time new buildings are now
with surplus space are attempting to sublet their empty
coming onto the market that were a response to the
demand push of previous years. Nevertheless, there are
plenty of tenants looking for good office space in central
locations.
More than 50% of
tenancies in Munich
still have more than
MUNICH OFFICE
O F F I C E S PA C E , M U N I C H E / m2
five years to run.
30.7
53.1
28.6
25.3
22.0
8.3
6.2
30.2
28.0
28.0
25.6
10.3
4Q97 4Q98 4Q99 4Q00 4Q01 4Q02 4Q03e
2003
2004
2005
2006
2007 ff.
GIES: AN ENGINE OF GROWTH +++ PARTIAL SALE OF IVG BUSINESSPARK +++
| 26 |
Munich
IVG and the European Championships
The Eurosport official European Championships party
was held at Pacha, the No. 1 party temple in IVG’s
Businesspark MEDIA WORKS MUNICH. Eurosport
and IVG, the latter acting as both partner and sponsor
to the Athletics After Sports Club, have established
an official meeting place for athletes to retire to when
the games are over for the day.
IVG Businesspark
MEDIA WORKS
MUNICH, Munich
The IVG Businesspark is
home to over 100 businesses, with units tailored
to tenants’ requirements
and a wide range of
leisure activities on offer.
IVG properties in Munich and Nuremberg are home to
service companies which provides advice and support
future-focused businesses and research institutes. Take
to over 30 new businesses. One of its main focuses is
IVG’s Businesspark vor München in Ottobrunn, where a
the promising hydrogen sector.
new 20,000
m2
building has been equipped with sophis-
ticated technical systems by long-term tenants Bosch
Businesses looking for a central Munich location are well
Sicherheitssyteme GmbH.
served at IVG’s Businesspark MEDIA WORKS MUNICH,
with 120,000 m2 lettable space near the Munich East rail
The IVG Businesspark vor München is also home to
station – a key development site in the city. The 20,000 m2
Start-Point, an incubator for startups, technology and
Office Tower at MEDIA WORKS MUNICH was sold to an
I V G M O N T H LY R E N T S per m2 as at December 2002, M U N I C H O F F I C E
Rental income
Let space
< E5
E 5 – 10
E 10 – 15
> E 15
in %
6.0
51.4
38.6
4.0
in %
18.1
53.5
26.7
1.7
+++ OVER 60 COMPANIES IN NORDOSTPARK +++ RESEARCH BUILDING OPENS
| 27 |
I V G R E A L E S T AT E P O R T F O L I O , M U N I C H O F F I C E
Lettable space
1,000 m2
Rental Income
2002 E ,000
Nordostpark Nuremberg, Nordostpark 1–98, Nuremberg
141.7
12,984
MEDIA WORKS MUNICH, Rosenheimer-Strasse, Munich
16.3
568
IVG Businesspark vor München, Einsteinstrasse, Ottobrunn
71.0
7,707
Gewerbepark Dornach, Margaretha-Ley-Ring 1–14, Dornach
29.8
2,859
Puchheim Businesspark, Benzstr. 11, Siemensstr. 4, Puchheim
21.9
2,060
Other
2.9
142
283.6
26,320
Lettable space
1,000 m2
IVG share
in %
Total Munich Office
IVG PROJECT DEVELOPMENTS, MUNICH OFFICE
City Limit Fürth, Waldstrasse, Fürth
21.8
94
New Bosch Telecom building, Ottobrunn
20.5
100
IVG Businesspark
open-ended real estate fund in 2002. Some 90,000
m2
MEDIA WORKS
of MEDIA WORKS MUNICH are subject to a sale-and-
MUNICH, Munich
leaseback arrangement. IVG operates the entire Busi-
Attractive location in
nesspark under a general tenancy agreement and has
close proximity to the
the option to buy back the property in 12 years.
Munich East rail station.
At Nuremberg, the most important event was the completion of a research building in Nuremberg Nordostpark
in June 2002. The most prominent tenants are the Fraunhofer Institute for Integrated Circuits and the University
of Erlangen-Nuremberg Chair of Manufacturing Automation and Production Systems. This boosts the Nordostpark development away from its former industrial
park identity and towards its new one as a high-tech
and research cluster. Nordostpark is now home to over
60 companies.
IN NUREMBERG +++ TENANTS FROM THE WORLD OF SCIENCE +++
| 28 |
Mainhattan was yesterday –
the future is Frankfurt. An air
of refreshing self-confidence
prevails in the German banking capital, a status accorded
to Frankfurt long before the
European Central Bank began
steering EU monetary policy
from its Euro Tower headquarters. A hub of industry, the
city also impresses through
its many contrasts. Located
in the centre of Germany, all
roads lead to Frankfurt: it
houses mainland Europe‘s
largest airport, it lies at the
heart of the ICE high-speed
CONFIDENT
rail network and near some
EUROPEAN
of
the
country’s
busiest
REFRESHING
motorway intersections.
Frankfurt
+++ AIRRAIL TAKES OFF AT AIRPORT +++ IVG HOUSES WORLD'S BEST AIRPORT
| 29 |
Frankfurt’s Real
Estate Market
Frankfurt’s towers and its office rents have one thing in
common: both are by far the highest in Germany. But
dynamic locations are not necessarily immune to dips
in the market: less space was let and lower rents were
generated in 2002 than in the boom years that preceded
it. Compared with 2001, average rents dropped by 11%
to _ 16/m2. The vacancy rate doubled from a low 2.4% to
4.8%. Two sets of circumstances are to blame: sectoral
problems among key potential tenants from the financial
and IT industries, and a surplus of new space to let. Top
city-centre locations were heavily affected as were those
AIRRAIL, Frankfurt (model)
in the adjoining West End district.
The avant-garde complex sits
atop the ICE high-speed rail
terminal.
Frankfurt is nevertheless expected soon to regain its former dynamism. It is and will always be one of Europe’s
most important financial and logistics centres and can
always be relied upon to create new demand for modern
office premises. This is especially good news for locations that are particularly accessible, both in terms of
Over 40% of all new tenancies in 2002 involved such
longer distances and within the city of Frankfurt itself.
locations. Frankfurt Airport offers the best connections
by far, and is easily reachable by road and rail. Apart
from office units, warehouses are also in great demand:
Frankfurt Airport is Europe’s largest air cargo transit centre
and the logistics sector is booming at its Cargo City South.
Two-thirds of tenancies
in Frankfurt run until
2007 and beyond.
F R A N K F U RT O F F I C E
O F F I C E S PA C E , F R A N K F U RT E / m2
53.7
62.4
46.0
40.9
34.1
15.6
9.8
38.0
9.1
3.1
2003
35.8
42.0
2004
2005
2006
4Q97 4Q98 4Q99 4Q00 4Q01 4Q02 4Q03e
2007 ff.
HOTEL +++ TENANCY AGREEMENTS SIGNED FOUR YEARS AHEAD OF OPENING
| 30 |
Frankfurt
IVG’s airport properties
Frankfurt Airport’s Cargo City South is turning into
a freight and logistics magnet. In the company of
Hesse’s State Premier Roland Koch, IVG subsidiary
TERCON held a topping out ceremony on 16 October
for IVG’s Airbizz building, a logistics and office building with a sprawling 30,000 m2 of lettable space.
Airbizz, Frankfurt
70% of space at the modern freight
and logistics centre was already let
prior to the topping out ceremony.
I V G M O N T H LY R E N T S per m2 as at December 2002, F R A N K F U R T O F F I C E
< E5
E 5 – E 10
E 10 – E 15
> E 15
Rental income
in %
41.5
50.0
8.5
0.0
Lettable space
in %
58.4
38.4
3.2
0.0
+++ AIRBIZZ: ULTRA-MODERN FREIGHT AND LOGISTICS CENTRE +++ LUFT
| 31 |
I V G R E A L E S T AT E P O R T F O L I O , F R A N K F U R T O F F I C E
Lettable space
1,000 m2
Rental Income
2002 E ,000
11.7
1,220
9.1
867
Total Frankfurt
20.8
2,087
Logistics centre Lohfelden, Otto-Hahn-Str. 26, 28, 34, 36, KS
25.7
1,821
Logistics centre Waldau, Falderbaumstr. 7–13, KS-Waldau
22.2
1,061
Other
72.3
3,526
Total Kassel
120.2
6,408
Total Frankfurt Office
141.0
8,495
Logistics centre, Cargo City South bldg. 554, Frankfurt Airport
Center am Ring, Otto-von-Guericke-Ring 13–15, Wiesbaden
Airbizz, Cargo City South bldg. 555, Frankfurt Airport
IVG PROJECT DEVELOPMENTS, FRANKFURT OFFICE
Lettable space
1,000 m2
IVG share
in %
116.0
31
Airbizz, Cargo City South bldg. 555, Frankfurt Airport
29.9
94
ComConCenter, Goldsteinstr. 235, Frankfurt
16.1
48
AIRRAIL, Frankfurt Airport building
IVG’s strategy for Frankfurt is mobility-based and focuses
October 2002. Some 70% of the office units had already
on highly accessible locations. In November 2002, pre-
been let prior to the ceremony – mostly to airport oper-
parations began at the Airport to build one of the most
ator Fraport AG. On completion, the Airbizz development
spectacular properties in Europe: the 660 metre long
will become part of IVG’s real estate portfolio.
Frankfurt AIRRAIL centre atop the new ICE high-speed
rail terminal. Like a spider, it hovers in a web of flight
Accessibility is also the keyword for IVG’s third Frankfurt
paths, railway lines and motorways. Due for completion
project: the ComConCenter office complex in Niederrad,
in May 2006, some 40% of its space has already been
an office district situated between the city centre and the
let; tenants include French Le Méridien group, which
airport, with good connections to Frankfurt’s motorway net-
plans to create the world’s best airport hotel in the avant-
work. The first construction phase is to be completed in
garde building. The complex will also provide office units
2003; tenants include a company from the Lufthansa group.
for mobility-reliant businesses along with restaurants,
shops and parking space for some 1,000 vehicles.
Mobile businesses also make up IVG’s customer base in
Kassel, North Hesse. Six companies have signed tenancy
IVG’s activities at Frankfurt Airport are not only focused
agreements for IVG’s highly accessible warehouses and
on passenger comfort. An exclusive property is being
office units at Lohfelden and Waldau. Tenants include
developed for freight and logistics management. With an
software training schools and suppliers of office furniture
office building and a logistics warehouse, IVG’s Airbizz
and equipment, electrical goods, glass insulation, and
complex at Cargo City South celebrated its topping out in
building materials.
HANSA SUBSIDIARY NEW TENANT IN COMCONCENTER +++
| 32 |
ELEGANT
RESOURCEFUL
PROGRESSIVE
Booming Milan
An industrial hub, fashion centre and
offers a chance of
MILAN OFFICE
attractive rent
media capital – hardly any other city
67.6
increases in 2006.
so ably embodies both big business
19.0
8.7
and zest for life. Known for its style
and dynamism, Milan is considered
4.7
0.0
2003
2004
2005
2006
2007 ff.
T O P M O N T H LY R E N T F O R O F F I C E
S PA C E , M I L A N E / m2
Italy’s most cosmopolitan and industrious city and is favoured over Rome
43.0
41.7
41.3
32.3
by many Italians. The longstanding
19.7
21.5
23.7
rivalry between the two cities is cap4Q97 4Q98 4Q99 4Q00 4Q01 4Q02 4Q03e
tured by the Italian saying, »Milano
produce soldi, Roma li spende«: the
money might be spent in Rome, but it
Via Carducci, Milan
is earned in Milan.
A business ensemble between the cathedral and the Monza motor racing circuit.
+++ IVG IN THE MARKET SINCE 1999 +++ CITY CENTRE OFFICE BUILDING ACQ
| 33 |
Milan
I V G M O N T H LY R E N T S per m2 as at December 2002, M I L A N O F F I C E
< E5
E 5 – E 10
E 10 – E 15
> E 15
Rental income
in %
0.0
31.0
61.4
7.6
Lettable space
in %
0.0
37.3
57.9
4.8
Crisis, what crisis? The euro has made Italy’s leading in-
IVG has been in the Milan market since 1999. In the
dustrial city even more attractive for domestic and foreign
ensuing years it has purchased eight office and retail
firms alike. At
_ 21.3/m2,
average rents have remained
buildings at six different locations. The latest acquisition
stable compared with the previous year and the compara-
is a building on Piazzale Lodi in the south-east of the
tively high top rents have fallen only marginally. Office
city centre whose 20,800 m2 of space is fully let to the
space in the Italian industrial capital remains scarce and
Alstom power and engineering group. In a joint venture
sought-after. The 7% vacancy rate mainly relates to older
with Italy’s Pasini, IVG has developed the Centro Marelli
units. Particularly desirable properties are large and self-
in Sesto San Giovanni, an upcoming location for office
enclosed with excellent amenities and a good location,
real estate. The development was sold before comple-
either in the middle of town or accessibly situated in one
tion to a German open-ended real estate fund in Decem-
of the outlying centres. Milan is also becoming increas-
ber 2002.
ingly attractive as an investment location for internationals. Once firmly in local hands, the city has become an
open market.
I V G R E A L E S T AT E P O R T F O L I O , M I L A N O F F I C E
Lettable space
1,000 m2
Rental Income
2002 E ,000
Piazzale Lodi 3, Milan
20.8
1,987
Palazzi Fermi & Galeno, Milan
15.8
1,920
Via Carducci 125, Sesto San Giovanni, Milan
10.3
1,183
Via Dione Cassio 13, Milan
9.2
880
Via Cascia 5, Milan
5.4
553
Via Gobetti 2, Cernusco sul Naviglio
5.1
694
Palazzo dei Cigni, Milan
2.7
506
69.3
7,723
Lettable space
1,000 m2
IVG share
in %
16.5
45
Total Milan Office
IVG PROJECT DEVELOPMENTS, MILAN OFFICE
Centro Marelli
UIRED ON PIAZZALE LODI +++ CENTRO MARELLI SOLD TO OPEN-ENDED FUND
| 34 |
ORIGINAL
LIVELY
AMBITIOUS
A fresh breeze blowing through the
Düsseldorf is chic – which is why it attracts office tenants who set great store by modern surroundings and a
heart of Europe's largest conurbation
prestige address. New buildings on prime sites remained
heavily enough in demand for rents to remain largely
has long carried off the dust of gener-
stable during 2002, with the average rent slipping only
2.3% to _ 13/m2. As in other cities, demand from the
ations past, and Düsseldorf has long
communications, media and banking sectors was down
on the year before, but this was partly compensated
ceased to be merely an administrative
by trade, industry and other services. Vacancies were
concentrated in low-priced, outdated buildings, with the
centre for the industrial Ruhr district.
vacancy rate increasing 2.7 percentage points to 7.1%.
Düsseldorf's discerning tenants prefer to pay a premium
Without detracting from its famous
for more recent buildings that meet higher standards.
charm, the multimedia age has come
to the city on the Rhine. Futuristic,
In terms of time
cater-cornered buildings reach for the
left to run, Düsseldorf tenancies are
skies as the most visible manifesta-
DÜSSELDORF OFFICE
evenly distributed
over the coming
tion of this new trend. Düsseldorf
30.6
25.0
years.
20.7
12.3
11.4
today is a lively, harmonious blend of
past, present and future.
2003
2004
2005
2006
2007 ff.
O F F I C E S PA C E , D Ü S S E L D O R F E /m2
23.0
23.0
23.0
23.0
22.0
20.5
18.9
4Q97 4Q98 4Q99 4Q00 4Q01 4Q02 4Q03e
+++ GLOBAL GATE: FIRST PHASE SOLD, SECOND UNDER CONSTRUCTION +++ AIR
| 35 |
Düsseldorf
I V G M O N T H LY R E N T S per m2 as at December 2002, DÜSSELDORF OFFICE
< E5
E 5 – E 10
E 10 – E 15
> E 15
Rental income
in %
2.5
9.1
77.5
10.9
Let space
in %
6.6
12.9
73.3
7.2
IVG is tapping into the demand for top-quality new real
ago and Allianz Immobilien GmbH renting 4,200 m2 of
estate – for example with Global Gate, an ultra-modern
office space for its Düsseldorf regional management.
office complex on Grafenberger Allee. The first of three
IVG has plans in the drawer for four further buildings at
phases is complete and fully let, and has been sold to
the IVG Businesspark am Flughafen. How quickly they
an open-ended real estate fund. The second will be
will be built depends on demand.
completed in July 2003, and a company in the TUI group
has already signed up as the first tenant. IVG’s Businesspark am Flughafen combines a similarly modern setting
with optimum accessibility to transport routes. This fully
let development has become increasingly popular among
investors, with Barmenia Lebensversicherung AG acquiring a fully let building that was completed two years
Global Gate, Düsseldorf
Location for successful
I V G R E A L E S T AT E P O R T F O L I O , D Ü S S E L D O R F O F F I C E
business: Telekom, TUI
Lettable space
1,000 m2
Rental Income
2002 E ,000
IVG Businesspark am Flughafen, Düsseldorf
45.9
7,799
brokers Oskar Schunk
Gotic-Haus, Westfalendamm 94–100, Dortmund
have chosen Global Gate.
23.6
2,530
Stockholmer Allee 32, Dortmund
6.7
944
Fashion Plaza, Karl-Arnold-Platz 2, Düsseldorf
6.4
1,409
Global Gate, Grafenberger Allee 293–297, Düsseldorf
Other
Total Düsseldorf Office
and international insurance
723
9.4
976
92.0
14,381
IVG PROJECT DEVELOPMENTS, DÜSSELDORF OFFICE
Global Gate, Phase 2; Grafenberger Allee, Düsseldorf
Zanderstrasse 5, modernization, Bonn
Lettable space
1,000 m2
Anteil IVG
in %
12.6
100
5.5
100
PORT BUSINESSPARK: NEW LOCATION FOR INSURANCE COMPANIES +++
| 36 |
EXHILARATING
DIVERSE
EBULLIENT
With its five million-plus population,
Madrid
In the late 1990s, rents in Madrid doubled in just three
years. 2002 was a year of consolidation, with average
pulsatingly busy old-town streets,
rents slipping 11.4% to _ 18.6/m2. The previously lively
demand petered out at a time when project developers
sweeping boulevards and grand
were bringing numerous new buildings onto the market.
This produced a sharp rise in the vacancy rate, from
avenues, Madrid leaves little time for
3.3% at the end of 2001 to 7.2% at the end of 2002.
This trend will continue in more moderate form in 2003,
the sedate Hispanic way of life. Yet
and the Madrid market is set to gain in stability in the
medium term.
despite the hectic pace and the heat, it
IVG has been active in Spain since 1998. Among other
is hard to resist this multifaceted blend
properties, IVG owns two logistics and distribution centres
in the San Sebastián de los Reyes office and commer-
of the provincial and the metropolitan.
cial district. Rents on these were re-secured in 2002
IVG’s portfolio in
Contrast Lisbon: the white city on the
Madrid and Lisbon:
secure long-term
sea, uniting Brazilian temperament
MADRID/LISBON
81.0
tenancies and market revival in the
and Iberian noblesse, grand futuristic
architecture and nostalgic flair.
medium term.
12.0
2003
2.8
0.0
4.2
2004
2005
2006
2007 ff.
S PA C E , M A D R I D / L I S B O N E /m2
39.1
30.5
27.0
19.4
16.4
19.5
22.4
21.4
20.5
37.3
29.0
Madrid
21.0
Lisbon
22.0
19.5
4Q97 4Q98 4Q99 4Q00 4Q01 4Q02 4Q03e
+++ CONSOLIDATED MARKETS +++ GOOD PROSPECTS IN COSLADA +++ INTERNATIO
| 37 |
/Lisbon
under tenancy agreements signed with international com-
the Tejo river. Investors and tenants are increasingly
panies. The sites offer long-term scope for redevelopment
setting their sights on the Expo area with its avant-
with office buildings – as does the site of a 2002 acquisi-
garde architecture.
tion at Coslada near Madrid Barajas International Airport,
where IVG bought two logistics buildings with attractive
Stability is also IVG’s motto with its properties at top
development potential.
locations in Lisbon. One of these is the Omni building
on the centrally situated Avenida Duque d’Ávila. Tenants
The word that characterizes the Lisbon market at the
include major internationals; personnel consultants Egon
moment is stabilization. Rents remained stable, having
Zehnder have an office and Gerling insurance group an
approached central European standards over the fore-
»agência geral« for property and loan insurance. New
going years. Average rents likewise remained stable in
tenants Uría & Menéndez are a globally operating law
2002 compared with the previous year, at _ 19/m2. The
firm. Another IVG property is an office building on the
vacancy rate was less than 3%, and space turnover
1998 Expo site. Featuring a distinctive elliptical corner
even rose 10% to 105,000
m2.
Most new lettings were
tower, the building is let in its entirety to the Portuguese
in the main office locations: the »service city« to the
subsidiary of the Sony group. The property has won two
north of the old town, where high-quality units are in
awards: »best development project« and »best office
particularly short supply, and the former Expo site by
building« in Portugal.
I V G M O N T H LY R E N T S per m2 as at December 2002, M A D R I D / L I S B O N
< E5
E 5 – E 10
E 10 – E 15
> E 15
Rental income
in %
23.3
15.2
23.9
37.7
Lettable space
in %
45.8
21.7
15.2
17.3
I V G R E A L E S T AT E P O R T F O L I O , M A D R I D / L I S B O N
Lettable space
1,000 m2
Rental Income
2002 E ,000
Logistics centre Coslada, Av. Jos de Garate 7–9, Madrid
24.7
497
San Esteve de Sesrovires, Barcelona
16.6
758
Calle Fuerteventura 9, Madrid
11.6
655
Calle Santiago de Compostela Sur, Madrid
10.3
1,637
Calle Isla de la Palma, Madrid
Total Madrid
SONY-Building, Rua Tomás da Fonseca, Lisbon
3.4
242
66.6
3,789
6.6
1,268
The Sony group
Sony, Lisbon
5.1
1,260
has occupied this
Total Lisbon
11.7
2,528
unusual new build-
Total Madrid/Lisbon
78.3
6,317
ing since 2000.
OMNI-Building, Avenida Duque d’Avila 141, Lisbon
NAL CITY CENTRE TENANTS +++ TWO AWARDS FOR EXPO BUILDING +++
| 38 |
IVG Businesspark Hamburg Nord, Hamburg
The pharmaceutical company Eli Lilly has been located in
UNDERSTATED
these attractive premises since 1999.
DISTINGUISHED
ELEGANT
More than in almost any other major
city, life in Hamburg is shaped by
proximity to water. Featuring one of
Europe’s biggest sea ports, Hamburg
A comparatively cool wind blew on the Hamburg real
estate market in 2002. Average rents dropped sharply by
is not just a gateway to the world.
7.1% to _ 13/m2, while the vacancy rate rose 2.5 percentage points to 4.7%. Most new lettings involved high-
With its inner and outer Alster lakes
quality properties, the most sought-after of which have
good technical amenities, are well laid out and, increas-
and innumerable canals it is also the
ingly, feature interesting and exclusive architecture.
»Venice of the North«, and it will come
As elsewhere, 75%
as little surprise that Hamburg has
of tenancy agree-
HAMBURG OFFICE
ments in Hamburg
more bridges than the Italian original.
still have more than
74.6
five years to run,
Inspired by the Hanseatic merchant
ensuring stable cash
flows.
spirit and turn-of-the-century nostalgia, this city of warehouses – once the
16.5
1.9
2.2
4.8
2003
2004
2005
2006
2007 ff.
biggest storage complex in the world
S PA C E , H A M B U R G
– is simultaneously a panorama of
E / m2
28.1
historic buildings and home to the
24.5
25.6
22.5
ultra-modern HafenCity development
scheme.
19.2
19.4
20.5
4Q97 4Q98 4Q99 4Q00 4Q01 4Q02 4Q03e
+++ ATTRACTIVE AIRPORT UNITS +++ CITY PROPERTY SOLD PRIOR TO CONST
| 39 |
Hamburg
I V G M O N T H LY R E N T S per m2 as at December 2002, H A M B U R G O F F I C E
< E5
E 5 – E 10
E 10 – E 15
> E 15
53.3
38.0
0.0
42.7
17.6
0.0
Rental income
in %
8.7
Lettable space
in %
39.7
IVG owns IVG Businesspark Hamburg Nord near Fuhls-
At Etzel, near Wilhelmshaven, IVG operates an approxi-
büttel Airport. The Businesspark is fully let and develop-
mately 17 million m3 subterranean complex of caverns
ment of an additional building is planned. On Glocken-
used for storing natural gas and crude oil. IVG owns six
gießerwall in the city centre, IVG has now completed a
such caverns – underground real estate – that it lets to
building that changed hands even before construction
German and Dutch bodies responsible for maintaining
had begun. A modern office building is to be erected on
strategic oil reserves. 33 further caverns belong to the
the site of an old multi-storey car park on neighbouring
German federal government and have now been in IVG
Ferdinandstrasse.
management for 30 years.
I V G R E A L E S T AT E P O R T F O L I O , H A M B U R G O F F I C E
I N C L U D I N G C AV E R N S A N D T A N K F A R M Market value: E 255.3 million
Lettable space
1,000 m2
Rental Income
2002 E ,000
IVG Businesspark Hamburg Nord, Essener Str. 89–99, HH
49.5
4,992
Lilienthal-Center, Kugelfangtrift 4–8/Lilienthalstr. 300, H
21.6
1,033
6.7
862
17.3
171
95.1
7,058
Habichtstrasse, Habichtstrasse 41, HH
Other
Total Hamburg
Tank farm
Friedeburg, oil caverns, Beim Postweg 2
Friedeburg, gas caverns, Beim Postweg 3
Total caverns/tank farm
274.5 *
12,800.0 *
4,500.0 *
17,574.5
Total Hamburg Office
24,773
31,831
* in 1,000 cubic metres
Habichtstrasse, Hamburg
IVG PROJECT DEVELOPMENTS, HAMBURG OFFICE
Lilienthal-Center, Hanover
Glockengießerwall, Hamburg
Site development, Glinde
Mirrored façades and
Lettable space
1,000 m2
IVG share
in %
14.3
100
3.0
100
dynamic lines epitomize
successful business.
100
RUCTION +++ MODERN OFFICE BUILDING IN PLANNING PROCESS +++
| 40 |
HISTORICAL
Budap
ALLURING
CULTIVATED
A strikingly picturesque location on
Despite a spate of new developments that led to falling
rents and high vacancy rates in the late 1990s, demand
the
Danube,
imposing
turn-of-
for premium properties such as tastefully restored historical buildings remained strong among companies seeking
the-century
architecture
and
the
prestige accommodation. Hungary’s coming accession to
the EU will probably spark greater interest in accessibly
Hungarian zest for life come together
situated modern buildings. However, high levels of construction activity in 2002 led to a 21% vacancy rate, with
to earn Budapest its reputation as the
average rents falling by 7.9% to _ 14/m2.
»Paris of the East«. Eight bridges con-
Budapest is IVG’s most important location in the EU accession states. In 1998, IVG began developing Infopark,
nect the ancient Buda with the more
a business and innovation park near Budapest University of
Technology and Economics on the banks of the Danube.
youthful Pest to form a lively city of
Two more buildings were completed in 2002: a service
centre with office space that can be let in small units
two million inhabitants. Budapest
and, by way of contrast, a building that is to be occupied
by two main tenants – Hungary’s leading Internet service
blends old and new, art
and kitsch, industrious-
I V G M O N T H LY R E N T S per m2 as at December 2002, B U D A P E S T O F F I C E
ness and laissez-faire
< 5E
E 5 – E 10
E 10 – E 15
> E 15
Rental income
in %
1.2
0.0
49.5
49.3
Lettable space
in %
4.5
0.0
52.5
43.0
together with a generous helping of magic
and just a touch of nos-
I V G R E A L E S TAT E P O RT F O L I O , B U D A P E S T O F F I C E Market value: E 43.6 million
Lettable space
1,000 m2
Rental Income
2002 E ,000
17.2
128
7.6
815
24.8
943
Lettable space
1,000 m2
IVG Share
in %
18.8
100
Infopark Budapest, sétány 1 and 3, Budapest
Other
talgia.
Total Budapest Office
IVG PROJECT DEVELOPMENTS, BUDAPEST OFFICE
Infopark buildings B and I
Gisella Mill, site development
100
+++ MAJOR TENANTS IN INFOPARK +++ ARCHITECTURAL JEWELS ON ANDRÁSSY
| 41 |
est
Andrássy út 12,
Poland
Budapest
provider Axelero and the Hewlett Packard
Andrássy út, an
Poland’s diverse and highly promising real estate
computer group.
attractive boule-
market has grown from almost nothing over the
vard in the centre
last decade. The turbulence of the 1990s has been
IVG architectural highlights include the
of Budapest,
overcome and, particularly with the country now
restored buildings from the second half
features many
set to join the EU in May 2004, all the signs point
of the 19th century on Andrássy út, the
stylishly restored
to healthy, lasting growth. Numerous Polish cities
city’s main boulevard. The most note-
historic buildings
and market segments offer outstanding oppor-
worthy new tenant is the Hungarian in-
of IVG.
tunities: the upswing has brought rising demand
vestment and trade development agency
throughout the country for property developments
ITD Hungary.
serving business, industry and the population at
large – shopping centres and logistics facilities
being prime examples.
BUDAPEST OFFICE
This strong demand was illustrated in October
2002 by the great public interest in the opening
90.1
of Galeria Lodzka, the most attractive shopping
centre in Lodz, Poland’s second largest city. The
41,000 m2 metres of retail space was fully let
two months before the opening day. The shopping centre now features in the first German
2.1
3.1
0.0
4.7
2003
2004
2005
2006
closed-end real estate fund to hold a property
2007 ff.
in Poland. Galeria Lodzka was the second Polish
project to be carried out jointly by IVG, ECE Group
New tenancies can be signed for five
years or longer.
(Europe’s largest operator of shopping centres),
and Deutsche Bank subsidiary DB Real Estate.
The same consortium previously developed Galeria Dominikanska in Wroclaw.
S PA C E , B U D A P E S T E / m2
A further IVG project in Poland came into operation at the end of 2001: the Silesia tank farm
19.2
near by Katowice. This state-of-the-art facility
19.9
18.9
turns around some _ 1 billion-worth of petrol
16.9
16.4
16.0
16.0
every year. Customers include petroleum groups
BP, Shell, Statoil, Ceská Rafinérská and Slova-
4Q97 4Q98 4Q99 4Q00 4Q01 4Q02 4Q03e
kia’s Slovnaft.
ÚT +++ LÓDZ: SHOPPING CENTRE OPENED +++ TANK FARM NEAR BY KATOWICE
4
EUROPE AT ITS BEST – A TOUR
OF EUROPE‘S MAJOR CITIES
ComConCenter,
Frankfurt
IVG Businesspark
MEDIA WORKS
MUNICH, Munich
Leibniz Kolonnaden,
Berlin
p.
p.
p.
p.
p.
p.
p.
p.
p.
p.
p.
p.
p.
6
8
12
16
20
24
28
32
34
36
38
40
41
Sweden House,
Brussels
Square de Meeus,
Brussels
IVG LOCATIONS IN EUROPE
BERLIN
LONDON
BRUSSELS
PARIS
MUNICH
FRANKFURT
MILAN
DÜSSELDORF
MADRID/LISBON
HAMBURG
BUDAPEST
POLAND
Conte
| 43 |
44
74
IVG PROFILE
FINANCIAL PERFORMANCE
IVG Businesspark am
Flughafen, Düsseldorf
Global Gate,
Düsseldorf
p. 44 LETTER TO OUR SHAREHOLDERS
p. 74 SHARES
p. 48 STRATEGY AND VALUE MANAGEMENT
p. 83 EPRA
p. 54 OUR BUSINESS
p. 88 CORPORATE GOVERNANCE
p. 56 PORTFOLIO MANAGEMENT
p. 90 GROUP MANAGEMENT REPORT
p. 62 REAL ESTATE PORTFOLIO
p. 100 GROUP FINANCIAL STATEMENTS
p. 66 PROJECT DEVELOPMENT
p. 107 NOTES
p. 72 FUNDS
p. 124 REPORT OF THE SUPERVISORY BOARD
p. 129 AUDITORS’ REPORT
nts
p. 130 SUMMARY OF MAJOR SHAREHOLDINGS
p. 134 SUPERVISORY BOARD / BOARD OF
MANAGEMENT, ADVISORY COMMITTEE
p. 138 FINANCIAL CALENDAR
CONTENTS
Infopark,
Budapest
| 44 |
Dear shareholders
and friends of the company,
IVG held its steady course despite the vagaries of the economic climate. Group total
operating performance, which includes gains on property sales, increased by 31.1% to
€637.8 million. Operating earnings rose by 13.8% to €188.7 million and net income
by 3.4% to €70.4 million. Along with a solid letting business, profits gained through
real estate disposals and project development revenues were essential sources of earnings. We will be proposing a dividend of €0.34 per share for approval at the Annual
General Meeting.
PORTFOLIO MANAGEMENT: ACQUISITIONS IN MILAN AND MADRID,
MAJOR SALES IN BRUSSELS AND MUNICH
At the end of 2002, our real estate portfolio was worth €3.2 billion. Consolidated rental
income in 2002 was €244.4 million. The real estate portfolio, a strong generator of cash
flow, is the solid foundation underlying our business model. We optimized this basis
continuously through acquisitions and disposals.
Two prize IVG acquisitions in 2002 tap into the strong potential of the Milan real estate
market and capitalize on demand for logistics space at Madrid International Airport.
The first, a building on Piazzale Lodi just outside Milan’s city centre, contains 20,800 m2
of office space and is fully let. The second, a logistics centre at Madrid/Coslada within easy reach of Madrid Barajas International Airport, has 24,700 m2 of usable space
and offers considerable scope for development.
2002 saw major disposals in Munich and Brussels. The first of these was the sale to
an open-end fund of the Office Tower, a building with a gross floor area of 20,000 m2
in the IVG Businesspark MEDIA WORKS MUNICH. Most of the remaining space in the
Munich business park – a former factory site that has been transformed into a services
hub in a highly successful upgrading project – has now been placed in a sale-and-leaseback arrangement, enabling us to profit from further development of the site without
tying up capital. In the year’s second major strategic disposal we trimmed our exposure
on the Brussels market by selling a real estate package comprising Tour Léopold in Rue
de Genève and the Président building in Avenue Louise. We also made other, smaller
sales both in Germany and abroad. As in previous years, the proceeds from sales made
in 2002 exceeded the market value of the properties concerned.
PROJECT DEVELOPMENT: PROPERTIES CHANGE HANDS IN
LONDON’S BANKING DISTRICT AND DÜSSELDORF, MAJOR
PROJECTS PRE-LET IN PARIS AND FRANKFURT
One of IVG’s most significant transactions of 2002 took place in London’s banking district. Lloyds TSB, a major international bank, acquired our 10,000 m2 Gresham Street development for their new corporate headquarters. In exchange, IVG was able to purchase
the bank’s former Lombard Street headquarters at a competitive price. This 14,000 m2
building is outstandingly situated next door to the Bank of England and offers excellent
scope for development. In Düsseldorf, our early involvement has paid off at Grafenberger Allee, where the first, 11,000-plus m2 construction phase of Global Gate has been
completed, fully let, and sold to an open-end real estate fund. The second phase is now
under construction.
In Paris, our project development joint venture with AXA has pre-let 100% – over
85,000 m2 – of the first four projects currently under construction. This made IVG/AXA
one of the French capital’s most successful letters of property in 2002.
With Europe’s major airports increasingly becoming centres of economic growth, their
environs are a particularly attractive real estate location for IVG. Last August, a consortium led by IVG and Hochtief signed a letter of intent for the Berlin Brandenburg International (BBI) airport project. A decision is anticipated in 2003. The area surrounding
BBI offers considerable development potential for office, hotel and logistics space.
A 35,000 m2 section of the AIRRAIL Center Frankfurt project at Frankfurt Airport was
let before construction commenced to Le Méridien, a major international hotel chain.
IVG EUROPEAN FUNDS: ADDED OPENINGS FOR INVESTORS
Fund investors, too, will soon be able to profit even more from IVG’s highly successful
investment strategy and the accumulated expertise of its branch offices in Europe’s
leading property markets. In 2003 we will be working together with our subsidiary WertKonzept to put together plans for closed-end real estate funds that will allow private
investors to tap into IVG’s professional real estate resources over the duration of a fixedterm investment. We have already marketed two-thirds (€30 million) of the equity capital
of the current fund, which owns properties in Bonn and Frankfurt. In addition, we have
LETTER TO
OUR SHAREHOLDERS
| 45 |
| 46 |
founded a capital investment company to provide institutional investors such as pension funds and insurance companies with a means of taking stakes in specialist openend IVG funds that are eligible as premium reserve fund investments. Approval for
this activity – which comes under the regulatory oversight of BaFin, Germany’s Federal
Financial Supervisory Authority – came in March 2003.
IVG SHARES: MARKET VALUATION DOES NOT ADEQUATELY
REFLECT THE FUNDAMENTALS
We are not satisfied with the performance of IVG shares. The decline in our share
price stood in marked contrast to the fundamental data of IVG. We are confident that
this will once again be borne out in the price of IVG shares. Even financial analysts
see attractive share price potential for IVG shares.
BEST ANNUAL REPORT 2001:
TRANSPARENCY FOR THE FINANCIAL MARKET
Transparency for the financial market is something we take seriously. This is indicated
by the fact that with our 2001 Annual Report, we became the recipients of the first
European Public Real Estate Association (EPRA) award for the best annual report by a
listed public European real estate company. This shows that IVG’s market information
activities stand out in professionalism and detail not just within Germany, but on a
broader European comparison as well. We will continue to do everything to ensure
transparency in our data.
CORPORATE GOVERNANCE: ENHANCED TRANSPARENCY AND CONTROL
We have a strong and sustained commitment to good, transparent corporate governance – a topic of key importance to the capital markets. We ensure that our company is
managed and monitored in a responsible manner, geared to creating value and to fostering confidence among investors, employees, business associates and the general public. We welcome the German Corporate Governance Code that has been drawn up and
issued by the »Cromme Commission«. Most of the Code’s elements have been integral
to our value-oriented corporate policies for some years. In September 2002, IVG also
became a founder member of a corporate governance organization for the German real
estate industry, »Initiative Corporate Governance der deutschen Immobilienwirtschaft
LETTER TO
OUR SHAREHOLDERS
Dr Dirk Matthey, Dr Eckart John von Freyend and Dr Bernd Kottmann
e.V.« Under the chairmanship of Dr Eckart John von Freyend, this organization is drawing up corporate governance principles specifically for real estate companies which go
beyond those recommended in the Cromme Commission’s Code.
TEAMWORK: COMMITMENT AND MOTIVATION ARE
THE FOUNDATION OF OUR SUCCESS
More than almost any other sector, real estate is an interdisciplinary business. For this
reason we attach special importance to nurturing a highly qualified workforce with
strong teamworking abilities. IVG’s pleasing performance is due in no small part to the
professional and committed hard work of our employees, to whom we extend our
warm thanks and recognition. Raising the earning power and value of your company is
a challenge which all at IVG will continue to meet with motivation and tenacity. Working
as a team, we will make the most of Europe’s great opportunities.
Yours sincerely,
Eckart John von Freyend
Bernd Kottmann
Dirk Matthey
Strategy
and Value Management
North Gate, Brussels
STRATEGY AND
VALUE MANAGMENT
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| 50 |
Strategy and value management
Sustained value growth is the guiding principle of IVG’s
Letting and portfolio development:
strategy. As a result, IVG has developed from a nationally
The backbone of our business
oriented conglomerate to a quoted European real estate
The true value of real estate is measured not in bricks
company that offers its shareholders long-term growth in
and mortar, but by the quality of the tenancy portfolio.
value founded on a strong asset base. The key elements
Tenants with immaculate financial standing, strong loyalty
of the IVG business model are as follows:
and the right mix of terms to renewal are critical to maintaining a stable flow of earnings. The European Commis-
• Concentration on office properties, business parks and
logistics real estate in Europe’s main centres.
• Letting to prestigious tenants from the public, private
and research sectors.
• Continuous upgrading and ongoing development of
assets within the real estate portfolio.
• Active portfolio management, both for IVG-owned
properties and on contract.
sion, Universal Music and Fraunhofer Gesellschaft are
just three examples of the many prestigious tenants
from the public, private and research sectors who we
provide with real estate solutions. Within market constraints, we set the duration of tenancy agreements to
take best advantage of local growth prospects and to fit
in with the term structure of the portfolio as a whole. By
upgrading and ongoing development, we continuously
• Project development for IVG and for third parties.
adapt IVG real estate assets to changing market needs.
• Maintaining our own branch office network for close
This fosters tenant loyalty and enables us to recruit new
proximity to markets.
tenants from growth industries. Projects such as IVG’s
• Centralized investment, strategy and risk management.
Businesspark MEDIA WORKS MUNICH and Madou
• Broad access to the capital market through stock mar-
Plaza in Brussels are outstanding examples. IVG was
kets, banks and fund capital.
• Lean, efficient structure.
one of the first in the industry to introduce systematic
customer loyalty management for business clients.
Portfolio management: The art of timing
Project development: Yield leverage for IVG
Astute buying and selling is a further key source of earn-
IVG develops new high-yield locations on newly acquired
ings. We obtain attractive purchase prices by acquiring
and portfolio sites. Project development is an activity
and restructuring major portfolios. This can be carried out
with a strong element of enterprise and provides sub-
either by buying properties on the open market (asset
stantial extra earnings leverage for a quoted real estate
deals) or by corporate acquisitions (share deals) – an ex-
company such as our own. Our strict controlling system
ample of the latter being the takeover of Asticus, a listed
ensures that IVG development projects closely follow
public real estate company. We additionally make use of
market needs. Accordingly, we also aim to achieve a
cyclical differences between the various European real
high level of pre-letting in such projects. Large projects
estate markets, for example by immediately following up
are undertaken in cooperation with highly reputable part-
a sale in a mature market with an acquisition in a prom-
ners. This allows us to engage in more complex projects
ising location elsewhere. For example, particularly pro-
that offer correspondingly strong earnings opportunities
nounced cyclical differences in rent trends have existed
while requiring a lesser commitment of resources.
between the London and Milan markets in recent years,
and we have exploited this to make sales in London
while building up our Milan portfolio.
Place de la Madeleine,
Paris
This elegant office property
has been in IVG ownership
since 1997.
STRATEGY AND
VALUE MANAGEMENT
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| 52 |
Global investment, strategy and risk management:
system enables us to manage the capital risk exposure in
A necessary adjunct to flexibility in local markets
real estate ownership. We aim to achieve further growth
We secure lasting increases in our return on capital em-
and critical mass in the regions where IVG already has
ployed by requiring specific minimum rates of return
branch offices. This allows us to make particularly effect-
when committing funds. In portfolio business, we require
ive use of our risk-minimizing combination of local market
a cash flow return on investment (CFROI) of between
expertise with global management capabilities.
5% and 10% depending on the nature of the investment.
We aim for a yield of between 10% and 20% in develop-
Broad access to capital markets: A precondition for
ment projects. Through our activities in various segments
growth in a changing market environment
of the real estate market we create sustained sources
Investments compete today in the risk/returns stakes
of earnings that are cyclically offset to produce a stable
across sectoral and national borders. As a capital-inten-
cash flow overall, thus keeping down the cost of capital.
sive industry, real estate is also affected by the new
Basle II regulatory framework of capital adequacy stand-
Success in the real estate business is achieved by com-
ards in banking. Financing further growth is thus one
bining detailed local market knowledge with a global
of the greatest challenges facing any capital-intensive
management strategy. Our strength lies in systematically
business. In our eyes, IVG is well placed to meet this
dovetailing these two components. Our strict controlling
challenge.
»Our recipe for success is ›Act professionally and decide fast‹.
All real estate assets undergo thorough analysis and every
market is carefully assessed along with its potential.«
| 53 |
»€5 billion in real estate assets
under management, €3.2 billion of
this in our own portfolio, and performance to be proud of. By exploiting real estate cycles in Europe, we
The current average rate of interest on capital borrowed
generate sustained, stable cash and
by IVG is well below the rate of return on our portfolio;
income flows. In doing so, we pro-
aim to use the entire range of available sources of finance.
vide our investors with a sound
Accordingly, IVG sets up closed-end real estate funds
base for accumulating wealth in the
through its subsidiaries and, for institutional investors,
long term, and in particular a means
plans to issue open-end real estate funds incorporated
under the German Investment Companies Act (KAGG).
to make provision for old age.«
Lean structure: Organization is not an end in itself
Generating profitable growth with demanding customers
requires creativity, flexibility and transparency. We accordingly set great store by paying far more than just lip service to the idea of the continuously learning business
organization. The road from a national conglomerate to
our position today among the top fifteen quoted real
estate companies in Europe has been marked by constant change and adaptation to new market challenges.
IVG’s structure today is a flat hierarchy that combines
the considerable operational flexibility of our European
branch offices with support services from cross-sectional
headquarters functions.
Sweden House,
Brussels
In 2001, IVG acquired
this modern property
with international tenants
including Microsoft.
STRATEGY AND
VALUE MANAGEMENT
debt finance thus helps to create value. We nevertheless
Our Business
IVG Businesspark MEDIA WORKS MUNICH, Munich
OUR BUSINESS
| 55 |
| 56 |
Portfolio management
IVG’s objective in portfolio management is lasting yield
Portfolio management activities are performed both cen-
and value growth across the portfolio. Three strategic
trally and locally. Investment, divestment and the asso-
instruments serve this end:
ciated financing decisions are made centrally, as are
• Constant focus on quality in construction develop-
decisions regarding substantial modernization projects
ment within the portfolio. Active customer relationship
within the real estate portfolio. At local level, we draw
management is combined with additional pull factors
upon the market knowledge of our branch offices. These
like the IVG Value Service to recruit and support ten-
perform local property management, carry out modern-
ants and boost tenant loyalty.
ization work, ensure that properties are re-let and look
• Active buy-and-sell strategy: We acquire properties
after tenants. Optimizing our assets in this way, our
that offer good prospects for value growth, large devel-
branch offices also have a regional network that furnishes
opment reserves or sustained high returns. In parallel,
IVG with attractive real estate investment and disposal
we dispose of properties on complementary markets
opportunities.
where little further value growth is expected or where
Over the past year, we continued perfecting our organiz-
price levels are high.
• Portfolio consolidation and upgrading: IVG currently
owns development reserves comprising 835,000
m2
ational structure and became leaner and more efficient
in the process. Our domestic and foreign branch offices
of gross floor area. We erect new buildings on hitherto
now report directly to the Board of Management. This
unused or little-used sites and upgrade existing pro-
ensures that the branch offices are fully in line with IVG’s
perties by modernization or rededication (for example
corporate goals and that all decisions with a local ele-
from industrial to office use).
ment are taken in close touch with the relevant market.
I V G M O N T H LY R E N T S per m2 as at December 2002, T O T A L
< €5
€5 – €10
€10 – €15
> €15
Rental income
in %
5.4
24.0
25.3
45.3
Lettable space
in %
24.6
36.1
23.8
15.5
| 57 |
Gotic-Haus, Dortmund
Gotic-Haus comprises
two buildings on Dortmund’s Westfalendamm,
part of an arterial road
through the Ruhr region.
IVG’s quality strategy concentrates on well-appointed,
architecturally attractive properties in good locations.
We focus on two types of location:
• City-centre addresses in European growth centres
such as Place Vendôme and Place de la Madeleine in
Paris, or St James’s Street in London.
• Accessibly situated locations with good transport
links in conurbations, with the emphasis on locations
close to airports. Examples include the IVG Businesspark am Flughafen in Düsseldorf, Nordostpark in NuremBusinesspark MicroPolis in Dresden, Airbizz Center
Frankfurt, and the Coslada logistics centre near Madrid.
Outstanding local and long-distance transport links are
also a feature of locations such as IVG Businesspark
vor München in Ottobrunn, Lilienthal Center in Hanover,
Gotic-Haus in Dortmund, Gewerbe Gebiet Glinde near
Hamburg, Businesspark Kassel-Lohfelden, and many
others.
IVG developments also reap synergies by encouraging
cluster formation among companies and institutions in
the same or similar sectors. Such clusters include the
music and media sector at the Spreespeicher in Berlin
and IVG Businesspark MEDIA WORKS MUNICH, and
technology and communications firms at Nordostpark
(Nuremberg), IVG Businesspark vor München (Ottobrunn), and Infopark Budapest. Other examples are the
institutions and companies clustered around the EU
in Brussels’ Quartier Léopold, and air freight logistics
companies at Frankfurt Airport’s Cargo City South.
PORTFOLIO
MANAGEMENT
berg, the IVG Businesspark Hamburg Nord, the IVG
| 58 |
Bosch Sicherheitssysteme
GmbH, IVG Businesspark
vor München
A hub of innovation, Munich
will see radical change over
the next few years.
Disposals in the 2002 financial year:
• Parts of IVG Businesspark MEDIA WORKS MUNICH
(110,000 m2), to an open-end and a closed-end real
estate fund.
• The first construction phase of Global Gate, Düsseldorf
(11,000 m2), to an open-end real estate fund.
• Two office properties (26,000-plus m2) and a plot of
land in Brussels.
• An office building in Antwerp (20,800 m2).
Upgrading of portfolio properties
IVG continued with its upgrading strategy in the 2002
financial year, further developing properties already in
the portfolio, modernizing buildings, redeveloping built
sites and developing unbuilt ones. Over €200 million
was invested in work of this kind over the course of
the year. Projects included:
• Completion of two office and service buildings at
Infopark, Budapest (17,200 m2).
Buy-and-sell strategy
• Completion of production and office buildings at IVG
In our active portfolio management strategy, we tap into
Businesspark vor München for Bosch Sicherheits-
market cycles and emerging opportunities to rearrange
systeme GmbH (20,500 m2).
our real estate portfolio on an ongoing basis. We buy as
• Completion of a research building (with approximately
markets begin to rise or when a good opportunity pre-
9,000 m2) and a further office building (approximately
sents itself, and exploit periods of high prices and good
5,500 m2) at Nordostpark, Nuremberg.
sale opportunities to make disposals. Cyclical differences
between markets allow us to coordinate investment and
• Completion of the extension to the Gotic-Haus office
complex, Dortmund (6,500 m2).
disinvestment at different locations.
Tenancies and customer relationship management
Acquisitions in the 2002 financial year:
IVG focuses first and foremost on its tenants. Increasing
• A fully let city-centre office building on Piazzale Lodi,
the value of IVG real estate is not only a matter of exploit-
Milan (20,800
m2).
• Two logistics properties at Coslada, near Madrid
Barajas International Airport (24,700 m2).
• The Airbizz freight logistics centre with logistics and
office units in Frankfurt Airport’s Cargo City South
(30,000 m2).
ing development reserves, modernizing and upgrading
properties within the portfolio, and lucrative buying and
selling. It also involves achieving high levels of customer
satisfaction. IVG is one of the first real estate companies
| 59 |
in Germany to have taken a systematic approach to cus-
A selection of new tenancies in the 2002 financial year:
tomer relationship management. Tenant surveys bear out
the success of this strategy.
• German headquarters of Universal Music in the Spreespeicher, Berlin.
and services from top-ranking companies at preferential
rates: office furniture, supplies and equipment, telecommunications and mobile telephony, hotel accommodation,
• Allianz Immobilien GmbH at the IVG Businesspark am
Flughafen, Düsseldorf.
• Bosch Sicherheitssysteme GmbH at IVG Businesspark
vor München, Ottobrunn.
consultancy services in communication, finance, organiz-
• Abbott GmbH & Co in the Center am Ring, Wiesbaden.
ational and legal matters – to name but a few. Tenants
• Canon, and Hilti in the Lilienthal Center, Hanover.
outside Germany receive full, personal service from the
• Fraport AG in Airbizz, Frankfurt Airport.
IVG branch offices. These efforts bore fruit in the 2002
• Fraunhofer Institute for Integrated Circuits and the
financial year, with new tenants signing up on recom-
University of Erlangen-Nuremberg Chair of Manu-
mendation from existing ones and the few who moved
facturing Automation and Production Systems in
away soon being replaced under new tenancy agree-
Nordostpark, Nuremberg.
ments. On expiry of their contracts, many opted to ex-
• Hewlett Packard and Axelero in Infopark, Budapest.
tend their term with IVG – in some cases by as much as
• Lufthansa Gebäudemanagement GmbH in the
ten years.
ComConCenter in Frankfurt.
• Paper makers Sappi in the Chaussée de la Hulpe build-
Our annual survey of tenants proves that IVG’s strict
customer focus pays off: Customer satisfaction improved by a marked 38% over the period from 1999
to 2002.
ing in Brussels.
• Bridgestone in the San Sebastián de los Reyes logistics
building in Madrid.
• Retailers Alcampo in the La Vaguada shopping centre
in Madrid.
A total of more than 120,000 m2 of space was let in
2002.
IVG Businesspark MEDIA
WORKS MUNICH, Munich
With its attractive loft offices,
this campus near the Munich
East rail station has become
a key media location.
PORTFOLIO
MANAGEMENT
As part of the IVG Value Service, tenants can obtain goods
| 60 |
Caverns, Etzel
IVG’s largest storage facility
is near Wilhelmshaven.
Logistics real estate
Logistics real estate forms the third pillar of our portfolio,
alongside office properties and business parks. IVG lets
storage space for petroleum, petroleum products and
natural gas in caverns and tank farms – what we refer
to as underground real estate. The tenants are companies in the energy sector and bodies responsible for
maintaining strategic oil reserves. The largest storage
facility operated by IVG is the Etzel caverns facility near
Wilhelmshaven. This offers subterranean storage for
some 13 million cubic metres of petroleum and approximately 500 million standard cubic metres of working
gas. The stored fuels represent a significant contribution
towards securing the German and Dutch energy supply.
In addition, IVG operates seven tank farms with a total
capacity of some 800,000 cubic metres. The oil and gas
storage facilities in Germany are owned partly by the
German government and partly by IVG. A further tank
farm has been in operation since the end of 2001 in
Katowice, an industrial centre in south-western Poland.
Used by petroleum companies such as BP, Shell, Statoil,
I V G T E N A N C I E S B Y E X P I RY D AT E
TOP 10 TENANTS
% of net rent/year
Net rent,%
58.3
16.4
8.6
2003
2004
7.1
2005
9.6
2006
2007 ff.
Nat./int. oil/gas storage (HAM)
9.1
Régie des Bâtiments (BRU)
8.2
European Union (BRU)
4.0
Lucent Technologie (NUE)
3.6
Thales (PAR)
3.1
Vattenfall (SWE)
2.8
Turner Broadcasting (LON)
2.6
Nokia (DUS)
2.1
EPCOS (MUC)
1.8
PwC (LUX)
1.6
| 61 |
Ceská Rafinérská and Slovnaft as a supply base for their
The year under review saw major sales in Munich and
networks of filling stations, the tank farm was operating
Brussels. After successfully upgrading a former industrial
at full capacity in 2002. Work on extending the tank farm
site to create a modern services hub in the form of the
began at the end of 2002.
IVG Businesspark MEDIA WORKS MUNICH, IVG sold a
20,000 m2 portion of the development known as the
Office Tower.
Business performance
management over the course of 2002 by acquiring high-
We have placed the majority of the remaining space in
quality properties in Madrid, Milan and Frankfurt. At the
the IVG Businesspark MEDIA WORKS MUNICH in a sale-
same time we successfully exploited cyclic differences
and-leaseback arrangement. This allows us to profit
between the various European real estate markets to
from further development of the site without tying up
realize attractive profits on property sales. Turnover rose
capital. As planned, we have reduced our exposure in
by 4.9% over the previous year to €282.7 million. This
Brussels with the sale of a real estate package compris-
increase is primarily attributable to higher rental income:
ing the buildings in Rue de Genève (Tour Léopold) and
net rental income rose to €244.4 million overall and to
Avenue Louise (Président). Sales this year once again
€132.0 million in Germany. The latter figure reflects the
exceeded market value.
positive influence of development projects conducted
within the portfolio in Munich and Nuremberg over recent
years. Rental income outside Germany was below the
figure for the previous year as a result of property sales
in 2002 and the scheduled vacation of the Madou Plaza
office tower in Brussels.
Infopark, Budapest
Central Europe’s most
modern technology park is
being developed immediately adjacent to the University of Technology and
Economics.
PORTFOLIO
MANAGEMENT
We broadened the base for future earnings in portfolio
| 62 |
T A B L E O F T H E R E A L E S T AT E P O R T F O L I O A S AT 3 1 D E C E M B E R 2 0 0 2
IVG share
Form of
ownership
Date added/last
refurbished
Type of use
Site area
Lettable w/o
parking
1,000 m2
1,000 m2
12.7
241.7
7.5
12.0
9.8
14.0
44.2
1.8
257.2
600.9
192.0
792.9
35.4
23.4
19.2
16.5
12.8
11.8
7.4
6.7
27.9
161.1
31.8
192.9
9.4
10.9
19.8
8.1
7.6
6.5
4.1
1.6
1.2
4.4
2.0
3.5
4.7
2.8
32.6
119.2
9.5
6.4
15.9
135.1
56.0
40.4
18.7
15.1
12.5
10.6
9.3
9.0
7.2
6.0
4.9
4.6
3.6
65.6
263.5
15.1
5.8
20.9
284.4
Berlin
Spreespeicher, Stralauer Allee 1–2, Berlin
Carossa Quartier, Streitstrasse 5–19, Berlin 3
Bundesallee 204–206, Berlin
Hafenplatz 6/7, Köthener Str. 29, Berlin
Leibniz Kolonnaden, Walter-Benjamin-Pl. 6, Leibnizstr. 53, Berlin 1, 2
Airport Center Schönefeld, Mittelstrasse 5/5a, Berlin
Montanstrasse 18–26, Berlin
Joachimstaler Str. 1–3, Berlin
Other
Berlin total
IVG Businessp. MicroPolis, Zur Wetterwarte 10 and 50, Dresden
Berlin Office total
89%
100%
95%
95%
50%
100%
100%
98%
Leasehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
1995/2002
1948/2002
1998
1998
1996/2001
1997/2001
1948
2000/2002
Offices
Offices
Offices
Other
Offices
Offices
Logistics
Offices
100%
Freehold
1992/93/2001
Business park
100%
100%
94%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
1998
1999
1998/2001
1999
1999
1999
1999
1999
2001
1999
1999
1999
1999
1999/2002
Offices
Offices
Offices
Offices
Other
Offices
Offices
Offices
Offices
Offices
Offices
Offices
Offices
Offices
Brussels
North Gate, Bd. Roi Albert II, 6, 8 and 16, Brussels
Square de Meuus 8, Brussels
Diegem, Rue Bessenveld 9, Brussels
Pléiade A–C, Avenue des Pléiades 11–15–19, Brussels
Louise Village, Avenue Louise 29–31/Rue Dejonker 34–36, Brussels
Tervuren Plaza, Rue Gribaumont 1, Brussels
Twin House, Rue Neerveld 105, Brussels
Rue de Trèves 59–61, Brussels
Sweden House, Rue du Luxembourg 3, Brussels
Le Croissant, Avenue Beaulieu 24–26, Brussels
Place St Lambert, Brussels
Chaussée de la Hulpe 154, Brussels
Oaktree, Dreve de Bonne Odeur 20, Brussels
Madou Plaza, Brussels 3
Other
Brussels total
Ariane I-III, Route d’Esch 400, Luxembourg
Thomas, Rue Thomas Edison 2, Luxembourg
Luxembourg total
Brussels Office total
94%
100%
Freehold
Freehold
Freehold
1999
1999
1999
Offices
Offices
Offices
100%
Leasehold
2002
Business park
3.7
1.9
5.6
17.2
7.6
24.8
100%
100%
100%
100%
100%
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
1999
1995/2001
2001
1998
1985/2002
Business park
Offices
Offices
Offices
Offices
70.7
13.3
7.3
1.7
16.2
59.0
168.2
45.9
23.6
6.7
6.4
100%
100%
99%
Leasehold
Freehold
Leasehold
1997–1999
1993/2002
2002
Logistics
Offices
Logistics
11.7
9.1
100%
100%
Freehold
Freehold
1983/2001
1948/2000
Logistics
Logistics
17.7
9.8
35.7
342.5
405.7
75.8
91.0
42,527.9
42,694.7
43,100.4
20.8
25.7
22.2
72.3
120.2
141.0
100%
Freehold
2001
Offices
2.8
13.1
Budapest
Infopark Budapest, sétány 1 and 3, Budapest
Other
Budapest Office total
1, 4
Düsseldorf
IVG Businesspark am Flughafen, Heltorfer Str. 1–22, Düsseldorf
Gotic-Haus, Westfalendamm 94–100, Düsseldorf
Stockholmer Allee 32, Dortmund
Fashion Plaza, Karl-Arnold-Platz 2, Düsseldorf
Global Gate, Grafenberger Allee 293–297, Düsseldorf 3
Other
Düsseldorf Office total
9.4
92.0
Frankfurt
Logistics centre, Cargo City Süd, Geb. 554, Frankfurt-Flughafen
Center am Ring, Otto-von-Guericke-Ring 13–15, Wiesbaden
Airbizz, Cargo City Süd, Geb. 555, Frankfurt-Flughafen 3
Other
Frankfurt total
Logistics centre Lohfelden, Otto-Hahn-Str. 26, 28, 34, 36, Lohfelden
Logistics centre Waldau, Falderbaumstrasse 7–13, Kassel-Waldau
Other
Kassel total
Frankfurt Office total
Geneva
Office property, Rue de Lausanne 80–82, Geneva
5
In-building
parking
Occupancy rate
Let as at 31 Dec.
Occupancy rate
over year Jan.-Dec.
Development
potential
Market value
Investment
2002
Rental income 2002 1
Rental income
forecast 2003 1
Cash flow
2002
Operating earnings 2002 (EBIT)
Spaces
%
%
1,000 m2 GFA
€ ,000
€ ,000
€ ,000
€ ,000
€ ,000
€ ,000
170
166
1,320
6
1,326
66%
98%
100%
97%
82%
30%
100%
95%
94%
84%
80%
83%
54%
75%
100%
99%
77%
100%
100%
84%
94%
84%
86%
84%
995
491
421
270
207
178
103
87
55
205
68
72
81
100%
100%
95%
78%
86%
9%
73%
87%
94%
100%
91%
100%
30%
100%
99%
95%
74%
86%
61%
76%
88%
88%
100%
91%
78%
97%
2,401
5,634
273
249
522
6,156
98%
91%
100%
100%
100%
91%
97%
93%
100%
100%
100%
93%
48
54%
83%
54%
57%
64%
60%
66
99%
75%
100%
98%
99%
75%
100%
98%
109
982
96%
93%
97%
92%
214
100%
46%
100%
56%
2
2
216
100%
76%
100%
63%
96%
88%
89%
100%
77%
100%
88%
94%
95%
90%
228
89%
88%
291
250
296
147
48
394
413
214
1,457
7,948
255
182.0
13.0
18.0
10.0
10.0
233.0
23.9
256.9
328,912
32,032
360,944
34
4
292
18,584
28,574
1,352
29,926
745
-825
2,368
1,061
1,218
568
739
957
4,557
11,388
1,761
13,149
-1,338
-978
2,012
1,061
1,218
83
706
423
3,910
7,097
1,138
8,235
17,248
9,283
2,912
1,887
1,833
151
1,399
1,516
1,308
1,593
757
630
185
5,515
46,217
3,688
1,658
5,346
51,563
15,381
7,467
2,584
1,695
941
1,021
1,317
1,621
843
1,600
577
280
628
-58
3,561
39,458
3,412
1,625
5,037
44,495
13,322
5,629
2,057
1,276
648
681
984
1,387
451
1,345
449
156
537
-162
2,565
31,325
2,616
1,371
3,987
35,312
717,187
8,768
874
10,453
74,030
791,217
10,453
43,582
12,855
1,609
14,464
128
815
943
1,252
1,318
2,570
1
458
459
-8
217
209
226,893
356
1,655
1
18
20,437
5,121
27,588
7,799
2,530
944
1,409
723
976
14,381
5,457
2,984
937
1,423
577
1,365
12,743
5,678
1,689
993
1,202
111
322
9,995
4,342
1,142
956
1,190
-55
43
7,618
1,220
867
1,220
1,275
2,810
2,087
1,821
1,061
3,526
6,408
8,495
5,305
1,798
982
3,543
6,323
11,628
814
395
-467
-20
722
1,694
866
2,811
5,371
6,093
735
376
-621
-1,151
-661
1,463
739
2,323
4,525
3,864
3,092
3,737
2,669
2,669
38
65
58
75
101
36.0
347
18,004
50,348
5.3
18.0
4.5
27.8
27.8
3,334
1,560
2,883
1,374
1,388
2,438
847
2,085
2,942
18,851
2,157
21,008
16,205
9,283
2,671
1,989
1,797
1,473
1,383
1,516
1,262
1,580
739
577
606
248
5,686
47,015
3,615
1,658
5,273
52,288
348
126
13.5
22.4
71.9
853
1,388
2,883
1,486
1,589
2,379
847
1,079
3,069
15,573
2,414
17,987
89,043
139,391
49,133
18,351
183
145
537
865
19,216
REAL ESTATE
PORTFOLIO
| 63 |
| 64 |
T A B L E O F T H E R E A L E S T AT E P O R T F O L I O A S AT 3 1 D E C E M B E R 2 0 0 2
IVG share
Form of
ownership
Date added/last
refurbished
Type of use
Site area
Lettable w/o
parking
1,000m2
1,000 m2
Hamburg
IVG Businesspark Hamburg Nord, Essener Str. 89–99, Hamburg
Lilienthal-Center, Kugelfangtrift 4–8/Lilienthalstr. 300, Hanover
Habichtstrasse, Habichtstrasse 41, Hamburg
Other
Hamburg total
Tank storage 7
Friedeburg, oil caverns, Beim Postweg
Friedeburg, gas caverns, Beim Postweg 3
Cavern/tank storage total 7
Hamburg Office total
100%
100%
100%
Freehold
Freehold
Freehold
1948/2001
1948/1980/2002
1991/1995
Business park
Logistics
Offices
100%
100%
100%
Fhld./Rental
Freehold 8)
Freehold 8)
1962/2002
1972/1998
1993/1998
Logistics
Logistics
Logistics
133.7
54.1
3.0
65.9
256.7
49.5
21.6
6.7
17.3
95.1
274.5
12,800.0
4,500.0
17,574.5
256.7
London
71 Lombard Street, London
18 Great Marlborough Street, London
20 St James’s Street, London
40/41 Conduit Street, London
London Office total
100%
100%
100%
100%
Freehold
Freehold
Leasehold
Leasehold
2002
1999
1999
1999
Offices
Offices
Offices
Offices
2.4
1.6
0.8
0.7
5.5
14.1
10.1
5.1
2.7
32.0
94%
94%
94%
94%
94%
Freehold
Freehold
Freehold
Freehold
Freehold
2002
1998
1998
2000
1998
Logistics
Logistics
Logistics
Offices
Logistics
94%
94%
Freehold
Freehold
2000
2000
Offices
Offices
24.5
25.0
17.2
9.1
6.6
82.4
3.9
2.6
6.5
88.9
24.7
16.6
11.6
10.3
3.4
66.6
6.6
5.1
11.7
78.3
100%
94%
94%
94%
94%
100%
94%
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
2002
2000
1999
1999
2000
2001
2000
Offices
Offices
Offices
Offices
Offices
Offices
Retail
6.0
5.9
1.5
7.0
2.4
4.7
4.8
32.3
20.8
15.8
10.3
9.2
5.4
5.1
2.7
69.3
100%
100%
100%
100%
95%
Freehold
Freehold
Freehold
Freehold
Freehold
1948/2002
1948/2001
1960/2000
1974/2001
1977
Business park
Business park
Business park
Commercial
Comm./logistics
268.2
21.6
811.1
30.7
43.7
26.2
1,201.5
141.7
16.3
71.0
29.8
21.9
2.9
283.6
100%
100%
94%
100%
100%
100%
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
1999/2002
1997
2000
1997
1999
1999
Offices
Offices
Offices
Offices
Offices
Offices
2.5
1.6
3.0
0.8
0.6
0.4
8.9
11.0
10.6
9.8
2.6
2.3
1.5
37.9
100%
Freehold
2001
Offices
86.2
45,885.0
81.3
1,425.7
Madrid/Lisbon
Logistics centre Coslada, Avenida José de Garate 7–9, Madrid
San Esteve de Sesrovires, Barcelona
Calle Fuerteventura 9, Madrid
Calle Santiago de Compostela Sur, Madrid
Calle Isla de la Palma, Madrid
Madrid total
SONY Building, Rua Tomás da Fonseca, Lisbon
OMNI Building, Avenida Duque d’Ávila 141, Lisbon
Lisbon total
Madrid/Lisbon total
Milan
Piazzale Lodi 3, Milan
Palazzi Fermi & Galeno, Milano 3
Via Carducci 125, Sesto San Giovanni, Milan
Via Dione Cassio 13, Milan
Via Cascia 5, Milan
Via Gobetti 2, Cernusco sul Naviglio
Palazzo dei Cigni, Milano 3
Milan Office total
Munich
Nordostpark Nuremberg, Nordostpark 1–98, Nuremberg
MEDIA WORKS MUNICH, Rosenheimer Strasse, Munich
IVG Businesspark vor München, Einsteinstrasse, Ottobrunn
Gewerbepark Dornach, Margaretha-Ley-Ring 1–14, Dornach
Businesspark Puchheim, Benzstr. 11, Siemensstr. 4, Puchheim
Other
Munich Office total
Paris
7 Place Vendôme, Paris
173–175 Bd. Haussmann, Paris
121–123 Rue d’Aguesseau, Boulogne Billancourt
21 Place de la Madeleine, Paris
55 Avenue Hoche, Paris
42 Rue de Bassano, Paris
Paris Office total
Stockholm
Vattenfallet Buildings, Jamtlandsgatan 99, Stockholm
All markets total
1
4
2
5
Non-consolidated/preliminary
IVG share of value in euros stated
3 Space (partly) in development
Near completion
Beneficial ownership: mortgage-secured loan
9
9
9
9
| 65 |
Occupancy rate
Let as at 31 Dec
Occupancy rate
over year Jan.-Dec.
Development
potential
Market value
Investment
2002
Rental income 2002 1
Rental income
forecast 2003 1
Spaces
%
%
1,000 m2 GFA
€ ,000
€ ,000
€ ,000
€ ,000
326
8
124
458
100%
88%
86%
100%
97%
458
97%
100%
96%
96%
100%
99%
90%
100%
100%
2
17
100%
100%
82%
100%
97%
100%
100%
100%
100%
100%
148
96
244
244
57%
100%
100%
100%
100%
84%
100%
100%
100%
87%
84%
100%
100%
100%
100%
98%
100%
93%
96%
97%
100%
100%
93%
100%
100%
100%
100%
99%
100%
100%
96%
100%
100%
100%
100%
99%
2,853
91%
98%
99%
100%
100%
100%
96%
92%
98%
99%
100%
100%
100%
96%
205
197
33
18
14
467
100%
100%
100%
93%
100%
100%
100%
100%
100%
100%
98%
100%
100%
100%
813
14,337
100%
93%
100%
94%
15
175
136
53
165
529
1,446
969
8
430
6
7
75.0
20.0
1,576
4,100
4
95.0
105,257
95.0
150,000
255,257
5,680
7
2,598
8,278
21,000
210,322
21,000
12,349
55,650
12,349
36,630
92,280
12,349
35,953
27
123,210
35,980
6,735
223
20,738
377
100.0
52.0
200.0
19.0
12.0
383.0
459,159
28,073
404
834.6
4,992
1,033
862
171
7,058
7
24,773
31,831
7
25,100
31,952
€ ,000
€ ,000
4,225
319
617
120
5,281
7
19,707
24,988
3,190
76
466
-13
3,719
7
15,127
18,846
1,209
6,258
3,571
1,693
12,731
917
5,790
3,301
1,725
11,733
1,192
5,358
3,015
1,388
10,953
1,120
4,590
1,917
1,047
8,674
497
758
655
1,637
242
3,789
1,268
1,260
2,528
6,317
1,005
781
681
1,825
242
4,534
1,312
1,375
2,687
7,221
363
619
521
1,513
197
3,213
1,154
806
1,960
5,173
320
488
422
1,211
156
2,597
940
597
1,537
4,134
1,987
1,920
1,183
880
553
694
506
7,723
2,627
1,953
1,225
884
563
698
506
8,456
1,701
1,120
1,115
807
344
585
303
5,975
1,387
831
941
699
240
484
229
4,811
12,984
568
7,707
2,859
2,060
142
26,320
13,120
576
8,328
2,862
2,098
142
27,126
8,599
354
5,357
2,049
2,131
110
18,600
6,545
114
4,614
1,861
1,443
108
14,685
6,370
7,078
3,150
1,680
1,200
732
20,210
6,283
6,548
2,641
1,339
1,065
719
18,595
5,920
5,591
2,072
-1,579
970
656
13,630
7,615
217,562
6,371
167,515
5,521
128,208
340,430
404
6,092
6,932
3,199
1,535
1,168
641
19,567
79,757
3,171,575
83
207,814
7,487
209,162
Geometric volume in 1,000 m3; storage capacity in gas caverns: 500 million scm working gas
IVG share only
5,004
1,270
412
166
6,852
Cash flow Operating earn2002 ings 2002 (EBIT)
8
9
Partly held under trust for German government
in 1,000 m3
7
REAL ESTATE
PORTFOLIO
In-building
parking
| 66 |
Project development
Over the past several years, IVG has acquired experience
IVG project development follows clear strategic
and expertise in developing its own projects and in pro-
business principles:
ject development for third parties. We focus on projects
• The share of development projects undertaken by
in major European cities, the most important locations
currently being Paris, Frankfurt, London, Brussels and
IVG must not exceed one third of the value of the real
estate portfolio.
Berlin. Such projects mostly involve office buildings, fol-
• The criteria that apply for investments in our own port-
lowed by business parks and logistics properties. IVG
folio must also be satisfied by development projects.
is currently engaged in development projects with a
This includes an adequate level of pre-letting.
total value of some €1.9 billion, its own share of which
• Prior investment appraisal for all projects is backed by
amounts to approximately €1 billion. Projects are individu-
external market analysis in conjunction with in-house
ally monitored to ensure that a maximum capital com-
research by our branch offices.
mitment of €400 million is not exceeded. In line with our
strategic focus, we frequently develop projects in partnerships and joint ventures. Current partners include AXA,
Bilfinger & Berger, Deutsche Bank, ECE and Provinzial.
• The greatest possible certainty regarding costs is obtained by working with top-calibre general contractors.
• The total return on capital employed must be between
10% and 20% depending on a project’s location, type
of use and degree of advancement.
• Ongoing development projects are monitored by a
global project controlling system and are subject to
continuous risk assessment.
Quartier am Salzufer,
Berlin (model)
Part of our project development work is dedicated to
IVG subsidiary TERCON
realizing the development reserves within our real estate
is developing the Quartier
portfolio. These amount to some 835,000 m2 of gross
am Salzufer project
floor area.
immediately adjacent to
the Landwehr canal.
| 67 |
Realization*
IVG share
Progress
Status
62,112
2005
32%
Under const.
For sale
Office, retail and residential
9,384
2003
94%
Under const.
Sold
Carossa Quartier, Phase 2
Office and retail
8,941
2003
100%
Under const.
Portfolio
Berlin
Dorotheenstrasse 33–37
Office
7,777
2003
50%
Completed
Sold
Berlin
Niederlehme
Site development
2006
47%
For sale/to let
For sale
Brussels
Madou Plaza
Office
42,081
2004
100%
Under const.
Portfolio
Budapest
Infopark buildings B & I
Office
18,823
2002
100%
Completed
Portfolio
Budapest
Gisella Mill
Site development
2003
100%
For sale/to let
For sale
Düsseldorf
Global Gate, Phase 2
Office
12,614
2003
100%
Under const.
Portfolio
Düsseldorf
Zanderstr. 5, modernization, Bonn
Office
5,535
2003
100%
Under const.
Portfolio
Frankfurt
AIRRAIL
Office, retail and hotel
115,950
2006
31%
In planning
For sale
Frankfurt
Airbizz, Cargo City South, build. 555
Office and logistics
29,919
2003
94%
Under const.
Portfolio
Frankfurt
ComConCenter, bldg. 4 and 4a
Office
16,084
2003
48%
Under const.
For sale
Hamburg
Lilienthal-Center, Hanover
Office and logistics
14,321
2003
100%
Under const.
Portfolio
Hamburg
Glockengießerwall
Office
3,004
2003
100%
Under const.
Sold
Hamburg
Glinde
Site development
2004
100%
For sale/to let
For sale
London
Lombard Street
Office and retail
17,000
2006
100%
In planning
For sale
London
Soho Square
Office
5,643
2003
100%
Completed
Portfolio
Milan
Centro Marelli
Office
16,512
2003
45%
Under const.
Sold
Munich
City Limit Fürth
Retail
21,800
2004
94%
Under const.
Sold
Munich
New bldg. Bosch Telecom, Ottobrunn Office and production
20,509
2003
100%
Under const.
Portfolio
Paris
PERISUD
Office
33,740
2005
30%
Under const.
For sale
Paris
Bois Colombes Ilot 6, 7 and 8
Residential
14,755
2004
30%
In planning
For sale
Paris
M1 H, Avenue de France
Office
12,612
2005
30%
In planning
For sale
Paris
Neuilly-sur-Seine
Office
12,500
2005
30%
In planning
For sale
Paris
Bois Colombes Ilot 1
Office
9,090
2003
30%
Under const.
For sale
Paris
Perspective Seine
Residential
3,764
2004
14%
Under const.
For sale
Location
Project
Type of use
Berlin
Salzufer
Office/site development
Berlin
Leipziger Platz 9
Berlin
Total lettable space 100% in m2
514,470
Total value 100% (€ m)
1,887
IVG share of total value (€ m)
1,044
IVG share of total value (%)
Committed capital (€ m)
* Forecast
Lettable space m2
55
< 400
PROJECT
DEVELOPMENT
R E A L E S T AT E D E V E L O P M E N T P R O J E C T S
| 68 |
In addition to IVG’s own project development activities,
Based on terra and consulting, the TERCON name
IVG companies provide a wide range of development
stands for excellence in real estate service. The Munich
services for third parties. These include:
company develops and carries out prestigious major pro-
• Market and location research and analysis
jects, in some cases in cooperation with project partners.
• Economic efficiency calculation
Examples include the AIRRAIL centre above the ICE
• Property utilization proposals
high-speed rail station at Frankfurt Airport; modernization
• Project financing schemes
of large sites for Siemens and Deutsche Telekom in
• Planning
Munich, Frankfurt and Darmstadt; and development of
• Obtaining planning permission
Nordostpark in Nuremberg. TERCON Immobilien Projekt-
• Project management
entwicklungs-GmbH was established in 1995. IVG took
• Assumption of completion, cost and quality risks for
an 80% shareholding and the management under prop-
other parties, plus turnkey handover
• Securing profitable tenancies for customers
erty entrepreneur Dr. Dierk Ernst 20%. The complex
challenges of project development are met by TERCON’s
team of highly qualified architects, legal experts, structural
IVG has a part in many real estate projects in which it is
engineers and commercial specialists. From the very out-
not mentioned by name. The IVG Group includes affili-
set, the prime focus of any development project is its
ates and associates who excel in their field and cover a
subsequent marketing.
broad spectrum of project development activities. These
include TERCON, Wert-Konzept and ci projektmanage-
The following projects were carried out by TERCON in
ment.
the financial year 2002:
TERCON PROJECTS 2002
• Development of a master plan and obtaining planning permission for the former
Technical Telecommunications Authority in Darmstadt. Deutsche Telekom AG plans
to build a modern IT park on the site.
• Development of the Martinstrasse office park in Munich for Siemens Real Estate
GmbH & Co.
• Development of the City 343 West facility for Siemens in Frankfurt-Rödelheim.
• Development as general contractor of »Canada Hause« on Berlin’s Leipziger Platz.
• Advisory services to Infineon AG, optimizing plans for its Campeon headquarters in
southern Munich.
| 69 |
Wert-Konzept is a Berlin company with special expertise
Current projects
in modernizing and upgrading listed buildings. One out-
• In a joint venture for the Paris region set up with AXA
standing example is the rededication of the Spreespei-
Real Estate Investment Managers (AXA REIM) at the
cher in Berlin’s Osthafen docklands to create a centre
end of 2001, work has commenced on office proper-
for media enterprises. Wert-Konzept also develops new
ties at Bois-Colombes and Montrouge and on owner-
buildings, and is currently constructing a modern office
occupied apartment buildings at Bois-Colombes and
property on Leipziger Platz in Berlin.
Issy-les-Moulineaux. The office buildings were fully let
Düsseldorf-based ci projektmanagement is a joint subsid-
the financial year, tenants had already signed up for
iary of IVG and Corpus Immobiliengruppe. The company
some 85,000 m2 from the plans alone. Construction of
provides project management support across the entire
new office buildings is planned for 2003 in prestigious
real estate production cycle, from the initial idea to utiliz-
Neuilly-sur-Seine and in the dynamically growing Rive
ation proposals, implementation, letting and sale – for
Gauche development district. The joint venture plans to
example in projects such as Düsseldorf’s Global Gate.
develop projects in the Paris region with a total value
of some €800 million by the year 2007.
IVG Businesspark am Flughafen, Düsseldorf After completion and sale of the first phase to an open-end real estate
fund, the 12,600 m2 second phase is now underway.
PROJECT
DEVELOPMENT
before construction had even begun. By the close of
| 70 |
• The former Madou Tower in Brussels, the city’s tallest
building, is being fully modernized and extended, and
will be back on the market as Madou Plaza in autumn
2004.
• In the City of London, IVG has begun preparations for
alterations and extensive modernization work on the
listed headquarters of Lloyds TSB Bank, next door to
the Bank of England.
• June 2003 will see completion of the second phase of
the Global Gate office complex on Grafenberger Allee
in Düsseldorf. The first tenant is a subsidiary of TUI AG.
• The Airbizz freight logistics centre is being developed
in Frankfurt Airport’s Cargo City South. With a high
occupancy level prior to completion, the centre has
been carried over into the IVG real estate portfolio.
• IVG is engaged in two projects on Berlin’s Leipziger
Leipziger Platz, Berlin (model)
Platz: Acting as general contractor, TERCON is devel-
IVG associates are responsible for
oping two office and retail properties, the centre of
two projects under development
which will house the Canadian embassy (»Canada
here: TERCON with »Canada House«
House«). The property is to be taken over by a closed-
and Wert-Konzept with »Classicon«
end fund belonging to Hannover Leasing. On contract
at Leipziger Platz 9.
to IVG, Wert-Konzept is planning and managing the
Leipziger Platz 9 building project; the building has already been sold to an open-end real estate fund.
• Preparations began for construction of the AIRRAIL
• In Berlin’s Charlottenburg district, construction began
centre above the ICE high-speed rail terminal at Frank-
in 2002 on the two buildings comprising the first phase
furt Airport, Europe’s best-connected location in terms
of the Quartier am Salzufer project. One office building
of transport links. By 2006, this architecturally spec-
was sold to Ärzteversorgung Niedersachsen before
tacular project will feature nine storeys of offices, a Le
Méridien hotel – for which a lease covering 35,000 m2
construction work commenced.
• In another London project, work was completed on the
was signed in 2002 – shops, restaurants, storage
neoclassical office property at 20 Soho Square in the
rooms, and parking for about 1,000 cars.
city’s media district.
• At Sesto San Giovanni near Milan, the Centro Marelli
office building was sold to a real estate fund and will
be completed in spring 2003.
| 71 |
• The first construction phase of the ComConCenter
office park in Frankfurt’s Niederrad district was com-
Turnover and operating earnings from project develop-
pleted and partially let.
ment increased markedly to €161.7 million €40.3 mil-
• The finishing touches were put to a new building on
lion respectively. The highlight of 2002 was the sale of
Hamburg’s Glockengießerwall; the building was sold
the Gresham Street development in London, proceeds
before construction began to Grundeigentümer-Verband
from which were recognized in income after completion
Hamburg von 1832 e.V.
and handover in the third quarter. Lloyds TSB Bank is
Projects completed, let and sold
ing located in the heart of London’s banking district. In
• In London, the 25 Gresham Street office property has
exchange, IVG acquired the bank’s former headquarters
been completed and sold to Lloyds TSB Bank, which
at 71 Lombard Street, right next door to the Bank of
will be using the building for its headquarters.
England. IVG has plans to develop the building of approx-
• At Infopark Budapest, two office and service buildings
imately 14,000 m2 in this top City location.
have been completed and much of the space let; tenIn summer 2002, IVG sold the first construction phase
ants include Axelero and Hewlett-Packard.
• In Düsseldorf, the first construction phase of Global
of the Global Gate project in Düsseldorf fully let to an
Gate has been completed, let, and sold to SEB Immo-
open-end real estate fund. The 12,600 m2 second phase
bilieninvestment GmbH.
is currently under construction. Strong interest is already
being shown by potential tenants, highlighting the special
• In Lodz, Poland, the Galeria Lodzka shopping centre
opened and was sold to a closed-end fund belonging
quality of the location.
to DB Real Estate.
PROJECT DEVELOPMENT BY REGION
Total investment €1.0 billion; capital commitment €400 million
Munich
Berlin
Düsseldorf
7%
Brussels
12%
17%
London
18%
5%
Milan
1%
Frankfurt
20%
Paris
12%
Hamburg
4%
Budapest
4%
PROJECT
DEVELOPMENT
moving its headquarters to the 10,200 m2 office build-
| 72 |
Funds
C L O S E D - E N D R E A L E S TAT E F U N D S U N D E R M A N A G E M E N T A N D O N S A L E
Total
Pro-rated IVG
Funds under management (as at 31 December 02)
Number
124
43.15
Funds under management (as at 31 December 02)
€ bn
5.5
1.75
Sales activities 2002
Funds on sale
Number
23
7.4
€m
460
150
Funds sold
IVG fund products:
funds: Hannover HL Leasing GmbH & Co. KG in Munich,
Enhancing the product base and driving growth
and Wert-Konzept ImmobilienFonds GmbH in Cologne.
IVG’s pan-European presence as an initiator of international real estate investments provides investors with an
additional real estate vehicle to complement IVG shares.
• IVG has placed part of the IVG Businesspark MEDIA
WORKS MUNICH in an inheritance tax fund set up by
Hannover Leasing.
Innovative financing and marketing strategies are gaining
importance in the real estate sector. In 2002, open-end
real estate funds enjoyed unprecedented popularity
among investors. While tax-induced investment schemes
are declining in importance, changes in the tax position
• IVG’s closed-end »actioplus« fund was fully subscribed
in 2002.
• Ertragsfonds 5, a fund with real estate in Frankfurt and
Bonn valued at €99.25 million, was 66% subscribed.
• IVG has also pressed on with the establishment of its
are boosting demand for indirect means of investing in
own real estate investment company in the year under
high-quality real estate in Europe. Funds thus provide
review, with the aim of setting up specialist real estate
investors with an additional vehicle in which to place
funds for institutional investors.
their money. IVG already has shareholdings in two successful, experienced initiators of closed-end real estate
Ertragsfonds 5,
Frankfurt
Fund properties
in Frankfurt’s EuropaViertel development.
| 73 |
After the consolidation of
the stock markets, openend real estate funds are
enjoying strong growth in
FUNDS INVESTED € m
funds invested.
FinMFG 3
FinMFG 4
90,000
Open-end real estate funds
80,000
Money market funds
Other securities funds
70,000
Bond funds
60,000
Equity funds
50,000
40,000
FinMFG 3: Third Financial Mar-
30,000
kets Promotion Act (April 1998):
20,000
• Pension
10,000
• Funds of funds
0
FinMFG 4 (July 2002):
-10,000
• Internationalization of
1997
1998
Source: BIV (March 2003), IVG Immobilien AG
1999
2000
2001
2002 (1–8)
open-end real estate funds
FUNDS
-20,000
Shares
Conduit Street, London (West End)
SHARES
| 75 |
| 76 |
Shares
International stock markets
Notwithstanding unprecedentedly low interest rates, the
The main international stock markets continued their
global economy increasingly lost momentum from sum-
downward course for the third year running in 2002. Indi-
mer onwards and the interim price gains were forfeited
vidual shares marked new historical lows. The markets
in their entirety during the second half of the year. All
had started the year with expectations that the global
noteworthy international share indices again suffered
economic slowdown would give way to an upswing
heavy losses in 2002 – the Dow Jones falling by 17%,
and hence a share price recovery. However, accounting
the US tech stock index Nasdaq by 35%, Japan’s Nikkei
scandals at major US corporations such as Enron and
Index by 20%, and Europe’s EURO STOXX 50 by 35%.
WorldCom sparked a crisis of confidence, nipping that
recovery in the bud. The markets were further dragged
The German stock market
down over the course of the year by the situation in
Share prices slipped furthest on the German stock market,
Latin America and doubts voiced regarding corporate
with the DAX losing some 44% and the MDAX 30%.
profit growth. The stock markets did recover after taking
The DAX index in particular recorded its biggest loss in
heavy knocks in early summer, but only temporarily.
value since its birth in 1987. All DAX shares were down
IVG Businesspark am Flughafen, Düsseldorf
A modern business park with 36,000 m2 of development
reserves in the direct vicinity of Düsseldorf airport.
| 77 |
IVG’S SHARE PRICE %
200
150
100
IVG
50
DAX
EPRA Total
Return Index
0
- 50
2.1.1998
15.1.1999
4.2.2000
23.2.2001
15.3.2002
15.3.2003
year-on-year. A major contributing factor was hefty losses
IVG share price performance
in technology and especially finance stocks, which are
IVG shares were unable to shake free from the negative
particularly strongly weighted within the index. Ultimately,
German stock market trend and the fraught situation of
all sectors were affected by the deeply negative perfor-
the economy as a whole. The IVG share price initially
mance of the German stock markets. German real estate
rose gratifyingly until mid-year, reaching a high of €12.99
shares were unable to break free from this trend. The
on 21 May after having gained 22.5% since the start of
EPRA Germany Index, comprising German real estate
the year. In sympathy with the German stock market,
shares, lost 20%. In contrast, real estate shares once
however, our share price markedly yielded thereafter up
again proved capable of upholding their value at European
to the year-end. Year-on-year, the dividend-adjusted IVG
level: The EPRA Total Return Index, which represents
share price fell by 19.5% to €8.30 in 2002, though by
the major European quoted real estate companies, rose
way of comparison, the DAX lost 44% and the MDAX
3.3% in 2002, making it the exception in a generally
30% over the same period.
negative market environment. This buoyancy primarily
reflected strong performance among French, Spanish,
IVG shares: Strong growth potential
Dutch and selected British real estate shares.
It is not possible to be satisfied with the performance of
IVG shares over the past financial year. The decline in the
IVG share price stands in stark contrast to our company’s
positive earnings growth.
SHARES
Source: Bloomberg (March 2003)
| 78 |
Important measures of earnings such as net income,
IVG shares in the Prime Standard and the new MDAX
EBIT and EBITD have more than doubled over the last
Following the resegmentation of the stock market and
five years. The underlying value of IVG shares – our net
the DAX, MDAX, SDAX and NEMAX equity indices put
asset value – stood at €14.16 before deferred taxes
into effect by Deutsche Börse in March 2003, IVG con-
and transaction costs per share in 2002. The current
tinues to feature among the 50 (formerly 70) companies
share price as at March 2003 is more than 50% below
that make up the mid-cap MDAX index. To qualify for
this underlying value. Analysts see here attractive share
inclusion in an equity index, companies must meet the
price potential for IVG shares. We will continue to do our
more stringent Prime Standard disclosure and publicity
utmost to bring out the true value of IVG and its poten-
requirements. IVG has been listed in the Prime Standard
tial for value and earnings growth.
since its launch on 1 January 2003. IVG ranks 24th by
market capitalization and 42nd by market turnover in
IVG shares provide investors with an opportunity to take
MDAX, giving it a secure place in the index. The weight-
a stake in a sound, professionally managed, high-quality
ing assigned to IVG shares in the new MDAX is approxi-
portfolio worth €3.2 billion and invested in Europe’s
mately 1.4%.
leading growth centres. Under our buy-and-sell strategy,
we make use of cyclical differences between European
Besides MDAX, IVG also features in all relevant national
real estate markets to generate cash and earnings flows
and international sectoral share indices. The inclusion
over and above our rental income. Project development
of IVG shares in the major international indices – EPRA,
– in combination with systematic risk containment – opens
EPRA/NAREIT, GPR 250 – and in the Salomon Smith
up further earnings opportunities.
Barney World Property Industry Index is a deciding factor
for international institutional investors in particular.
DIVIDEND PER SHARE €
0.29
0.31*
0.27
1997
1998
1999
0.33
0.34
0.34**
2000
2001
2002
** Excluding special dividend (€0.20 per share)
** Proposed
| 79 |
I V G P E R S H A R E D AT A €
1994
1995
1996
1997
1998
1999
2000
2001
2002
78
78
93
93
93
114
116
116
116
691
622
750
731
1,300
1,761
1,507
1,247
962
Year’s highest price
11.30
9.52
9.47
10.65
15.08
18.86
15.35
15.80
12.99
Year’s lowest price
8.50
7.23
6.98
7.68
7.35
12.94
12.55
9.40
8.00
Year’s closing price
8.85
7.97
9.00
7.87
13.97
15.45
12.99
10.75
8.30
DVFA/SG earnings***
0.36
0.39
0.32
0.45
0.52
0.62
0.73
0.55
0.58
DVFA/SG cash earnings***
0.82
0.94
0.77
1.21
1.24
1.17
1.40
1.06
1.31
Dividend per share
0.22
0.24
0.26
0.27
0.29
0.31 *
0.33
0.34
17.28
18.61
20.91
25.36
26.95
35.34 *
38.28
39.44
39.44
Dividend yield (year-end share price) (%)
2.49
3.01
2.89
3.43
2.08
2.01
2.54
3.16
4.09
Price/earnings (P/E) ratio (year-end share price)
24.6
20.4
28.1
17.5
26.9
24.9
17.8
19.5
15.4
MDAX P/E
20.2
18.4
14.9
17.3
16.7
22.4
18.7
17.5
12.9
DAX P/E
20.5
16.0
15.6
17.2
20.9
30.2
20.4
30.0
16.4
No. of shares at year end (million)
Market cap. (€ m) (based on year-end price)
Total dividend distribution (€ m)
** Proposed
0.34 **
*** see p. 80
Liquidity and market capitalization
Dividends
Besides good fundamentals, investors base their decisions
The Board of Management and the Supervisory Board
on stock market liquidity and adequate market capitaliza-
will be submitting a proposal at the Annual General
tion. From January to December 2002, some 75,000 IVG
Meeting to pay out a dividend of €0.34 per share for
shares changed hands on each day of stock exchange
the 2002 financial year. The total amount paid out in divi-
trading – approximately 88% on the Xetra electronic
dends will be €39.44 million.
trading system, 11% on the Frankfurt Stock Exchange
trading floor, and 1% on the remaining German stock
exchanges. To ensure adequate liquidity specifically for
trading on Xetra, IVG has signed up Dresdner Bank as its
designated sponsor, meaning that Dresdner acts as market maker and sets binding bid and ask prices. IVG’s
average market capitalization in 2002 was approximately
€1.2 billion, making it Germany’s largest quoted real
estate company.
SHARES
Per share
| 80 |
Pattern of shareholdings
Employee share ownership
WCM Beteiligungs- und Grundbesitz AG announced in
As an additional means of raising value awareness among
a standard statement on 4 April 2002 that it held 50.86%
employees, we systematically encourage them to become
of shares in IVG Immobilien AG. In March 2003 WCM
shareholders in our company. Our employees once again
Beteiligungs- und Grundbesitz AG disclosed that they
had the opportunity to purchase shares in their company
increased their share holding of IVG to 54.5%. WCM
at a discount as part of the IVG VALUE programme in
Beteiligungs- und Grundbesitz AG thus remains IVG’s
2002. IVG granted an interest-free loan to cover part of
largest shareholder.
the purchase price. At the end of the two-year term of
the loan, participating employees can either retain the
Stock Options
shares and repay the loan from their own funds or sell a
IVG’s share options scheme creates performance incen-
portion of their shares to cover the loan.
tives that are tied to gains in the value of the enterprise.
The Annual General Meeting of 23 May 2002 approved
DVFA/SG earnings
a new share options scheme for senior management.
The DVFA/SG earnings figure shows the year's earnings
The exercise price of €10.28 per IVG share for options
with extraordinary influences stripped out. It additionally
issued in 2002 represents the average price quoted for
includes book profits realized on property sales in Ger-
IVG shares in the closing auction of Xetra trading on the
many; while these are an essential component of our
Frankfurt stock exchange over the twenty trading days
immediately preceding the issue date. The share options
are valid for five years ending on 25 July 2007. The subscription rights cannot be exercised before expiry of a
normal business operations, they are neutralized in net
income by applying special depreciation allowances
as provided by Sec. 6b of the German Income Tax Act
(EStG).
two-year blocking period on 26 July 2004. The stock mar-
Investor/credit relations
ket price of IVG shares must exceed certain thresholds:
Investor/credit relations form an integral part of our value-
• From 26 July 2004: €11.31
driven corporate philosophy. Our aim is to provide exist-
• From 26 July 2005: €11.82
ing and potential investors, financial analysts and banks
• From 26 July 2006 to the end of the validity period of
with all the information they need to form a well-founded
the option rights: €12.34.
picture of the value, earnings position and financial standing of IVG. For this purpose, we actively communicate
full and timely information on value growth, future valuecreating potential and our strategy.
| 81 |
R E C O N C I L I AT I O N O F D V F A / S G E A R N I N G S * T O N E T I N C O M E € ,000
Consolidated net income for the year
Adjustments for consolidation
2002
2001
70,432
68,106
0
- 2,800
Adjustments to assets
Adjustments to depreciation periods or methods (claw-back effect)
Other adjustmets
- 2,356
21,265
- 13,347
7,949
0
- 33,998
Adjustments to liabilities
Special tax-allowable reserves
Other adjustments
12,771
4,882
DVFA/SG consolidated earnings for the entire Group
67,500
65,404
Minorities’ share of earnings/losses
Share of parent company shareholders in DVFA/SG consolidated earnings
Number of shares outstanding (thousand)
DVFA/SG earnings per share (€)
566
1,479
66,934
63,925
116,000
116,000
0.58
0.55
In 2002, IVG once again held road shows for investors in
An important part of investor relations activities at IVG is
Germany and abroad. IVG also made an appearance at
our active involvement in EPRA, the European Public Real
the German Mid Cap Conference (GMCC) in Frankfurt.
Estate Association. EPRA’s membership is made up of
As in previous years, we also held numerous one-to-one
Europe’s leading quoted real estate companies, financial
and round-table meetings. The large numbers of financial
analysts, investors, banks and auditors. IVG is active on
analysts attending our biannual analysts’ conferences
EPRA’s Management Board, Best Practices Committee
provided further testimony to the financial community’s
and Tax Transparency Committee, which draft uniform
strong interest in our company. More than 25 national
valuation, reporting and tax disclosure standards for Euro-
and international banks now regularly report on IVG’s
pean real estate companies.
activities.
Following up on the previous year’s successful launch of
We also further intensified our dialogue with private
the Real Estate Shares Initiative, IVG and other German
shareholders in 2002. Our new Investor Relations Line
quoted real estate companies held a conference on Real
(+49 228 844 333) attracted numerous enquiries. Frequent
Estate Shares in the European Market on 14-15 October
use was made of our redesigned and further expanded
2002. More than 200 investors, analysts, journalists and
web site (www.ivg.de) and of the opportunity to contact
asset managers came along to discuss the latest devel-
us directly by e-mail ([email protected]).
opments and real estate trends in Europe’s converging
market.
SHARES
* see p. 80
| 82 |
Over and above these activities, IVG has long had a strong
IVG wins EPRA Best Annual Report award
commitment to equity and capital market communication
IVG has won the first European Public Real Estate Associ-
issues, and is a member of the German Investor Rela-
ation (EPRA) award for the best annual report published
tions Association (DIRK) and Deutsches Aktieninstitut
by a European quoted real estate company. Second and
(DAI). IVG is also a Corporate Member of the German
third prize went to Switzerland’s Swiss Prime Site and
Society of Investment Analysts and Asset Managers
London’s British Land Company.
(DVFA), and is a member of the DVFA Efficient Communication Commission and the Real Estate Companies
EPRA, the industry association of quoted European real
Subcommittee of the DVFA Methodology Commission.
estate companies, judged 75 European annual reports. A
jury of high-calibre European financial analysts, investors,
We continued to step up our credit relations activities in
auditors and Cambridge University (UK) economists ap-
2002, openly and comprehensively presenting our com-
praised the reports, primarily with a view to transparency
pany to our banks at road shows and at many one-to-one
for investors and compliance with the Best Practices
meetings. Constructive discussions strengthened our
Recommendations for accounting by European quoted
basis of trust.
real estate companies. The jury highlighted the transparency of the financial statements and valuation prin-
Trust and transparency will remain the guiding principles
ciples in IVG’s report.
of our investor/credit relations activities. We will continue
to build upon these activities to provide the best possible
The award testifies to IVG’s capital market orientation and
investor relations service for all investor groups.
affirms that our capital market communication activities
are top-class, not just by German standards but on a
broader European comparison as well. It both obliges
and motivates us.
STOCK SYMBOLS
Reuters
IVG F
Bloomberg
IVG GR
WKN
620 570
ISIN Code
DE 0006205701
| 83 |
Epra
The European Public Real Estate Association (EPRA) is
A large part of the required information is at IVG already
the European industry association of publicly quoted real
included in the annual financial statements as well as
estate companies. Its members also include many of the
on page 62 onwards and page 67. Additional information,
leading financial analysts, investors, banks, and auditing
relevant to the capital market, required by EPRA is
firms. EPRA’s aim is to promote the publicly quoted real
brought together on the pages that follow. For details
estate sector in Europe. Its work to this end includes har-
of the Best Practices Recommendation, please see
monizing reporting standards in the sector. In September
www.epra.com.
2001, this work led EPRA to issue a set of Best Practices Recommendations for accounting and reporting.
Additional disclosures required by EPRA:
To ensure the highest possible level of transparency for
investors, IVG has acted upon these recommendations
• Net asset value
beginning with its annual financial statements for 2001.
• EPRA income presentation
• Risk management
Market values of Real Estate Portfolio
2002
2001
3,171.6
3,339.1
59.0
88.3
Current assets (excluding own shares)
495.7
551.0
Financial assets*
260.4
183.6
Project development
Other assets
11.9
49.5
Total assets
3,998.6
4,211.5
Liabilities
2,106.4
2,072.0
Capitalized leasing costs/other liabilities
Provisions
35.0
75.3
162.3
152.1
Deferred income
52.6
18.1
Total borrowing
2,356.3
2,317.4
Net asset value
1,642.3
1,894.1
14.16
16.33
58.8
48.3
NAV per share (€)
EPRA Net asset value:
Deferred taxes (going concern)
Transaction costs
NAV (going concern) (€)
NAV per share (going concern) (€)
* Net of companies whose real estate holdings are already included in the market values
47.6
35.4
1,535.9
1,810.3
13.24
15.61
EPRA
N E T A S S E T VA L U E € m
| 84 |
Fair market values
The net rental value is made up of a land component and
The real estate portfolio was valued as at 30 September
a building component. The land component is the value
2002 by the following independent experts:
of the land multiplied by a fair market interest rate (land
• Germany: PricewaterhouseCoopers
interest rate). The building component is the net rental
• Spain/Portugal: CB Richard Ellis
value minus the land component. The building compo-
• Belgium: DTZ Wissinger
nent is capitalized over the building’s remaining useful
• France: GVA Alban Cooper, Jones Lang LaSalle
life at the building interest rate, yielding the building
• United Kingdom: FPD Savills
value. If the actual rental income under the tenancy
• Italy: REAG
agreements in force on the valuation cut-off date devi-
• Hungary: DTZ Hungary
ates from the rental income obtainable in the long term
• Sweden: DTZ Sweden
according to the expert appraisal, the difference is recognized by marking up (overrented) or marking down (under-
The independent valuations of German properties were
rented) the investment value for the probable duration of
obtained by the investment method as usually practised
the deviation.
in Germany; most properties outside Germany are valued
on the basis of the RICS Appraisal and Valuation Manual
Finally, the land value – which is based on purchase
(Red Book) published by the Royal Institution of Charted
prices for comparable plots or on guidance tables – is
Surveyors. All valuations comply with the provisions of
added in to obtain the investment value.
the International Accounting Standards (IAS), and specifically with IAS 40. The properties acquired by IVG during
Valuation of real estate outside Germany
2002 in Milan (Piazzale Lodi) and Madrid (Coslada) are
The net rent (gross rent less running costs that cannot
carried at purchase price plus incidental costs.
be apportioned among tenants) is ascertained for each
tenancy agreement. The net rent is capitalized as an
Valuation of real estate in Germany
annuity up to the estimated date of the next rent adjust-
Under the investment method as practised in Germany,
ment. Rent adjustments are accounted for at the esti-
the gross rental value for the period is first calculated
mated rental value on renewal and are capitalized as a
from the (actual or imputed) rental income obtainable in
perpetuity after deduction of running costs and incorp-
the long term. Running costs that cannot be charged on
orated into the valuation.
to tenants are then deducted to arrive at a net rental
value.
| 85 |
Development projects
Deferred taxes on hidden reserves
Development projects are recognized at their discounted
The going-concern value incorporates deferred taxes
contribution margin. The discount rate used amounts to
discounted over 25 years at a discount rate of 8%. It is
15%.
additionally assumed that book gains on sales of German properties can be transferred to newly acquired
Financial assets
properties under Sec. 6b of the German Income Tax
The asset values carried in the consolidated balance
Law and thus remain untaxed.
sheet are shown net of amounts already included in the
market value of real estate assets.
Sony, Lisbon
This office building with its elliptical corner tower has
won two awards: »best development project« and »best
EPRA
office building« in Portugal.
| 86 |
E P R A I N C O M E S T AT E M E N T € m
Gross rental income
Gains on sales of real estate
2002
2001
244.4
211.9
43.0
50.2
- 134.0
24.2
Total revenues from property investments
153.4
286.3
Earnings from development activities
114.9
57.5
Unrealized gains (losses) on revaluation of property investments
Earnings from real estate management
38.3
57.6
Earnings from other operating activities
202.1
120.5
Total revenues
508.7
521.9
Property operating expenses
89.8
85.8
Personnel expenses
52.1
48.3
Other expenses
150.5
103.8
Depreciation
157.8
94.0
Expenses
450.2
331.9
Net operating income (before revaluation)
192.5
165.8
0
0
Other income
Net income on ordinary activities before finance costs (before revaluation)
192.5
165.8
Net interest payable
- 95.9
- 88.4
Net income before tax (before revaluation)
96.6
77.4
- 26.2
- 9.3
Net income (before revaluation)
70.4
68.1
Net income (before revaluation) per share (€)
0.61
0.59
Income tax
Unrealized gains (losses) on revaluation of property investments
- 134.0
24.2
41.6
- 7.5
Net income (including unrealized gain/loss and deferred tax)
- 22.0
84.8
Net income (including unrealized gain/loss and deferred tax) per share (€)
- 0.19
0.73
Deferred income tax on revaluation result
Notes on the EPRA income statement and reconciliation with statutory accounts
• Earnings from real estate management
Includes ancillary letting costs recouped from tenants
and management fees from the management of logis-
• Gross rental income
Net rents excluding running costs that can be apportioned among tenants.
• Gains on sales of real estate
Capital gains on sales of properties as stated in the
annual financial statements.
• Earnings from development activities
Total operating performance of the Project Develop-
tics assets.
• Earnings from other operating activities
Includes operating income from participating interests,
turnover of corporate functions, and turnover from noncore business.
• Property operating expenses
Material expenses and maintenance/upkeep expenses.
• Other expenses
ment segment as stated in the annual financial state-
Other operating expenses (excluding maintenance/
ments.
upkeep expenses), and other taxes.
| 87 |
Risk management policies
Currencies
Foreign-currency positions arising through investments
Derivatives
in non-euro countries are matched by refinancing in the
We make systematic use of derivative financial instru-
same currency. Unmatched foreign-currency positions
ments to reduce risk due to exchange rate and interest
in investments and exchange-rate risks are thus sys-
rate changes in the course of IVG’s Europe-wide activi-
tematically ruled out at Group level.
ties. For this purpose, the Group Treasury exclusively
uses marketable instruments with adequate market
Interest rate exposures, loan maturities and
liquidity. To ensure the lowest possible risk of counter-
average cost of debt
party default, contracts involving derivative financial
Interest rate exposures and loan maturities are geared
instruments are entered into solely with major European
to the real estate portfolio, reflecting the typical duration
banks of immaculate credit standing.
of most investments in real estate. Due to our active
buy-and-sell strategy the total volume is also partly
The use of derivative instruments is subject to uniform
financed in the short term.
internal guidelines and strict controls. Derivative financial
instruments are used exclusively to hedge risks in con-
Calculated over the entire year, the earnings effect of
nection with specific underlying transactions. Together
a 1% change in interest rates would be approximately
with the corresponding hedged item they form an inte-
€1.5 million. The weighted average cost of debt is 5%.
grated valuation unit. Gains and losses on the hedge
The average term to maturity on bank loans is 5 years.
and the hedged item are offset and are highly likely to
20% of bank loans are secured against by mortgages.
cancel each other out so that the valuation unit is risk
EPRA
neutral for IVG.
| 88 |
Corporate Governance
Corporate governance refers to the entire system by
John von Freyend, this organization is drawing up cor-
which a company is managed and monitored, its corpor-
porate governance principles specifically for real estate
ate principles and guidelines, and the system of internal
companies which go beyond those recommended in the
and external controls and supervision to which the com-
Cromme Commission's Code.
pany's operations are subjected. Good, transparent corporate governance ensures that our company will be
During 2002, IVG undertook numerous measures geared
managed and monitored in a responsible manner geared
towards compliance with the German Corporate Govern-
to value creation. This fosters the confidence of invest-
ance Code. These included a reworking of the Board of
ors, employees, business associates and the general
Management's Terms of Reference and the establish-
public in IVG's management and supervision.
ment of Terms of Reference for the Supervisory Board.
IVG complies with the recommendations of the Code
Declaration of compliance with the recommendations of
with the following specific exceptions:
the German Corporate Governance Code by the Board of
Management and Supervisory Board of IVG Immobilien
4.2.4 Compensation of the members of the Board of
AG as per Sec. 161 of the German Stock Corporations
Management shall be reported in the Notes to the Con-
Act (Aktiengesetz – AktG):
solidated Financial Statements, subdivided according to
fixed, performance-related and long-term incentive com-
IVG welcomes the principles drawn up by the Govern-
ponents. The figures should be individualized.
ment Commission on the German Corporate Governance
Code (the »Cromme Commission«). Most of these prin-
IVG certainly intends to report the compensation paid to
ciples have already formed an integral part of our value-
members of the Board of Management in the Notes to
oriented corporate policies for some years. In September
the Consolidated Financial Statements, subdivided accord-
2002, IVG also became a founder member of a corporate
ing to fixed, performance-related and long-term incentive
governance organization for the German real estate in-
components. However, the figures will not yet be indivi-
dustry, »Initiative Corporate Governance der deutschen
dualized. We shall await further developments in the
Immobilienwirtschaft e.V.«. Under the chairmanship of
publication of top executives' pay on an individual basis.
IVG Immobilien AG's Chief Executive Officer Dr Eckart
| 89 |
5.3.2 The Supervisory Board shall set up an Audit Com-
7.1.1 The Consolidated Financial Statements and interim
mittee which, in particular, handles issues of accounting
reports shall be prepared under observance of internation-
and risk management, the necessary independence
ally recognized accounting principles.
required of the auditor, the issuing of the audit mandate
to the auditor, the determination of auditing focal points
IVG currently conducts its financial reporting according
and the fee agreement.
to German accounting laws and regulations, and intends
by 2005 at the latest, in accordance with statutory transi-
It does not make sense to establish a separate Audit
tional rules, to switch to reporting in accordance with
Committee since IVG's Supervisory Board has six mem-
International Accounting Standards (IAS). To ensure max-
bers, meaning that all of the issues involved can be dis-
imum transparency for investors, IVG already complies on
cussed and decided upon by the full Supervisory Board
a voluntary basis with the European Public Real Estate
with maximum efficiency.
Association's (EPRA's) Best Practices Recommendations
on accounting, valuation and disclosure. In September
2002, the company received the EPRA award for the
best annual report by a listed public European real estate
company. EPRA's membership takes in Europe's leading
public real estate companies, financial analysts, investors,
Habichtstraße, Hamburg
Office premises with
green courtyard.
CORPORATE
GOVERNANCE
banks and auditors.
Group
Management Report
AIRRAIL, Frankfurt
| 90 |
GROUP
MANAGEMENT REPORT
| 91 |
| 92 |
IVG Immobilien AG Group
Management Report for the 2002 financial year
GROUP PERFORMANCE € m
IVG was able to hold its course against a difficult economic environment in 2002. Turnover increased by 47.6%
2002
2001
Group total operating
performance
637.8
486.6
31.1% to €637.8 million. EBITD rose by 34.8% to
Group turnover
471.2
319.3
€350.3 million and operating earnings (EBIT) by 13.8%
EBITD
350.3
259.8
to €188.7 million. Consolidated net income for the year
188.7
165.8
increased by 3.4% to €70.4 million. Major sources of
Consolidated net income
for the year
70.4
68.1
Investments
358.3
432.2
development. The sale of the Gresham Street develop-
Shareholders’ equity
769.5
758.4
ment in London made a significant contribution to the
3,185.3
3,021.9
Total assets
to €471.2 million and total operating performance by
earnings besides our sound letting business comprised
profits on sales of real estate and earnings from project
increase in earnings. Having been sold to Lloyds TSB
Bank, the 10,200 m2 building in the City was handed
over and the transaction settled in the third quarter as
planned.
• IVG remains on course
In our non-core business, we completed a profitable
• Significant earnings contribution
sale-and-leaseback transaction with a leasing company
from project development
• Attractive dividends
for the remainder of our rolling stock. Third party purchase options exist for the buyback options granted to
IVG; we anticipate that these purchase options will be
Hopes for a European economic recovery in 2002 were
exercised.
not fulfilled. The weak economic environment has left its
mark. Rent levels are falling on almost all European office
Portfolio management segment
markets for the first time since 1996. Top rents in the
Letting our real estate portfolio is the mainstay of our
euro zone have fallen by an average of 4.7%. An excep-
business. Rental income amounted to €244.4 million in
tion is Brussels with an increase of 9% driven by special
2002, an increase of 15.3% over the previous year.
demand from institutions of the European Union in the
city centre. By the same token, average rents have de-
We have broadened our future earnings base by acquir-
creased and vacancy rates have risen throughout Europe.
ing high-quality properties in Frankfurt, Madrid and Milan.
| 93 |
In Frankfurt, we purchased an office and logistics centre
After the annual valuation by mostly external, independ-
with a total of 30,000 m2 in Cargo City South, close to
ent experts, the value of IVG’s real estate portfolio (in-
the airport. IVG made use of the growth potential of the
cluding caverns) is currently €3.2 billion.
Milan real estate market and demand for logistics space
at Madrid Barajas International Airport to purchase two
Project development segment
properties in 2002. The logistics centre at Coslada with
The pre-eminent IVG transaction of 2002 took place in
easy access to Madrid’s airport has just under 25,000
m2
London’s banking district. Lloyds TSB Bank has acquired
of usable space and offers attractive development poten-
IVG’s Gresham Street development for its new head-
tial for the future. The building on Piazzale Lodi just out-
quarters. The turnover and earnings of the project devel-
side Milan’s city centre contains approximately 20,800 m2
opment segment rose sharply as a result.
of office space and is fully let.
In exchange, IVG purchased the bank’s former headquarWe have once again made use of cyclical differences
ters in Lombard Street. The approximately 14,000 m2
between Europe’s markets to realize handsome profits
office building offers outstanding development potential
on sales of real estate. We made major sales in Brussels
in view of its location next door to the Bank of England.
and Munich. In Brussels, we disposed of two office buildings in good locations. In Munich, IVG sold the Office
In Düsseldorf, our early involvement has paid off in the
Tower in its Businesspark MEDIA WORKS MUNICH. We
upcoming Grafenberger Allee business location. The first
also placed the majority of the IVG Businesspark MEDIA
construction phase of Global Gate has been sold, fully
WORKS MUNICH in a sale-and-leaseback arrangement
let, to an open-end real estate fund. The second phase is
with a real estate investment fund company. IVG has a
currently under construction.
Leasing KG initially holding a further stake; other investors
In Paris, our long-term project development joint ven-
will provide capital as »non-typical« silent partners (that
ture with AXA, which plans to undertake projects worth
is, with control rights beyond those typically accorded
€800 million by 2007, has let over 85,000 m2 of its first
under a silent partnership agreement). The proceeds
four projects from the plans alone. This made IVG/AXA
from the transactions will be realized over the fund’s
one of the French capital’s most successful letters of
investment term and are carried as accruals in the Group
property in 2002.
financial statements. After completion of upgrading, we
can thus continue to profit from further development of
the property without tying up capital.
GROUP
MANAGEMENT REPORT
majority shareholding in this company, with HL Hannover
| 94 |
Before construction of the 116,000 m2 AIRRAIL Center
IVG provides funding to companies in the Group via a
Frankfurt had even begun, some 35,000 m2 were let to
central treasury function. The purpose of this central
the Le Méridien group, which will operate one of the
funding network is to lower the cost of capital through-
world’s most modern airport hotels from the centre.
out the Group by optimum pooling of liquidity. The treasury function also guarantees the solvency of each of the
In Brussels we began work on modernizing the 42,000 m2
companies involved, and monitors interest, currency and
Madou Plaza. The city’s highest building will come back
liquidity risks in the Group as a whole. Specifically in
onto the market in 2004.
2003, the international subsidiaries in Belgium, Italy and
Spain were integrated into IVG’s electronic cash pool.
Financing
To minimize interest rate risk, interest rate swaps with
IVG reduced its net borrowing in 2002 by 6% to
a nominal value of €100 million and an average term of
€1,774.7 million. IVG has at its disposal a total of
seven years were entered into on the basis of existing
€57 million in authorized capital. This provides the en-
loan agreements. IVG thus made use of the low level of
during basis for a strong equity position from which
interest rates in 2002 to secure itself favourable condi-
IVG can soundly finance future growth. IVG additionally
tions for the long term and reduce interest rate risk. The
has a nominal €30 million in conditional capital to issue
average interest rate on borrowed capital is 4.79%.
convertible bonds as a hybrid means of furnishing equity
finance.
C O N S O L I D AT E D C A S H F L O W S T AT E M E N T € m
2002
2001
Cash provided by operating activities
238.4
138.2
Cash used for investing activities
-42.0
-257.7
Cash used for/provided by financing activities
-85.3
83.7
Net change in cash and cash equivalents
111.1
-35.8
0.1
16.2
Cash and cash equivalents at the start of the period
20.2
39.8
Cash and cash equivalents at the end of the period
131.4
20.2
Cash and cash equivalents generated
by consolidation changes
The full cash flow statement appears in Section III of the Notes to the
Financial Statements.
| 95 |
IVG significantly increased its cash flow from operating
investment and to reduce net borrowing. Cash and cash
activities to €238.4 million, primarily as a result of sale-
equivalents increased on balance to more than €131 mil-
and-leaseback transactions. Cash provided by operating
lion at the end of 2002.
activities was used in the 2002 financial year to finance
C O N S O L I D AT E D V A L U E A D D E D S T AT E M E N T € m
2002
2001
Turnover
471.2
319.3
Other income
171.5
178.4
Group performance
642.7
497.7
Material expenses
-72.8
-67.9
Depreciation
-161.6
-94.0
Other expenses
-153.1
-109.0
Total expenses and depreciation
-387.5
-270.9
255.2
226.8
Shareholders
38.8
37.9
Employees
52.1
48.3
State
40.7
21.9
Creditors
92.1
88.4
Group
31.5
30.3
255.2
226.8
Source
Value added
Value added
Value added increased by 12.5% in 2002. This was due
which is attributable to the Gresham Street develop-
to a marked rise in Group performance, a large part of
ment project.
GROUP
MANAGEMENT REPORT
Distribution
| 96 |
IVG Immobilien AG: Annual Financial Statements for 2002
IVG IMMOBILIEN AG: BALANCE SHEET € m
31.12.2002
31.12.2001
0.5
0.4
Financial assets
1,916.3
1,335.2
Total fixed assets
1,916.8
1,335.6
Receivables from affiliated companies
446.9
698.8
Other assets/prepaid expenses
207.1
85.6
Total current assets
654.0
783.4
2,570.8
2,120.0
695.8
692.4
48.7
50.6
539.7
193.9
Other liabilities
1,286.6
1,183.1
Total liabilities and shareholders’ equity
2,570.8
2,120.0
Assets
Property, plant, equipment and intangible assets
Total assets
Liabilities
Shareholders’ equity
Provisions
Liabilities to affiliated companies
Financial assets and correspondingly liabilities to affiliated
sidiaries and intra-Group acquisitions. The »other assets«
companies increased as a result of investments at sub-
item comprises short-term credit balances at banks.
| 97 |
2002
2001
Net income from participating interests
126.1
106.9
Net interest payable
-41.2
-32.2
Other income and expenses
-34.2
-33.6
50.7
41.1
Taxation
-7.8
4.1
42.9
45.2
0.9
0
Withdrawal from reserves
Transfers to reserves
-4.3
-5.8
Net income available for distribution
39.4
39.4
We shall be submitting a proposal to the Annual General
the interests of WCM Beteiligungs- und Grundbesitz-AG,
Meeting on 27 May 2003 to pay out a dividend of €0.34
Frankfurt am Main or SIRIUS Beteiligungsgesellschaft
per share.
mbH, of Wackerow.«
The complete financial statements of IVG Immobilien AG,
Risk management system
as issued with their clean auditors’ certificate by PwC
Any business enterprise entails risks. IVG meets these
Deutsche Revision Aktiengesellschaft, Wirtschaftsprü-
risks with its anticipatory management system. This
fungsgesellschaft of Düsseldorf, are published in the
allows risks to be identified in good time, appraised and
Federal Bulletin (Bundesanzeiger) and deposited at Bonn
countered by appropriate action. IVG’s risk management
Local Court under the registration number HRB 4148.
system is integrated into its organizational structure and
processes. Its key components are the controlling and
Dependent company report
planning process, Group-wide guidelines and IT systems,
The Board of Management has issued a separate report
and reporting to the Board of Management and the
on relations with affiliated companies, in accordance with
Supervisory Board. IVG thus identifies, appraises, moni-
Sec. 312 of the German Stock Corporation Act (AktG).
tors and controls the risk situation on an ongoing basis.
This report includes the following statement: »In the cir-
The risk management system is regularly examined by
cumstances known to us at the time legal transactions
our auditors to ensure that it is working as it should. Its
were undertaken, our company was appropriately remu-
effectiveness and efficiency are secured by our internal
nerated for such transactions in all instances. We did not
auditing function.
take or omit to take any measures at the behest of or in
GROUP
MANAGEMENT REPORT
I V G I M M O B I L I E N A G 2 0 0 2 : I N C O M E S T AT E M E N T € m
| 98 |
Our risk management system is integral to our business
The instruments used to hedge monetary risks of this
and investment decisions. As risk increases the cost of
kind are listed in the Notes to the Financial Statements.
capital, we account for it by requiring a higher minimum
rate of return on investment. We only invest if the antici-
Market environment risks, arising from the wide variety
pated rate of return exceeds this minimum and so covers
of tax, competition and environmental laws and regula-
the built-in risk premium.
tions under which IVG operates, are countered at IVG
by basing decisions on extensive legal and technical
The focus of our portfolio management activities is on
consultation.
optimizing the portfolio of tenancy agreements and maintaining high occupancy rates. Key early warning indica-
IVG conducts wide-ranging research at both local and
tors used in portfolio management are rent forecasts,
headquarters level to further enhance the reliability of its
effective occupancy rates, new lettings, rental income,
market judgements, working together with international
and reports on buying and selling activities. Classified
research institutes for the purpose. Studies of the general
using ABC analysis methods, this information is reported
economic, sectoral and market situation are prepared on
on an ongoing basis.
a quarterly basis for this purpose.
In its project development business, IVG concentrates
There are currently no apparent risks from past or future
on high-quality projects that are suitable for incorporation
developments that could threaten the continued exist-
into the Group’s own portfolio. The information continu-
ence of IVG. All identified risks are adequately covered
ously gathered and analysed in this segment includes
by balance-sheet provisions.
project progress analyses, pre-letting rates and anticipated profit contribution.
Events of special importance after the close
of the financial year
Interest rate and exchange rate risk in our operating busi-
To the best of our knowledge, no events of special im-
ness is countered by using derivative financial instruments.
portance have arisen since the close of the financial year.
These are used solely to the extent necessary to hedge
against adverse interest and exchange rate movements.
| 99 |
Outlook
stock markets, we will intensify our efforts towards issu-
The ECB and most economic research institutes are fore-
ing and managing our own funds. To this end, we estab-
casting moderate economic growth of between 0.8%
lished a capital investment company to issue specialist
and 1.7% for Europe in 2003. On this basis, we antici-
open-end funds in spring 2003. We aim to exploit the
pate that average rents will remain stable in Paris, Munich
available options for recruiting equity and to offer
and Budapest, decline in London, Frankfurt and Madrid,
investors a broad spectrum of high-quality, indirect forms
and continue to increase in Brussels. In view of the un-
of investment in real estate under the umbrella of IVG.
broken interest in indirect investments in real estate, the
investment market will probably remain stable in 2003.
In view of the developments described in the foregoing
and the unforeseeable consequences of the impending
Our sound letting business with its stable cash flows will
conflict in the Near East, it would be irresponsible to
remain the mainstay of our business. IVG will continue
issue an earnings forecast at this juncture.
to generate good earnings by active management of its
real estate portfolio, buying and selling property, and
Bonn, 18 March 2003
undertaking development projects subject to strict risk
control.
IVG cannot, however, insulate itself from the general
economic trend. Hopes of an economic recovery have so
far gone unfulfilled. The real estate market has already
responded in 2002 with decreases in space turnover and
top rents. This also affected the IVG portfolio, where it
In view of the restrained demand in Europe, 2003 will
not be an easy year. We anticipate a decline in investment volumes. Against the backdrop of persistently weak
Bernd Kottmann
Dirk Matthey
GROUP
MANAGEMENT REPORT
led to a decline in effective occupancy rates.
Group
Financial Statements
Place Vendôme, Paris
GROUP
FINANCIAL STATEMENTS
| 102 |
C O N S O L I D AT E D B A L A N C E S H E E T A S AT 3 1 D E C E M B E R 2 0 0 2
See note
€ ,000
ASSETS
As at 31.12.2002
€ ,000
As at 31.12.2001
€ ,000
A. Assets
I. Intangible assets
1.
1. Patents, trademarks, licences and similar rights
6,192
8,416
2. Goodwill
5,601
3,077
3. Advance payments made
60
0
11,853
II. Property, plant and equipment
1.
1. Real estate (land, leasehold rights and buildings,
including buildings on land held by third parties)
2,173,595
2. Technical equipment, plant and machinery
3. Other fixtures and fittings, tools and equipment
4. Advance payments made and construction in progress
2,046,684
46,266
56,077
6,436
19,109
148,143
85,931
2,374,440
III. Finanial assets
11,493
2,207,801
2.
1. Shares in affiliated companies
47,848
2. Long-term loans to affiliated companies
50,843
1,311
5,647
3. Shares in associated companies
24,572
32,033
4. Participating interests
38,082
32,631
5. Long-term loans to companies linked
via participating interests
68,961
13,033
6. Long-term securities
7. Other long-term loans
0
634
108,395
87,430
289,169
222,251
2,675,462
2,441,545
B. Current assets
I. Inventories
3.
1. Raw materials and supplies
2. Work in progress
3. Advance payments made
3,163
3,557
32,508
130,427
55
93
35,726
II. Receivables and other assets
134,077
4.
1. Trade recevaibles
69,158
44,395
2. Receivables from affiliated companies
64,947
91,373
3. Receivables from companies linked
4. Other assets
47,604
40,461
146,873
232,050
328,582
III. Securities available for sale
1. Own shares
438
2. Other securities
1,341
0
2
438
IV. Liquid assets
408,279
5.
131,426
20,187
496,172
563,886
13,638
16,510
Total assets
3,185,272
3,021,941
Trust assets
199,302
199,116
C. Prepaid expenses
6.
1,343
7.
| 103 |
See note
€ ,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
As at 31.12.2001
€ ,000
8.
I. Subscribed capital
8.1
116,000
116,000
II. Additional paid-in capital
8.2
458,897
458,897
III. Revenue reserves
8.3
1. Reserve required by law
2,556
2,557
2. Reserve for own shares
438
1,341
3. Other revenue reserves
144,233
IV. Consolidated net income available for distribution
8.4
V. Minority interests
8.5
B. Special tax-allowable reserve
C. Provisions
9.
111,963
147,227
115,861
39,440
39,440
7,909
28,154
769,473
758,352
31,465
20,917
10.
1. Provisions for pensions and similar obligations
12,842
13,014
2. Provisions for taxes
53,482
52,176
3. Other provisions
95,941
86,880
162,265
D. Liabilities
152,070
11.
1. Bank loans
1,906,083
1,908,141
2. Advance payments received for orders
15,290
2,564
3. Trade acccounts payable
23,959
19,382
4. Liabilities on bills accepted and drawn
0
10,000
5. Liabilities to affiliated companies
16,194
11,823
6. Liabilities to companies linked via participating interests
12,909
29,781
131,991
90,841
7. Other liabilities
E. Deferred income
Total liabilities and shareholders’ equity
Trust liabilities
12.
2,106,426
2,072,532
115,643
18,070
3,185,272
3,021,941
199,302
199,116
GROUP
A. Shareholders’ equity
As at 31.12.2002
€ ,000
| 104 |
C O N S O L I D AT E D F I X E D A S S E T S C H E D U L E O F I V G I M M O B I L I E N A G
F I N A N C I A L Y E A R 2 0 0 2 € ,000
Cost of acquisition or construction
01.01.02
Consolidation
changes Additions
Reclassifi- Currency
cations
influences
Disposals
31.12.02
30
16,916
I. Intangible assets
1 . Patents, licences, trademarks
and similar rights
17,837
228
2 . Goodwill
15,821
3,242
3 . Advance payments made
(Total intangible assets)
-1,119
19,063
60
33,658
60
3,530
-1,119
30
36,039
351,031
31,293
-10,444
150,542
2,834,923
446
5
-1,613
21,728
117,270
1,510
10
-52
137,451
25,965
II. Property, plant and equipment
1 . Real estate (land, leasehold rights and
buildings, including buildings on land
held by third parties)
2,593,271
2 . Technical equipment,
plant and machinery
140,160
3 . Other fixtures and fittings,
tools and equipment
161,831
4 . Advance payments made and
construction in progress
(Total property, plant and equipment)
Running total
20,314
117
85,931
4,577
69,147
-5,098
48
5,284
149,321
2,981,193
25,008
422,134
26,210
-12,061
315,005
3,127,479
3,014,851
25,008
425,664
25,091
-12,061
315,035
3,163,518
52,431
-640
3,319
-499
5,551
49,060
III. Financial assets
1 . Shares in affiliated companies
2 . Long-term loans to affiliated companies
5,647
3 . Shares in associated companies
32,033
4 . Participating interests
5 . Long-term loans to companies
linked via participating interests
6 . Long-term securities
7 . Other long-term loans
(Total financial assets)
(Total fixed assets)
5,850
18,432
8,783
2,714
3,076
-25,091
3,878
24,572
36,718
20,978
499
13,464
44,731
13,033
56,056
69,089
634
634
87,520
40,911
228,016
17,792
130,190
3,242,867
42,800
555,854
19,946
-25,091
-12,061
108,485
52,256
298,651
367,291
3,462,169
| 105 |
Depreciation, write-ups and write-downs
01.01.02
Consolidation
changes Additions
9,421
1,332
12,745
717
22,166
2,049
Write-ups
Reclassifications
Book value
Currency
influences Disposals
29
31.12.02
31.12.02
31.12.01
10,724
6,192
8,416
13,462
5,601
3,076
29
24,186
11,853
11,492
546,587
14,930
84,083
145,914
-354
45,749
661,328
2,173,595
2,046,684
5,698
-77
18,700
71,004
46,266
56,077
4,149
-41
127,390
19,529
6,436
19,109
142,722
89
1,178
148,143
85,931
773,392
16,197
155,761
-472
191,839
753,039
2,374,440
2,207,801
795,558
16,197
157,810
-472
191,868
777,225
2,386,293
2,219,293
1,212
47,848
50,843
1,403
1,311
5,647
24,572
32,033
6,649
38,082
32,631
128
68,961
13,033
90
108,395
87,430
1,178
1,588
38
-414
1,403
4,087
2,148
414
128
634
90
5,765
801,323
3,717
16,197
161,527
-472
191,868
9,482
289,169
222,251
786,707
2,675,462
2,441,544
GROUP
60
| 106 |
C O N S O L I D AT E D I N C O M E S T AT E M E N T
FOR THE YEAR ENDED 31 DECEMBER 2002
See note
€ ,000
2002
€ ,000
2001
€ ,000
1.
Turnover
1.
471,238
319,290
2.
Net change in inventories of finished goods,
work in progress and work not yet billed
2.
-60,894
29,685
3.
Other own work capitalized
4.
Other operating income
3.
5.
Material expenses
4.
1,599
1
225,878
137,619
637,821
a) Cost of raw materials, supplies and
acquired merchandise
-6,004
b) Cost of acquired services
-16,363
-66,777
-51,544
-72,781
6.
Personnel expenses
-67,907
5.
a) Wages and salaries
-43,238
b) Social security levies, and costs of retirement pensions
and other welfare benefits
7.
486,595
-39,086
-8,882
-9,197
-52,120
-48,283
Depreciation and write-downs on intangible assets
and property, plant and equipment
6.
-157,810
-94,015
8.
Other operating expenses
7.
-153,051
-109,099
9.
Income from participating interests
8.
4,915
11,061
10. Income from long-term loans
9.
14,223
8,230
11. Other interest and similar income
9.
21,420
25,912
12. Write-downs on financial assets and securities available for sale
9.
-3,844
-4,052
13. Interest and similar expenses
9.
-127,717
-118,445
111,056
89,997
14. Net income from ordinary activities
15. Income taxes
10.
-26,158
-9,328
16. Other taxes
10.
-14,466
-12,563
70,432
68,106
-566
-1.479
0
57
17. Consolidated net income for the year
18. Minority interests
19. Net income brought forward
20. Transfer to other revenue reserves
a) to the reserve for own shares
b) to other revenue reserves
21. Withdrawals from the reserve for own shares
22. Changes in revenue reserves
23. Consolidated net income available for distribution
0
-886
-4,348
-4,963
-4,348
-5,849
903
0
-26,981
-21,395
39,440
39,440
| 107 |
Notes to the IVG Consolidated
Financial Statements for the 2002 financial year
I. General principles applied to the Consolidated Financial Statements
As in previous financial years, the Consolidated Financial
As a general rule, associated companies are valued at
Statements of the IVG Group have been drawn up in ac-
equity if IVG holds a stake between 20% and 50% and
cordance with the German Commercial Code (Handels-
exerts a significant influence over them. Other participat-
gesetzbuch – HGB), Stock Corporations Act (Aktiengesetz
ing interests are reported at acquisition cost.
– AktG), and Principles of Orderly Accounting (Grundsätze
ordnungsmäßiger Buchführung – GoB, also known as
30 subsidiaries which are non-operating or which conduct
»German GAAP«).
only a small volume of business have not been consolidated because they are of minor significance for convey-
The financial statements of all the companies included
ing a true and fair view of the Group’s assets and financial
in these Consolidated Financial Statements are prepared
affairs, as provided by Sec. 296 (2) of the Commercial
using uniform accounting and valuation principles.
Code. In addition, under Sec. 296 (1) 3, 13 subsidiaries
have not been included in the consolidated statements
The financial statements and the lists of participating
because the stakes in them are held solely for the pur-
interests of IVG Immobilien AG and the IVG Group are
pose of their onward sale. Inclusion in the consolidated
deposited at Bonn Local Court (Amtsgericht), registered
statements was abstained from for three companies due
as HRB no. 4148, and are published in the Federal Bulletin
to organizational difficulties, in accordance with Sec. 296
(Bundesanzeiger).
(1) 2 of the Commercial Code.
Scope of consolidation
In all, 98 domestic and 89 foreign-domiciled companies
The Consolidated Financial Statements include the parent
were consolidated in the 2002 financial year, 20 more
company, IVG Immobilien AG, together with all major
than in the year 2001 Consolidated Financial Statements.
subsidiaries. These are the companies that fall, directly
Number of fully consolidated companies
Number of participating interests
valued at equity
Number of other affiliated companies
and participating interests
Total number of companies
Domestic
Foreign
Total as at
31.12.2002
Total as at
31.12.2001
98
89
187
167
5
1
6
8
70
15
85
132
173
105
278
307
NOTES
or indirectly, under IVG’s uniform control.
| 108 |
Six associated companies were valued at equity. The
acquisition cost and the attributable proportion of share-
total amount recognized as goodwill for these companies
holders’ equity is counted, in whole or in part, towards
is €15.0 million. One company valued at equity in 2001
the subsidiary’s assets. If there is a residual amount on
is now fully consolidated after acquisition of all voting
the assets side of the balance sheet, this is reported as
shares. 39 companies in which IVG has share holdings of
goodwill, and amortized on a scheduled basis in accord-
between 20% and 50% are not valued at equity either
ance with its anticipated useful life (normally 15 years).
because IVG does not exert a significant influence on
If the residual amount arising from capital consolidation
their affairs or because they are of minor significance for
is a liability, depending on its nature it is charged to the
conveying a true and fair view of the Group’s assets and
real estate assets item, or else added either to provisions
financial affairs.
or to reserves. The same consolidation principles apply
to shareholdings in associated companies valued at equity.
Comparability of the 2002 and 2001
Consolidated Financial Statements
Intra-Group lending and all other receivables, liabilities,
The consolidation changes made (excluding companies
turnover, expenses and income arising within the Group
consolidated for the first time) have had no significant
are eliminated. Deferred taxes arising from timing differ-
impact on the Group’s assets and profitability in the 2002
ences in the values that individual companies have re-
financial year.
ported in their commercial and tax financial statements
are lumped together with those arising in consolidation
Consolidation methods
processes, and are carried on the balance sheet as pro-
The capital of consolidated affiliated companies was in-
visions for taxes. Deferred taxes are computed on the
corporated into the Consolidated Financial Statements
basis of tax rates in force or expected to apply in the
up to 31 December 2000 according to the book-value
country concerned as of the balance-sheet date. Beyond
method, by offsetting the purchase prices of the sub-
that, all tax regulations in force or enacted by the balance-
sidiaries with the shareholders’ equity obtained by the
sheet date are observed.
parent company at the date when each affiliate was
acquired and/or was first consolidated. The capital of
Substantial intra-Group sales, both of properties and of
companies first consolidated on or after 1 January 2001
shares in property ownership companies, took place on
is incorporated into the Consolidated Financial State-
IVG’s domestic market in 2002. For purposes of simplifi-
ments by the fair purchase value method as at the date
cation, the resulting intra-Group book gains are neutral-
of acquisition in accordance with GAS 4. The compara-
ized by applying special depreciation allowances to other
tive figures for previous years have not been adjusted
assets, as provided by Sec. 6b of the Income Tax Act
retrospectively through reserves.
(EStG). Solely book gains on sales of properties that cannot be so treated under Sec. 6b and book gains on sales
Hidden reserves and encumbrances recognized on ap-
of shares are eliminated in the consolidated financial
plication of the fair purchase value method are counted
statements as intercompany profits.
towards the company’s equity. Any residual amount is
recognized as goodwill and invariably amortized over a
Other transactions between consolidated Group com-
useful life of 15 years.
panies are eliminated in IVG’s Consolidated Financial
Statements, in accordance with Sec. 304 of the Com-
For companies consolidated in earlier periods by the book-
mercial Code. Supplies and services are exchanged with-
value method, any discrepancy between a subsidiary’s
in the IVG Group at normal market terms and conditions.
| 109 |
Currency translation
and the net income for the year are translated at the
The balance sheets of foreign subsidiary companies have
average exchange rate during the year. Items falling
been translated into euros using the exchange rate on
under shareholders’ equity are translated at the historic
the balance-sheet date, while their income statements
exchange rates applying when these items were added to
have been translated at average exchange rates for the
the balance sheet. Discrepancies between these values
whole financial year. This means that assets, provisions
and those arrived at using the exchange rate on the bal-
and liabilities are all valued using the middle rate of ex-
ance-sheet date are added to or offset against revenue
change on the balance-sheet date. Income and expenses
reserves without affecting the income statement.
The exchange rates used for translation purposes were:
C U R R E N C Y T R A N S L AT I O N S
Currency
Country
€
€
€
Exchange
rate on
31.12.2002
Average
exchange rate
in 2002
Exchange
rate on 2001
1 GBP
United Kingdom
1.5373
1.5906
1.6434
100 SEK
Sweden
10.9256
10.9167
10.7513
100 HUF
Hungary
0.4232
0.4121
0.3899
100 PLN
Poland
24.8694
26.0132
28.6098
Currency translation differences are added to or offset against
revenue reserves without affecting the income statement.
Accounting and valuation policies
Property, plant and equipment is valued at the cost of
For the purposes of inclusion in these Consolidated
acquisition or construction and, where depreciable, re-
Financial Statements, the individual Group companies’
corded net of scheduled depreciation. The manufacturing
own financial statements are prepared according to the
costs of self-constructed assets also include a propor-
IVG Group’s accounting and valuation policies. This in-
tional allocation of overhead.
pared under other countries’ rules whenever they do not
As a general rule, buildings throughout the Group are
conform to the principles of the parent company and
depreciated on a straight-line basis, assuming a normal
substantial valuation differences arise.
useful life of either 50 or 66.67 years.
The »type of expenditure« (»cost summary«) presenta-
Movable assets are invariably depreciated over the short-
tion format is used for the income statement.
est useful life permissible under tax law in each instance,
using either the straight-line method or else the declining-
Intangible assets are valued at acquisition cost less sched-
balance method switching subsequently to straight-line;
uled depreciation charges.
additions made during the first half-year are depreciated
as if for a full year, while those made during the second
half are depreciated by half of the first year’s permissible
amount. Low-value assets are depreciated fully in the
NOTES
volves a process of adapting financial statements pre-
| 110 |
year of acquisition. They are recorded as additions in the
Provisions for pensions and similar obligations are re-
fixed assets movement schedule, and are always recorded
ported at the going-concern value. That going-concern
as disposals after their assumed useful life of four years
value is calculated on an actuarial basis using an interest
has elapsed.
factor of 6%, in accordance with Sec. 6a of the German
Income Tax Act (Einkommensteuergesetz – EStG). The
Shares in affiliated companies and other participating
provisions are calculated using Prof. K. Heubeck’s 1998
interests are recorded on the balance sheet at the lower
actuarial tables.
of their acquisition cost or current resale value. Shareholdings valued at equity are included in the Consolidated
Semiretirement pension obligations are reported at ac-
Financial Statements using the book-value method stipu-
tuarial present value (applying a 5.5% discount rate) in
lated in Sec. 312 (1) 1 of the Commercial Code. As a
analogy to Sec. 6a of the German Income Tax Act; em-
general rule, associated companies apply IVG’s account-
ployees not having signed a semiretirement pension
ing and valuation principles.
agreement are included in accordance with the ascertained probability of semiretirement being taken. The
Loans to employees – including interest-free and low-
payroll backlog is reported at nominal value.
interest loans – are booked at their nominal value. Longterm loans to affiliated companies or to companies linked
Provisions for taxes not only include deferred taxation
via participating interests are reported according to the
from Group companies’ individual financial statements,
lower-of-cost-or-market principle.
as provided by Sec. 274 of the Commercial Code, but
also deferred taxation arising from consolidation as per
Inventories are valued at the lower of their cost of acqui-
Sec. 306. All liabilities or entitlements associated with
sition or construction (the tax-law capitalization require-
the taxation of income, capital and asset values arising
ment) or their current market price. Raw materials and
during the financial year are fully accounted for in the
supplies are normally valued on the basis of updated
Consolidated Financial Statements, based on the tax
average acquisition costs. Work in progress, finished
regulations applying to individual Group companies.
goods and merchandise are valued at their cost of construction. In addition to unit material and production
Other provisions account for all recognizable risks and
costs, this is invariably also taken to include the proper
uncertain obligations to the full extent necessary, in line
allocation of material and production overheads and
with prudent business judgement.
depreciation charges.
Liabilities are reported as the amount due.
The principle of loss-free valuation has been observed.
Turnover is reported once supplies of goods and/or serFor receivables and other assets, recognizable risks are
vices have been completed and risk has passed to the
taken into account by writing down the individual items
customer. Turnover in project development is not de-
concerned. General bad-debt risk is adequately allowed
clared in the income statement until a contract is fulfilled
for by means of a lump-sum write-down on receivables.
or a distinct part of the work already performed for, or
delivered to, the customer can be billed.
Own shares held by the Group are reported at their
(below-cost) market value as of the balance-sheet date.
| 111 |
II. Notes to the Consolidated Balance Sheet and Income Statement
for the 2002 financial year
Consolidated balance sheet
The increase in other participating interests was primarily
due to the stake in the actioplus fund (€12.7 million). The
Movements in the individual items of fixed assets (dis-
disposals included the sale of IVG’s €5.7 million stake in
closed in the Consolidated Fixed Asset Schedule) are ac-
IABG.
counted for on the basis of their historic cost of acquisition or construction.
The long-term loans to companies linked via participating
interests chiefly involve a €52.7 million loan granted dur-
1. Intangible assets and property,
plant and equipment
ing the 2002 financial year to TARDIS Verwaltungsgesellschaft mbH & Co. KG, Munich, in connection with
Acquisition and production costs reported for intangible
the sale-and-leaseback transaction pertaining to MEDIA
assets and property, plant and equipment are historic
WORKS MUNICH.
costs, which in some cases originate from the deutschmark opening balance sheet of 1948.
The other long-term loans reported include a mortgagesecured loan from IHC (€44.8 million), a loan from IVG
Intangible assets include goodwill and patents, trade
Service GmbH to finance a shopping centre in Lodz
marks, licences and similar rights.
(€28.5 million), a deposit lodged by IVG Logistik GmbH
to finance property, plant and equipment (€9.1 million),
Property, plant and equipment consists of both real estate
housing loans provided to employees, and a loan granted
and movable items, also including advance payments
to the purchaser in the sale of the Talis group (€8.3 mil-
made and construction in progress.
lion). The full €19.9 million of the loan to the actioplus
fund reported in the 2001 financial year was paid back in
2. Financial assets
2002. In connection with the stake in FDV, loans totalling
The additions to shares in affiliated companies are a
€15.6 million were granted in 2002 to FDV Venture’s
result both of purchases of stakes in existing companies
subsidiary.
and the foundation of new ones.
Most of the €3.2 million in raw materials and supplies are
substantially due to reclassification of Bürohaus Schöne-
attributable to SWS GmbH (specifically, the Oberhausen
feld KG as a fully consolidated company. IVG’s share in
repair works). The Group’s work in progress (€32.5 mil-
FDV Venture S.A. (Luxembourg), a project development
lion) is largely connected with project development.
joint venture with AXA, was raised as the result of two
capital increases.
The updated valuation, using the equity method, of the
Group’s holdings in associated companies was €24.6 million as of the balance-sheet date.
NOTES
3. Inventories
The changes in the shares in associated companies are
| 112 |
4. Receivables and other assets
R E C E I VA B L E S € m
31.12.2002
31.12.2001
Trade receivables
(of which: amount not due for more than 1 year)
69.2
(4.3)
44.4
(3.9)
Receivables from affiliated companies
(of which: amount not due for more than 1 year)
64.9
(0.0)
91.4
(0.7)
Receivables from companies linked
(which: amount not due for more than 1 year)
47.6
(19.0)
40.5
(0.0)
Other assets
(which: amount not due for more than 1 year)
146.9
(10.4)
232.0
(11.2)
328.6
408.3
Most of the receivables from affiliated companies result
5. Own shares
from Group financial transactions. These primarily relate
IVG Immobilien AG once again issued shares to employ-
to IVG Hungaria (€26.2 million), IBG (€17.7 million) and
ees to allow them to accumulate financial assets. The
XXTRA KG (€12.1 million).
IVG VALUE programme continues to be as well received
as ever, with 50,600 shares issued to employees in
Receivables from companies linked via participating
2002. In this connection, 52,551 no-par-value shares
interests are mainly attributable to short-term loans
(2001: 124,751), constituting 0.05% of the total capital
(€13.7 million) by IVG Immobilien AG to Leibniz-Kolon-
stock, remained in the Group’s ownership on 31 De-
naden GmbH & Co. KG (Berlin) for the purposes of fund-
cember 2002.
ing capital investment. Receivables from TALIS Europe
GmbH (€6.2 million) and Tercon Bau (€9.4 million) are
6. Liquid funds
also reported in this item.
The item consists of cash in hand and bank accounts in
credit.
The »other assets« item includes indirect interests in
Wohnen am Märchenviertel KG K.u.K. Grundverwal-
7. Prepaid expenses
tungs GmbH & Co. (€39.5 million) and refund entitle-
This item primarily comprises payments made (€9.7 mil-
ments for overpaid taxes, totalling €38.6 million (2001:
lion) – mainly by Asticus GMS Ltd. (London) – which will
€ 35.0 million).
not be recognized as expense until later financial years.
It also contains deferred discounts on long-term bank
loans (€ 0.8 million).
| 113 |
8. Shareholders’ equity
CHANGE IN SHAREHOLDERS’ EQUITY € m
31.12.2002
Changes during the financial year
Reserve for
own shares
Use of
net income
Foreign
exchange
differences
31.12.2001
Other
changes
Subscribed capital
116.0
116.0
Additional paid-in capital
458.9
458.9
Revenue reserves
147.2
Consolidated net income
available for distribution
Minority interests
Minority share in net income
Total minority capital
Total shareholders’ equity
-0.9
4.3
1.6
26.3
115.9
39.4
39.4
8.5
0
0
-21.1
29.6
-0.6
0
0
0.9
-1.5
7.9
0
0
-20.2
28.1
4.3
1.6
6.1
758.3
769.4
-0.9
8.1 Subscribed capital
the German Securities Trading Act (Wertpapierhandels-
The capital stock of IVG Immobilien AG amounts to
gesetz – WPHG), WCM AG announced on 1 April 2002
€116,000,000.00, apportioned as 116 million no-par-
that its was entitled to 50.86%. A dependence report
value shares.
relating to WCM AG, this being the ultimate controlling
company, has therefore been submitted as required by
Categories of authorized capital in existence as of the
Sec. 312 of the Stock Corporations Law (AktG).
balance-sheet date:
8.2 Additional paid-in capital
Class I authorized capital
€24 million
Class II authorized capital
€9 million
Class III authorized capital
€24 million
Additional paid-in capital remains unchanged at
€458.9 million.
€4.3 million was transferred to other revenue reserves
ditional capital at its disposal for the event of a convert-
from IVG Immobilien AG’s net income for the year;
ible bond or warrant-linked bond issue, plus a total of
€0.9 million was withdrawn from the reserve for own
€5,848,856 in conditional capital to provide for subscrip-
shares, as holdings of such shares had decreased by
tion rights issued under stock options schemes.
31 December 2002. The revenue reserves include
€3.4 million in residual amounts arising from capital con-
SIRIUS Beteiligungsgesellschaft mbH (Wackerow) – an
solidation on the liabilities side.
87% subsidiary of WCM Beteiligungs- und GrundbesitzAktiengesellschaft (Frankfurt) – continues to hold 50%
A further €30.2 million was transferred from consolidated
of IVG Immobilien AG minus one voting share. After
net income to the other revenue reserves.
accounting for additional voting rights in accordance with
NOTES
8.3 Revenue reserves
IVG Immobilien AG additionally has €30 million in con-
| 114 |
8.4 Consolidated net income
10. Provisions
The 2002 consolidated net income of IVG Immobilien AG
Provisions have been made for all pension commitments
available for distribution was €39.4 million. The Board of
on an actuarial basis.
Management and Supervisory Board will propose to the
Annual General Meeting on 27 May 2003 that a dividend
Provisions for taxes have primarily been made to cover
of €0.34 (2001: €0.34) per no-par-value share be distrib-
the current year, earlier years for which tax liabilities
uted out of that sum.
have not yet been finally settled, and deferred taxes
(€34.5 million).
8.5 Minority interests
The main component of the interests of minority share-
Other provisions cover such matters as personnel ex-
holders in the equity of consolidated IVG Group com-
penses, outstanding suppliers’ invoices, omitted main-
panies (totalling €7.9 million) is their stake in Stodiek
tenance work, anticipated losses on pending transac-
Europa Immobilien AG (Bonn) and K. u. K. Zweite Grund-
tions, restructuring and potential litigation costs.
verwaltungs-GmbH & Co. Spreespeicher KG (Berlin).
Minority shareholders are entitled to a positive share of
€6.7 million is also included for land rehabilitation and
net income totalling €0.6 million.
other environmental measures. Additional provisions
9. Special tax-allowable reserves
accumulated losses revealed in the course of capital con-
The book profit arising from the disposal of real-estate
solidation; €2.0 million of these provisions was reversed
limited partnerships was placed in a tax-allowable reserve
and €2.8 million used in the 2002 financial year. Cumu-
as provided by Sec. 6b of the Income Tax Law (EStG),
lative utilization and reversals amounted to €7.5 million
and part of it redeployed in the purchase of other limited
by 31 December 2002.
of €12.3 million (originally €19.8 million) are made for
partnerships.
11. Liabilities
€m
Total as at
Up to 1 year
to maturity
Up to 5 years
to maturity
More than
5 years
to maturity
31.12.2002
Bank loans
Total as at
31.12.2001
1,906.1
250.5
1,085.1
570.5
1,908.1
Advance payments received for orders
15.3
12.7
2.6
0.0
2.6
Trade accounts payable
23.9
23.8
0.1
0.0
19.4
0.0
0.0
0.0
0.0
10.0
Liabilities to affiliated companies
16.2
16.2
0.0
0.0
11.8
Liabilities to companies linked
12.9
12.9
0.0
0.0
29.8
132.0
128.8
2.6
0.6
90.8
37.9
(37.9)
(0.0)
(0.0)
(11.4)
0.7
(0.7)
(0.0)
(0.0)
(0.8)
2,106.4
444.9
1,090.4
571.1
2,072.5
Liabilities on bills accepted and drawn
Other liabilities
(of which: tax liabilities)
(of which: for social security)
| 115 |
The bank loans are secured by mortgages on real estate
14. Other financial obligations
of €336.1 million and a pledged fixed-term deposit of
€2.2 million.
€m
12. Deferred income
31.12.2002
31.12.2001
This item consists primarily of earnings charged to future
Obligations from rental
and leasing agreements
periods under a sale-and-leaseback transaction covering
Due 2003 (31.12.01: 2002)
35.7
11.7
the majority of the Munich business park and of advance
Due 2004 – 2007
(31.12.01: 2003 – 2006)
53.4
28.0
Due after 2007
(31.12.01: 2006)
14.0
2.3
103.1
72.0
Undertaking to
contribute capital
16.5
17.1
Loan obligation
25.9
28.5
145.5
117.6
rent payments in the Real Estate Division.
13. Contingent liabilities
€m
31.12.2002
31.12.2001
Guarantees
355.6
259.3
Other contingent liabilities
242.5
86.5
598.1
345.8
€13.3 million of the undertaking to contribute capital
relates to associate FDV. Lease payments on longer-term
The »guarantees« category consists of guarantee obli-
obligations are discounted at 5.5%. In addition to the
gations IVG Immobilien AG has entered into with third
above obligations, there is another financial obligation of
parties on behalf of affiliated companies. The other con-
€62.9 million (discounted at 5.5%) resulting from a letter
tingent liabilities include IVG’s share of joint-and-several
of comfort issued by IVG Immobilien AG for a tenancy.
debt obligations to leasing companies which IVG subsidiary undertakings use to finance some of their invest-
15. Derivative financial instruments
ment; its obligation to pay residual-liability deposits in
The international focus of its operating business exposes
connection with the real-estate limited partnerships;
IVG Immobilien AG to interest-rate and exchange-rate
letters of comfort; and longer-term contingent liabilities,
risk. These risks are hedged using derivative financial
discounted at 5.5%, comprising option-writer’s liabilities
instruments. Risk of default and market risk were negli-
arising out of fund subscribers’ rights of return.
gible both in the year under review and the financial year
NOTES
preceding it.
| 116 |
The derivative financial instruments current as at the balance-sheet date were as follows:
NOMINAL AMOUNT € m
2002
2001
The nominal volume of the hedging contracts in the table
Interest-rate swaps
432.5
340.9
is not netted out. It is the total of all buy and sell amounts
Foreign exchange interest swaps
164.2
131.5
underlying the contracts.
596.7
472.4
Consolidated income statement
1. Turnover
3. Other operating income
Turnover includes net rental income, prepayments of
ancillary costs by tenants, and revenue from sales of
€m
development projects. In accordance with the German
Commercial Code, book gains on the sale of portfolio
properties are recognized not as turnover but as other
operating income.
Turnover is deemed to have been realized when performance has been rendered and the risk passed on. Turn-
2002
2001
Transfers from special
tax-allowable reserves
7.1
60.7
Disposals of property,
plant and equipment
191.6
50.2
Release of provisions
13.7
9.2
Other
13.5
17.5
225.9
137.6
over in project development is not declared in the income
statement until a contract is fulfilled or a distinct part of
the work has been handed over to the customer.
Intra-Group book gains included in other operating income
are neutralized by applying special depreciation allow-
A breakdown by divisions and regions is presented in
ances (€112.4 million) and transfers to special tax-allow-
Section IV (Key Figures by Segment) of these Notes.
able reserves (€14.0 million), as provided by Sec. 273 of
the Commercial Code in conjunction with Sec. 6b of the
2. Net decrease/increase in inventories of finished
German Income Tax Act (EStG).
goods, work in progress and work not yet billed
The changes in inventories of finished goods in project
4. Material expenses
development (minus €60.9 million) primarily result from
Material expenses (€72.8 million) chiefly derive from raw
the completion and sale of the Gresham Street project.
materials and supplies, from production inputs for the
completion of orders, and from purchased services. They
break down on a segmental basis to €29.1 million for
real estate portfolio management, €40.6 million for real
estate project development, and €3.1 million for noncore operations.
| 117 |
5. Personnel expenses
6. Depreciation and write-downs on intangible assets,
property, plant and equipment
€m
Wages and salaries
Social insurance levies,
and costs of retirement
pensions and other benefits
(of which:
for retirement pensions)
€m
2002
2001
43.2
39.1
Scheduled depreciation charges
Non-scheduled depreciation
or write-downs
8.9
9.2
(3.1)
(3.4)
52.1
48.3
Special depreciation
allowances permitted
by tax law
2002
2001
43.1
42.5
1.2
0.7
113.5
50.8
157.8
94.0
The increase in personnel expenses chiefly comprises
The write-downs were recognized for a German site due
a provision for semiretirement pensions (€3 million).
to sustained impairment losses.
The wages and salaries item includes employer’s match-
The special depreciation allowances arose under the
ing contributions to the »employee-loan« asset participa-
terms of Sec. 6b of the Income Tax Law (EStG).
tion model for employee wealth creation. The total cost
in the 2002 financial year was €42,000 (2001: €42,000).
Additional depreciation charged up to the end of 2002 as
permitted by tax law ultimately had a positive influence on
The costs of retirement pensions and other welfare bene-
the Group net income for the year, after taking account
fits include the pension entitlements of employees whose
of income taxes, amounting to €4.2 million.
contracts are made with IVG Immobilien AG arising from
a special contributory agreement with the state pension
The future tax burden resulting from the omission of
agency Versorgungsanstalt des Bundes und der Länder
otherwise scheduled depreciation charges is distributed
(VBL). The contribution rate applicable in 2002 was 7.86%
over a long future period based on the useful lives of the
of the wages and salaries covered by this supplementary
assets involved.
plan (€16.57 million); 6.45% is payable by the employer
and 1.41% by the compulsorily insured employees. The
1.60% of wages and salaries covered by the supplementary plan. According to VBL information dated 5 March
2003, some 645 former employees will be entitled to or
are already receiving supplementary pensions.
NOTES
employer must also pay an adjustment levy comprising
| 118 |
7. Other operating expenses
9. Financial earnings
The main items of other operating expenses
€m
(€153.1 million) are as follows:
€m
2002
2001
Other expenses*
72.8
47.6
Transfer to special
tax-allowable reserves
17.6
0.4
Maintenance and upkeep
17.0
17.9
Lease rentals payable
13.6
10.9
Auditing, consultancy
and legal fees
13.3
13.5
Cost of external services
7.7
8.7
Communication and marketing
5.3
4.5
Ground rents or lease payments
3.9
3.7
Travel expenses
1.9
1.9
153.1
109.1
2002
2001
Income from long-term loans
14.2
8.2
(of which: from
affiliated companies)
(0.2)
(0.7)
Other interest and
similar income
21.4
25.9
(of which: from
affiliated companies)
(2.1)
(0.04)
-3.8
-4.1
-127.7
-118.4
(-3.2)
(-5.4)
-95.9
-88.4
2002
2001
Income taxes
26.1
9.3
Other taxes
14.5
12.6
40.6
21.9
Write-downs on financial
assets and securities
available for sale
Interest and similar expenses
* This sub-item includes allocations to provisions, write-downs on
assets, write-ups on foreign currency liabilities, etc.
8. Income from participating interests
€m
Income from non-consolidated
affiliated companies
Income from associated
companies
Income from other
participating interests
2002
2001
1.5
4.6
-5.7
3.3
9.1
3.1
4.9
11.0
10. Taxation
€m
€2.7 million was transferred to the provision for deferred
taxes to provide for changes in accounting treatment in
subsidiary financial statements prepared for incorporation
The income from associated companies includes a loss of
€4,5 million after deferred taxes, arising on elimination
of intercompany profits.
(of which:
to affiliated companies)
into the consolidated accounts; €0.5 million of deferred
taxes were attributable to consolidation.
| 119 |
C O N S O L I D AT E D C A S H F L O W S T AT E M E N T € m
2002
Net income for the period, before extraordinary items
2001
70.4
68.1
161.5
97.8
22.2
-55.9
-180.7
-50.0
-12.3
-0.2
60.4
-2.0
8.8
75.0
108.1
5.4
Cash provided by operating activities
238.4
0.0
138.2
Proceeds from the disposal of property, plant and equipment/intangible fixed assets
283.3
56.1
Cash used for investments in property, plant and equipment/intangible fixed assets
-217.0
-312.3
+/- Depreciation and write-ups/write-downs on fixed assets
+/- Other non-cash items
– Profits from the disposal of fixed assets
-/+ Decrease/increase in provisions
+/- Inventories (increase/decrease)
+/- Receivables and other assets (decrease/increase)
+/- Trade accounts payable/other liabilities (increase/decrease)
39.2
96.4
-147.5
-97.9
-42.0
0.0
-257.7
0.0
0.0
-39.4
-38.3
104.9
420.0
-152.8
-298.0
Cash used for/provided by financing activities
-85.3
0.0
83.7
Net change in cash and cash equivalents
111.1
-35.8
0.1
16.2
Cash and cash equivalents at the start of the period
20.2
39.8
Cash and cash equivalents at the end of the period
131.4
0.0
20.2
Proceeds from the disposal of financial assets
Cash used for investments in financial assets
Cash used for investing activities
Proceeds from capital increase
– Payments made to IVG shareholders and other equity partners
Proceeds from new borrowing
Payments to service existing loans
Cash and cash equivalents generated by consolidation changes
The cash flow statement has been broken down to cover
combined with additions to and disposals of property,
cash used for and provided by operating, investing and
plant and equipment. Cash and cash equivalents are
financing activities. The effects of consolidation changes
defined in the same way as liquid funds.
have been eliminated; their effect on cash and cash
equivalents is shown separately. For reasons of material-
€2.2 million of cash and cash equivalents is pledged as
ity, additions to and disposals of intangible assets are
security.
NOTES
Changes in current assets and liabilities
| 120 |
IV. Key Figures by Segment
€m
Intersegmental
turnover
External
turnover
Total operating
performance
Operating
Earnings
2002
2001
2002
2001
2002
2001
2002
2001
Real estate portfolio management
1.6
1.3
235.8
223.0
426.6
354.4
157.6
181.0
Other/consolidation
0.0
0.0
46.9
46.5
47.2
46.8
16.9
16.1
Total real estate portfolio management
1.6
1.3
282.7
269.5
473.8
401.2
174.5
197.1
Real estate project development
2.6
0.3
160.6
21.6
113.4
57.3
52.4
3.5
Other/consolidation
0.0
0.0
1.1
0.0
1.5
0.2
-12.1
-3.6
Total real estate project development
2.6
0.3
161.7
21.6
114.9
57.5
40.3
-0.1
Total non-core operations
0.0
0.0
25.4
25.9
59.1
27.7
28.4
2.0
Corporate functions/consolidation
0.0
0.0
1.4
2.2
-10.0
0.2
-54.5
-33.2
471.2
319.2
637.8
486.6
188.7
165.8
Group
The segmental breakdown shows the performance of
The Corporate Functions category includes activities not
the Group’s various types of operations. The operational
shown elsewhere, plus consolidation effects.
and regional segmentation is based on internal reporting,
in which the primary focus is on core activities.
The »operating earnings« item is net income from ordinary activities minus net interest payable, plus other
The Portfolio Management segment comprises the activ-
taxes. The »assets« item is total assets less loans to
ities relating to the real estate portfolio in Germany and
affiliated companies, receivables from affiliated com-
abroad, including project development within the Group’s
panies, and liquid funds. The »liabilities« item includes,
portfolio, plus caverns and tank farms.
without liabilities to affiliated companies, provisions for
pensions, other provisions, and deferred income. The
The Project Development segment includes the Funds
»investment« item also includes investments in financial
business sector in addition to conventional real estate
assets.
project development.
The average number of employees for the companies
The Non-Core Operations segment incorporates the
consolidated into the IVG Group comprises 524 salaried
remaining operations of the Rail business sector.
staff and 226 trade employees. The IVG Group had
33 trainees as at 31 December 2002 (31 December
2001: 33).
| 121 |
Assets (at
book value)
Depreciation
and write-downs
Liabilities
Income
from associated
companies
Income from
other participating interests
Investment
Employees
2002
2001
2002
2001
2002
2001
2002
2001
2002
2001
2002
2001
2002
2001
2,448.8
2,437.0
932.7
816.7
147.0
84.4
-0.3
-0.4
4.2
7.2
189.6
380.0
348
359
62.4
64.9
7.9
7.3
4.7
4.4
0.0
0.0
0.0
0.0
3.0
1.3
2,511.2
2,501.9
940.6
824.0
151.7
88.8
-0.3
-0.4
4.2
7.2
192.6
381.3
348
359
241.8
217.7
89.5
126.8
3.2
1.3
-2.0
0.3
6.4
1.3
79.1
37.5
125
124
73.1
72.1
7.7
5.3
1.3
0.1
-3.7
3.4
0.0
2.0
1.5
0.2
314.9
289.8
97.2
132.1
4.5
1.4
-5.7
3.7
6.4
3.3
80.6
37.7
125
124
38.7
34.4
14.1
10.0
2.8
3.6
0.0
0.0
0.0
0.0
12.4
0.8
126
130
122.8
78.6
1,262.8
1,176.4
2.6
4.2
0.3
0.0
0.0
-2.8
72.7
12.4
151
150
2,987.6
2,904.7
2,314.7
2,142.5
161.6
98.0
-5.7
3.3
10.6
7.7
358.3
432.2
750
763
Regions
GEOGRAPHICAL SEGMENTS € m
UK
France
Benelux
Germany
Other
Countries
Corporate
Group
External turnover
154.8
21.4
62.6
206.2
26.2
471.2
Assets (at book value)
210.7
258.5
821.4
1.248.9
448.1
2,987.6
44.1
0.4
15.3
245.6
52.9
358.3
Investment
The segmental breakdown into regions reflects the
NOTES
geographical location of IVG’s real estate holdings.
| 122 |
V. Other Disclosures
Total remuneration of the Supervisory Board and
The options scheme is open to members of the Board of
Board of Management, and loans granted
Management of IVG Immobilien AG, general managers
The remuneration paid to members of the Board of Man-
of affiliated companies, and other employees. The Board
agement of IVG Immobilien AG in the 2002 financial year
of Management (and the Supervisory Board in respect of
was €2.106 million, comprising €0.934 million in salaries
the Board of Management’s options) have been author-
and €1.173 million in performance-linked bonuses. Re-
ized to issue non-transferable subscription rights to mem-
muneration paid at IVG Immobilien AG to retired mem-
bers of the aforementioned groups under the adopted
bers of the Board of Management, general managers and
share options scheme. The scheme was made use of for
their surviving dependants was €0.584 million.
the first time in 2002, when 766,350 such options were
issued.
A provision of €5.383 million has been made for pension
obligations to former members of the Board of Manage-
Scheme participants are required to pay a price of €10.28
ment, general managers and their surviving dependants.
per IVG share for options issued in 2002 under the terms
and conditions for the new options scheme. This price
Total remuneration paid to members of the Supervisory
is the average (arithmetic mean) of the price quoted for
Board at IVG Immobilien AG amounted to €0.150 million
IVG shares in the closing auction of Xetra trading on the
in the 2002 financial year.
Frankfurt stock exchange over the twenty trading days
immediately preceding the issue date (26 July 2002).
No advances or loans had been granted to members of
the Board of Management as at 31 December 2002. Simi-
The share options are valid for five years ending on
larly, no advances or loans had been made to members
25 July 2007. The subscription rights cannot be exer-
of the Supervisory Board.
cised before expiry of a two-year blocking period on
26 July 2004.
The Annual General Meeting of 23 May 2002 approved
a new share options scheme, the first of its kind at IVG
As an additional precondition for exercising the subscrip-
to be open to senior managers of foreign branch offices
tion rights, the price quoted for IVG shares in the closing
within the IVG Group. For this purpose, a resolution
auction of Xetra trading on the Frankfurt stock exchange
was adopted to create €4,800,000 in conditional capital.
on the trading day immediately preceding the date of
This capital serves the sole purpose of issuing up to
exercise must exceed a specified threshold.
4,800,000 ordinary (no-par-value) shares to provide for
subscription rights under the share options scheme oper-
This threshold is as follows:
ated by IVG Immobilien AG.
• From 26 July 2004: €11.31
• From 26 July 2005: €11.82
• From 26 July 2006 to the end of the validity period of
the option rights: €12.34.
| 123 |
The insider-trading rules, which forbid the exploitation of
Transactions with shareholders, members of the
an information advantage based on as-yet unpublished
Supervisory Board, and members of the Board of
facts, apply to the scheme participants in full.
Management
SIRIUS GmbH (Wackerow) has notified us that it con-
On the balance-sheet date, members of the Board of
tinues to hold 50% of IVG Immobilien AG minus one
Management held non-transferable subscription rights
share. A majority share in SIRIUS GmbH is held by WCM
under the 1999, 2000 and 2001 share options schemes
AG, Frankfurt. We had no business dealings with either
(which remain in force under their original terms and
company in the 2002 financial year.
conditions, the conditions of which were published in
each financial year) and under the 2002 options scheme
There were similarly no business dealings with members
to 644,991 ordinary shares in IVG Immobilien AG.
of the Supervisory Board or members of the Board of
Management.
Corporate Governance
Corporate governance refers to the entire system by
Bonn, 18 March 2003
which a company is managed and monitored, its corporate principles and guidelines, and the system of
internal and external controls and supervision to which
the company’s operations are subjected. Good, transparent corporate governance ensures that our company
will be managed and monitored in a responsible manner
geared to value creation. This fosters the confidence of
investors, employees, business associates and the
general public in IVG’s management and supervision.
A declaration of compliance with the recommendations
of the German Corporate Governance Code has been
Bernd Kottmann
Dirk Matthey
submitted in accordance with Sec. 161 of the German
Stock Corporations Act (Aktiengesetz – AktG) and has
web site (www.ivg.de) since December 2002.
NOTES
been available for viewing by shareholders on the IVG
Report of
the Supervisory Board
Spreespeicher, Berlin
REPORT OF THE
SUPERVISORY BOARD
| 126 |
Report of the Supervisory Board
Dear Reader,
Supervisory Board and committee meetings
In accordance with the Industrial Constitution Act (Be-
On this and the following pages, the Supervisory Board
triebsverfassungsgesetz) of 1952, the Supervisory Board
reports on its activities in the 2002 financial year, de-
is composed of four shareholder representatives and
scribing its constant communication with the Board of
two employee representatives. The Supervisory Board’s
Management and the focal points of Supervisory Board
Personnel Committee is empowered to take decisions
meetings including its scrutiny of the annual and con-
affecting the contracts of the managing directors of IVG
solidated financial statements.
Immobilien AG, and regarding all other personnel matters
referred to the Supervisory Board by statutory require-
The Supervisory Board performed its duties over the
ment. No other committees have been formed. Six Super-
2002 financial year as stipulated by law and by the IVG
visory Board meetings were held in the 2002 financial
Articles of Association. It supported the Board of Man-
year, in each instance with all current members of the
agement in managing the company and oversaw the
Supervisory Board in attendance. The Personnel Com-
running of the company’s affairs. The Supervisory Board
mittee dealt with matters within its remit in two cases.
was directly involved in all fundamental decisions.
Main topics discussed by the Supervisory Board
The Board of Management has provided the Supervisory
At each of its meetings, the Supervisory Board dis-
Board with full, regular, timely, written reporting on all
cussed the turnover, earnings and financial position to-
matters relating to the company’s business, covering in
gether with personnel changes within the Group and
particular corporate, personnel and financial planning, the
the various segments. At two meetings, the Supervisory
Group’s situation including appraisal of the risk position
Board dealt with implementation of the German Cor-
and risk management, and progress on investment pro-
porate Governance Code at IVG Immobilien AG. At its
jects. The Board of Management explained all significant
meeting of 7 November 2002, the Supervisory Board
transactions with reference to reports at Supervisory
adopted revised Terms of Reference for the Board of
Board meetings. The Chairman of the Supervisory Board
Management and adopted Terms of Reference for the
also remained in regular contact with and was kept up
Supervisory Board.
to date and informed on significant transactions by the
Board of Management outside of Supervisory Board
The Supervisory Board discussed the medium-term plans
meetings.
for 2002/2004 and 2003/2005 together with long-term
corporate strategy at two meetings. It approved investments supplementing the real estate portfolio in Frankfurt, Hamburg and London. It also approved the continuation of development projects in Berlin and Frankfurt.
| 127 |
At several of its meetings, the Supervisory Board dis-
Annual financial statements
cussed the progress of negotiations for privatization of
The annual financial statements of IVG Immobilien AG
the Berlin airports system and construction of the new
and the consolidated financial statements for the year
Berlin Brandenburg International Airport (BBI). Opportuni-
ended 31 December 2002 as submitted by the Board of
ties were taken to make sales in certain regional markets,
Management have been duly audited, together with the
realizing value gains. The Supervisory Board approved
Board of Management’s report on the business situation
sales of properties in Düsseldorf, Hamburg, London,
of the Company and the Group (the Management Report)
Milan, Munich and Paris. It also approved disposal of the
for the 2002 financial year, by PwC Deutsche Revision
TALIS Europe GmbH road tanker business and of IVG’s
Aktiengesellschaft, Wirtschaftsprüfungsgesellschaft, of
remaining shares in IABG Industrieanlagen-Betriebsgesell-
Düsseldorf, who have awarded a clean auditors’ certifi-
schaft mbH.
cate in each case. The chief auditor was present at our
meeting to discuss the company’s and the consolidated
The Supervisory Board held in-depth discussions at its
financial statements on 28 March 2003. He gave an ex-
meeting on 25 March 2002 regarding authorization of the
tensive account of the conduct and findings of the audit,
company to purchase its own shares and the creation of
and was available to provide additional information.
conditional capital. The proposed resolutions were adopted with a large majority at the Annual General Meeting
The Supervisory Board has scrutinized the two sets of
on 23 May 2002.
financial statements, the Management Report and the
proposed appropriation of net income. It concurs with
Further resolutions adopted by the Supervisory Board
the findings of the audit and, following the conclusive
approved an increase in IVG’s stake in project company
findings of its own examination, it has no objections to
AIRRAIL center frankfurt Verwaltungsgesellschaft mbH
any of these documents and reports.
ition of a further 8% in Stodiek Europa Immobilien AG,
The report on relations with affiliated companies pre-
and the establishment of IVG Immobilien Kapitalanlage-
pared by the Board of Management for the year 2002 in
gesellschaft mbH for the initiation of IVG real estate funds.
compliance with Sec. 312 of the German Stock Corporations Act (AktG) was supplied to the Supervisory Board
along with the auditor’s appraisal of it. The Supervisory
Board has itself examined the Board of Management’s
report, and has approved it together with the auditor’s
findings. The auditor’s certificate for the Board of Management’s dependent company report reads as follows:
REPORT OF THE
SUPERVISORY BOARD
& Co. Vermietungs KG from 33.3% to 50%, the acquis-
| 128 |
»Having examined and appraised this report as by duty
Composition of the Supervisory Board
bound, we hereby confirm that:
Franz Florian left the Supervisory Board on 30 June 2002
due to the sale of TALIS Europe GmbH. Rainer Antons
1. he facts stated in the report are correct
was appointed by court order to succeed him as employee representative on 5 September 2002. On the share-
2. the Company did not render unduly high remuneration
holders’ side, Franz-Josef Seipelt resigned his seat on
in any of the legal transactions documented in the
the Supervisory Board with effect from 31 January 2003.
report.«
He was succeeded as shareholder representative by
Dr Michael Albertz, appointed by court order effective
In its conclusive findings from its own examination, the
1 February 2003. The Supervisory Board would like to
Supervisory Board has no objections to make to the
express its gratitude to the retiring members for their
Board of Management’s declaration on relations with
constructive and authoritative input.
affiliated companies covering the financial year 2002.
The Supervisory Board wishes also to thank the Board of
At its meeting on 28 March 2003, the Supervisory Board
Management, the Group’s employees and their employee
issued its approval of the financial statements prepared by
representatives for their work in the 2002 financial year.
the Board of Management, which are therefore deemed
final. It also concurred with the Board of Management’s
proposed appropriation of net income, and finalized the
motions to be put to the Annual General Meeting.
Bonn, 28 March 2003
On behalf of the Supervisory Board:
Roland Flach
Chairman
| 129 |
Report of the Auditors of the
Consolidated Financial Statements
We have audited the consolidated financial statements
primarily on a test basis within the framework of the
(comprising the consolidated balance sheet, consolidated
audit. The audit includes assessing the annual financial
income statement, the notes to the consolidated financial
statements of the companies included in consolidation,
statements) and the group management report of IVG
the determination of the companies to be included in
Immobilien AG, Bonn, for the business year from 1 Janu-
consolidation, the accounting and consolidation principles
ary to 31 December 2002. The preparation of the consoli-
used and significant estimates made by the company’s
dated financial statements and the group management
Board of Managing Directors, as well as evaluating the
report in accordance with German commercial law are
overall presentation of the consolidated financial state-
the responsibility of the company’s Board of Managing
ments and the group management report. We believe
Directors. Our responsibility is to express an opinion on
that our audit provides a reasonable basis for our opinion.
the consolidated financial statements and the group
management report based on our audit.
Our audit has not led to any reservations.
We conducted our audit of the consolidated annual fi-
In our opinion, the consolidated financial statements give
nancial statements in accordance with Sec. 317 of the
a true and fair view of the net assets, financial position
German Commercial Code (HGB) and German generally
and results of operations of the Group in accordance with
accepted standards for the audit of financial statements
German principles of proper accounting. On the whole
promulgated by the Institut der Wirtschaftsprüfer in
the group management report provides a suitable under-
Deutschland (IDW). Those standards require that we plan
standing of the Group’s position and suitably presents
and perform the audit such that misstatements material-
the risks of future development.
ly affecting the presentation of the net assets, financial
position and results of operations in the consolidated financial statements in accordance with German principles
of proper accounting and in the group management report
Düsseldorf, 18 March 2003
the business activities and the economic and legal envir-
PwC Deutsche Revision Aktiengesellschaft
onment of the company and evaluations of possible mis-
Wirtschaftsprüfungsgesellschaft
statements are taken into account in the determination
of audit procedures. The effectiveness of the accountingrelated internal control system and the evidence supporting the disclosures in the consolidated financial state-
Kaiser
ppa. Leifels
ments and the group management report are examined
(German Chatered
(German Chatered
Accountant)
Accountant)
AUDITORS’ REPORT
are detected with reasonable assurance. Knowledge of
| 130 |
Summary of
Major Shareholdings
as at 31 December 2002
C O M PA N Y
Proportion of
capital held
Voting
rights
Shareholders’
equity
Net
income
%
%
€ ,000
€ ,000
695,812
42,885
80
80
9,222
4,202
100
100
37,918
4,697
I. Affiliated companies (consolid. as per Sec. 271 (2) of the German Commercial Code)
TERCON Immobilien Projektentwicklungsgesellschaft mbH, Munich
IVG Management GmbH, Bonn
Bonn I – Objekt Zanderstraße – KG, Bonn
100
100
275
926
MMD Bauträgergesellschaft mbH, Bonn
100
100
1,169
1,003
JOBAU Immobilienmanagement GmbH, Jena
BURG Grundstücksverwaltung GmbH & Co. Ristamos KG, Berlin
IVG Immobilien GmbH & Co. Bonn XIV – Objekt Heltorfer Strasse – KG, Bonn
100
100
1,178
330
94.59
94.59
-5,846
2,420
1,052
100
100
353
IVG Immobilienentwicklungsgesellschaft mbH & Co. – Objekt Hamburg Glinde – KG, Hamburg 100
100
-204
255
IVG Management GmbH & Co. Liebenau VIII – Objekt Bomlitz – KG, Liebenau
100
100
774
267
IVG Immobilien GmbH & Co. München I – Objekt Oberhausen – KG, Munich
100
100
161
36
IVG Immobilien GmbH & Co. Liebenau II – Objekt Dörverden – KG, Liebenau
100
100
102
115
IVG Immobilien GmbH & Co. Liebenau III – Objekt Liebenau – KG, Liebenau
100
100
1,198
29
IVG Management GmbH & Co. Liebenau IX – Objekt Clausthal – KG, Liebenau
100
100
113
27
IVG Immobilien GmbH & Co. Bonn XIII – Objekt Düsseldorf Karl-Arnold-Platz KG, Düsseldorf
100
100
51
1,175
IVG Immobilien GmbH & Co. Liebenau IV – Objekt Dragahn – KG, Liebenau
100
100
-151
71
IVG Immobilien GmbH & Co. Liebenau V – Objekt Bremen-Blumenthal – KG, Liebenau
100
100
-100
-97
IVG Immobilien GmbH & Co. Bonn II – Objekt Bad Godesberg – KG, Bonn
100
100
390
164
IVG Immobilien GmbH & Co. Liebenau VI – Objekt Leese – KG, Liebenau
100
100
87
12
IVG Immobilien GmbH & Co. München II – Objekt Unterpfaffenhofen – KG, Munich
100
100
157
100
IVG Immobilien GmbH & Co. München XII – Objekt Rosenheim – KG, Munich
100
100
1,210
-60
IVG Immobilien GmbH & Co. München III – Objekt Ottobrunn – KG, Munich
100
100
15,505
11,634
IVG Immobilien GmbH & Co. München IV – Objekt Dornach – KG, Munich
100
100
8,585
1,812
IVG Immobilienentwicklungsgesellschaft mbH & Co. –
Objekt Hamburg Raboisen 6 – KG, Hamburg
100
100
380
-218
IVG Immobilien GmbH & Co. München VI – Objekt Puchheim – KG, Munich
100
100
10,456
1,563
IVG Immobilien GmbH & Co. München VIII – Obj. Rosenh./Anz. Str. – KG, Munich
100
100
23,976
36,813
IVG Nordostpark I GmbH & Co. KG, Nuremberg
100
100
2,997
-13
IVG Nordostpark II GmbH & Co. KG, Nuremberg
100
100
9,210
75
IVG Nordostpark III GmbH & Co. KG, Nuremberg
100
100
3,677
52
IVG Nordostpark IV GmbH & Co. KG, Nuremberg
100
100
3,213
37
IVG Businesspark Media Works Munich I GmbH & Co. KG, Munich
100
100
13,938
-14
2,814
IVG Immobilien GmbH & Co. München X – Objekt Nürnberg – KG
100
100
26,523
IVG Businesspark Media Works Munich II GmbH & Co. KG, Munich
100
100
23,484
33
IVG Businesspark vor München I GmbH & Co. KG, Munich
100
100
17,176
110
IVG Businesspark vor München II GmbH & Co. KG, Munich
100
100
38,475
171
IVG Businesspark vor München III GmbH & Co. KG, Munich
100
100
11,087
-31
IVG Businesspark vor München IV GmbH & Co. KG, Munich
100
100
8,394
225
IVG Businesspark vor München V GmbH & Co. KG, Munich
100
100
14,805
-13
IVG Management GmbH & Co. Liebenau X – Objekt Hess.-Lichtenau – KG, Liebenau
100
100
-510
-39
IVG Management GmbH & Co. Liebenau XI – Objekt Lippoldsberg – KG, Liebenau
100
100
43
141
IVG Immobilienverwaltung Bonn GmbH & Co. Objekt Langen KG, Bonn
100
100
320
-256
IVG Immobilien GmbH & Co. Bonn XI, Objekt Frankfurt Flughafen KG, Bonn
100
100
51
518
IVG Immobilienverwaltung Bonn GmbH & Co. – Objekt Bremerhaven – KG, Bonn
100
100
2,316
-24
IVG Immobilien GmbH & Co. Bonn IX – Objekt Dorsten/Rödermark – KG, Bonn
100
100
51
1,266
IVG Management GmbH & Co. Liebenau XII – Objekt Fienerode – KG, Bonn
100
100
1,590
-59
IVG Immobilien GmbH & Co. Bonn XII – Objekt Dortmund Westfalendamm – KG, Bonn
100
100
34.345
220
| 131 |
%
Voting
rights
%
Shareholders’
equity
€ ,000
Net
income
€ ,000
IVG Immobilien GmbH & Co. Bonn VII – Objekt Dortmund, Stockholmer Allee – KG, Bonn
100
100
337
949
IVG Immobilien GmbH & Co. Bonn VI – Objekt Düsseldorf – Grafenberg – KG, Bonn
100
100
7,079
1,922
IVG Immobilien GmbH & Co. Bonn IV – Objekt Düsseldorf, Hohenzollernwerk – KG, Bonn
100
100
42
-8
IVG Immobilien GmbH & Co. Bonn V – Objekt Homburg/Saar – KG, Bonn
100
100
1,195
-29
IVG Immobilien GmbH & Co. Kassel VII – Objekt Hannover – KG, Kassel
100
100
3,721
-430
IVG Immobilien GmbH & Co. Hamburg I – Objekt Essener Str. – KG, Kassel
100
100
4,729
1,070
IVG Immobilien GmbH & Co. Hamburg II – Objekt Tarpen – KG, Hamburg
100
100
67
11
IVG Immobilien GmbH & Co. Hamburg V – Objekt Habichtstr. – KG, Hamburg
100
100
11,437
198
IVG Immobilien GmbH & Co. Berlin VIII – Objekt Neue Spreespeicher Cuvryhof – KG, Schönefeld 100
100
8,016
-433
IVG Immobilien GmbH & Co. Liebenau VII – Objekt Krümmel – KG, Liebenau
100
100
-157
-10
IVG Immobilienentwicklungsgesellschaft mbH & Co – Objekt
Hamburg Ferdinandstraße 18 – KG, Hamburg
100
100
-418
-196
IVG Schönefeld I GmbH & Co. KG, Berlin
100
100
32,363
-24
IVG Schönefeld II GmbH & Co. KG, Berlin
100
100
2,511
-3
IVG Businesspark Micropolis Ost Verwaltungs GmbH & Co. KG, Dresden
100
100
12,515
-19
IVG Businesspark Micropolis Ost Grundstücks GmbH & Co. KG, Dresden
100
100
2,079
-4
IVG Management GmbH & Co. Berlin IX – Objekt Wohnpark Lückstraße – KG, Berlin
100
100
8,400
382
IVG Immobilien GmbH & Co. Kassel VIII – Objekt Fuldabr.-Ostr. – KG, Kassel
100
100
1,433
410
IVG Immobilien GmbH & Co. Kassel IX – Objekt Waldau – KG, Kassel
100
100
3,032
1,413
IVG Immobilien GmbH & Co. Kassel XI – Obj. Lohfeld./Forstbachweg – KG, Kassel
100
100
2,022
221
IVG Immobilien GmbH & Co. Kassel X – Objekt Lohfeld./Otto-H.Str. – KG, Kassel
100
100
5,430
1,236
IVG Immobilien GmbH & Co. Dresden I – Objekt Klotzsche West – KG, Dresden
100
100
8,124
215
IVG Immobilien GmbH & Co. Dresden II – Objekt Klotzsche Ost – KG, Dresden
100
100
9,467
-25
IVG Immobilien GmbH & Co. Kassel XII – Obj.Fuldabr./-Crumb.Str. – KG, Kassel
100
100
3,107
486
IVG Immobilien GmbH & Co. Kassel XIII – Objekt Falderbaumstr. – KG, Kassel
100
100
791
63
IVG Immobilien GmbH & Co. Berlin II – Objekt Streitstraße – KG, Berlin
100
100
140
-2,288
IVG Immobilien GmbH & Co. Bonn X – Objekt Wiesbaden – KG, Bonn
100
100
35
281
IVG Immobilien GmbH & Co. Berlin IV – Objekt Montanstr. – KG, Berlin
100
100
1,130
645
IVG Immobilien GmbH & Co. Berlin V – Objekt Freiheit – KG, Berlin
100
100
294
485
IVG Immobilien GmbH & Co. Berlin VI – Objekt Hallerstr. – KG, Berlin
100
100
19
110
IVG Immobilien GmbH & Co. Berlin VII – Objekt Haller./Morsestr. – KG, Berlin
100
100
13,719
228
IVG Service GmbH, Bonn
100
100
21,293
-3,285 4)
IVG Immobilienentwicklungsgesellschaft mbH & Co. – Glockengießerwall 19 – KG, Hamburg
100
100
-117
Párizs 2000 Investitions und Immobilien-Vertriebs GmbH, Budapest
100
100
1,504
-390 3)
IVG Logistik GmbH, Bonn
100
100
100,196
43,253 4)
IVG InfoTec GmbH & Co KG, Bonn
100
100
2,982
295
IVG Schienenfahrzeuge GmbH & Co Güterwagen KG, Bonn
100
100
2,555
19,252
10,727
144
IVG Schienenfahrzeuge GmbH & Co Kesselwagen KG, Bonn
100
100
1,022
IVG Tanklager Silesia, Radzionków, Poland
100
100
18,196
1,794
Stodiek Europa Immobilien AG, Bonn
94.43
94.43
84,136
1,288
Property Security Belgium SA, Ixelles (Brussels)
95.82
95.82
13,962
1,075
Stodiek Immobilien- und Verwaltungs GmbH, Bonn
94.43
94.43
26
0
Stodiek Wohnpark Kaarst GmbH & Co KG, Bonn
94.43
94.43
-426
-395
Stodiek Ariane I S.A., Luxembourg
94.43
94.43
3,622
293 3)
Stodiek Ariane II S.A., Luxembourg
94.43
94.43
3,354
197 3)
Stodiek Ariane III S.A., Luxembourg
94.43
94.43
2,685
105 3)
Stodiek ESPANA S.A., Madrid, Spain
94.43
94.43
11,236
1,139 3)
Stodiek Immobilien GmbH & Co. – Objekt München I – KG, Bonn
94.43
94.43
51
343
SUMMARY OF
MAJOR SHAREHOLDINGS
C O M PA N Y
Proportion of
capital held
| 132 |
C O M PA N Y
Proportion of
capital held
Voting
rights
Shareholders’
equity
Net
income
%
%
€ ,000
€ ,000
Stodiek London GmbH, Bonn
94.43
94.43
520
12 3)
Stodiek Italia S.r.l., Milan
94.48
94.48
8,240
281 3)
Stodiek Lisboa - Promocao e Construcao de Imóveis, S.A., Lisbon
94.43
94.43
235
163 3)
Stodiek France SAS, Paris
94.43
94.43
-200
792 3)
Stodiek Immobiliare S.r.l., Milan
94.48
94.48
12,836
-98 3)
SCI 121/123 Rue d'Aguesseau, Paris
94.43
94.43
-784
-774 3)
Stodiek Inmobiliaria, S.A., Madrid
94.43
94.43
4,692
138 3)
Stodiek Portugal - Sociedade Imobiliaria, S.A., Lisbon
94.43
94.43
2,472
-37 3)
100
100
-2,085
-942 3)
IVG European Real Estate S.A., Brussels
IVG European Properties AB, Göteborg, Sweden
100
100
81,100
29,962 3)
Asticus AB, Göteborg, Sweden
100
100
136,559
-577 3)
Ada SA, Brussels
100
100
-264
-19 3)
Asticus Belgium II SA, Brussels
100
100
514,846
21,284 3)
Asticus Belgium SA, Brussels
100
100
395,605
-33 3)
Asticus Europe GIE, Brussels
100
100
0
0 3)
Beaulieu SPV SA, Brussels
100
100
47
-5 3)
Beeda SA, Brussels
100
100
-271
-20 3)
Bolet SA, Brussels
100
100
3,160
-194 3)
Bonne Odeur SA, Brussels
100
100
10,005
654 3)
Bosquet Immobilière SA, Brussels
100
100
14,276
733 3)
Ceda SA, Brussels
100
100
-258
-19 3)
Demot SPV SA, Brussels
100
100
91
-1 3)
Ekster SA, Brussels
100
100
50,150
1,172 3)
Gertrud SA, Brussels
100
100
20,442
470 3)
Groenhoek SA, Brussels
100
100
4,811
-135 3)
Hibou SA, Brussels
100
100
12
-5 3)
Immobilière Groenveld SA, Brussels
100
100
12,819
1,009 3)
Immobilière Tour Leopold SA, Brussels
100
100
9,562
3,949 3)
Kobben SA, Brussels
100
100
34,566
1,669 3)
Kolla SA, Brussels
100
100
23,533
923 3)
Korpen SA, Brussels
100
100
527
1,527 3)
Madou Plaza SA, Brussels
100
100
29,303
-1,477 3)
Praten SA, Brussels
100
100
899
518 3)
Slot SA, Brussels
100
100
15,354
-766 3)
Spannen SA i.L., Brussels
100
100
59,501
-18 3)
Spoor SA, Brussels
100
100
10,869
507 3)
Storken SA i.L., Brussels
100
100
26,700
-65 3)
Svanen SA, Brussels
100
100
-6,141
-132 3)
Valen SA, Brussels
100
100
12,718
506 3)
Varla SA, Brussels
100
100
5,243
263 3)
Zesmeer SA, Brussels
100
100
11,009
237 3)
Cabrera SA, Luxembourg
100
100
-8,265
-406 3)
Edison SA, Luxembourg
100
100
-1,377
-95 3)
Morella SA, Luxembourg
100
100
-7,021
-365 3)
Sanara SA, Luxembourg
100
100
3,495
-1,104 3)
Serenade SA, Luxembourg
100
100
-428
-23 3)
Sierra SA, Luxembourg
100
100
-2,863
-116 3)
Thomas SA, Luxembourg
100
100
1,061
612 3)
Aranäs International NV, Amsterdam
100
100
167,753
7,227 3)
Auletta BV, Amsterdam
100
100
-60,944
-3,068 3)
Bygg Bouw BV, Amsterdam
100
100
17,033
-1 3)
| 133 |
Proportion of
capital held
Voting
rights
Shareholders’
equity
Net
income
%
%
€ ,000
€ ,000
Daler BV, Amsterdam
100
100
-43
-2 3)
Sophia Antipolis BV, Amsterdam
100
100
-2,251
-114 3)
Stockned Holding BV, Amsterdam
100
100
82,113
-27 3)
Swedium BV, Amsterdam
100
100
8,229
411 3)
Zevenazur BV, Amsterdam
100
100
-10,447
-526 3)
Zevenhaven BV, Amsterdam
100
100
-23,458
-1,181 3)
Zevenshop BV, Amsterdam
100
100
-40,639
-2,046 3)
Zevenspant BV, Amsterdam
100
100
-2
0 3)
IVG Immobilière SAS, Paris
100
100
67,158
6,638 3)
C:ie Foncière Chaveaux Lagarde, Paris
100
100
15
0 3)
C:ie Foncière De Bassano, Paris
100
100
2,388
273 3)
C:ie Foncière Etoile, Paris
100
100
2,463
280 3)
C:ie Foncière Le Vermont, Paris
100
100
16,786
736 3)
C:ie Foncière Malesherbes 14, Paris
100
100
15
0 3)
C:ie Foncière Malesherbes 16, Paris
100
100
15
0 3)
C:ie Foncière Vendôme, Paris
100
100
4,681
565 3)
Asticus (GMS) Ltd, London
100
100
61,507
3,554 3)
IVG Asticus Real Estate Ltd., London
100
100
96,990
42,412 3)
IVG Asticus (Lombard) Limited, London
100
100
256
Asticus International AB, Göteborg
100
100
89,114
700 3)
265
Immobilière Sweden House SA, Brussels
100
100
225
-788 3)
IVG Real Estate Stockholm AB, Göteborg
100
100
295
721 3)
SWS Süddeutsche Waggon Service GmbH, Oberhausen
100
100
1,336
-75
Bürohaus Schönefeld GRISO Verwaltungsgesellschaft mbH & Co. KG, Munich
100
100
-3,826
14,723
IHC Immobilien AG, Luxembourg
100
100
1,169
189 3)
Société Immobilière de la place de la Madeleine S.A.S, Paris
100
100
8,659
-2,498 3)
2,834 3)
Société Immobilière 173-175 Boulevard Haussmann S.A.S, Paris
100
100
42,354
IVG Real Estate Belgium, Brussels
100
100
77,759
-967 3)
Batipromo S.A., Brussels
100
100
78,032
4,288 3)
Bonn Kft., Budapest
100
100
994
K.u.K. Zweite Grundverwaltungs-GmbH & Co. Spree-Speicher KG, Berlin
88.7
88.7
40,962
90 3)
-4,570
UN Ulrich Nack GmbH, Bonn
100
100
38
IVG Italia S.r.l., Milan
100
100
10,300
98.98
98.98
-123
-145
100
100
1,016
-304
FORSET Verwaltungsgesellschaft mbH & Co. Vermietungs KG, Munich
BOTAGRUND Verwaltungs GmbH, Berlin
FvH Grundstücksverwaltungs-GmbH & Co. Hardenbergstraße 26 KG, Berlin
-4
119 3)
98.13
98.13
4,934
682
IVG Service GmbH & Co. Berlin – Objekt Potsdam – KG, Berlin
100
100
10,000
18
IVG Service GmbH & Co. Berlin – Objekt Teltow – KG, Berlin
100
100
10,000
26
IVG Service GmbH & Co. Berlin – Objekt Großziethen – KG, Berlin
100
100
10,898
-102
Johs. Uckermann GmbH & Co. Grundstücksentwicklung KG, Berlin
92.5
92.5
6,547
-136
754
II. Associated companies, valued at equity (as per Secs. 311, 312 of the German Commercial Code)
CI Projektmanagement GmbH, Cologne
50
50
1,274
FDV Venture S.A., Luxembourg
30
30
-
Fernleitungs-Betriebsgesellschaft mbH, Bonn
49
49
26
Hannover HL Leasing GmbH & Co KG, Munich
25
25
-
Hannover HL Leasing Verwaltungs-GmbH, Munich
25
25
-
Wert-Konzept Berlin Holding GmbH & Co. Beteiligungs KG, Berlin
40
40
3,082
1) Newly established/data not yet available
2) Results not disclosed, as per Sec. 286 (3) 2 of the
German Commercial Code
3) As disclosed in the financial statements prepared for
consolidation purposes
4) Before profit/loss transfer
- 1)
3
- 2)
- 2)
534
SUMMARY OF
MAJOR SHAREHOLDINGS
C O M PA N Y
| 134 |
Supervisory Board/Board of Management
Supervisory Board
Dr Michael Albertz
Member of the Board of Management of WCM
Roland Flach
Beteiligungs- und Grundbesitz-AG
Chairman
Frankfurt (from 1 February 2003)
Chief Executive Officer of WCM Beteiligungs- und
Notification of seats on other supervisory boards as per
Grundbesitz-AG*
Sec. 285 (10) of the German Commercial Code
Frankfurt
Allboden Allgemeine Grundstücks-Aktiengesellschaft*
(Chairman)
Bremische Gesellschaft für Stadterneuerung,
Gemeinnützige Eisenbahn-Wohnungsbaugesellschaft
Stadtentwicklung und Wohnungsbau mbH
mbH Wuppertal*
GEHAG GmbH*
KHS Maschinen- und Anlagenbau AG* (Chairman)
Klöckner KHS Inc., Waukesha, USA* (Chairman)
mbH Wuppertal* (Chairman)
Klöckner-Werke AG* (Chairman)
KHS Maschinen- und Anlagenbau AG*
MAAG Holding AG (Vice President of the Advisory Board)
RSE Projektmanagement AG* (Chairman)
MATERNUS-Kliniken AG
SaGeBau-AG Sanierungs- und Gewerbebau-AG*
NB Beteiligungs AG* (Chairman)
(Chairman)
RSE Grundbesitz und Beteiligungs-AG*
* WCM Group companies
RSE Projektmanagement AG*
YMOS AG* (Chairman)
Rainer Antons
Mechanical engineering master craftsman
IVG Logistik GmbH, Etzel Office
Karl-Ernst Schweikert
Friedeburg (from 5 September 2002)
Deputy Chairman
Männedorf (Switzerland)
None
BHE Beteiligungs-AG
Wilhelm Friedrich Corneli
Gladbacher Aktienbaugesellschaft AG
Salaried corporate lawyer
IVG Immobilien AG
mbH Wuppertal*
Bonn
KHS Maschinen- und Anlagenbau AG
Kieler Wohnungsbaugesellschaft mbH
Klöckner-Werke AG
None
NB Beteiligungs AG
RSE Grundbesitz und Beteiligungs-AG
WCM Beteiligungs- und Grundbesitz-AG
| 135 |
Franz Florian
Board of Management
Driver
TALIS GmbH
Gelsenkirchen (until 30 June 2002)
Bad Honnef
None
Dr Manfred Lennings
Industrial consultant
Kettwig, Essen
Notification of seats on supervisory boards as per
BONN-INNOVA GmbH & Co. Venture Beteiligungs KG
Gerling Konzern Lebensversicherungs AG
IABG Industrieanlagen-Betriebsgesellschaft mbH
(Chairman)
Infopark Fejlesztési Rt.*
SIBRA Beteiligungs AG* (Chairman)
Stodiek Europa Immobilien AG* (Chairman)
Deutsche Post AG
TERCON Immobilien Projektentwicklungs GmbH*
Gildemeister AG (Chairman)
(Chairman)
Heitkamp-Deilmann-Haniel GmbH (Chairman)
VNR Verlag für die Deutsche Wirtschaft AG
* IVG Group companies
Franz-Josef Seipelt
Member of the Board of Management of WCM
Beteiligungs- und Grundbesitz-AG
Frankfurt (until 30 June 2002)
Dr Bernd Kottmann
Pech, Wachtberg
Allboden Allgemeine Grundstücks-AG*
Bonn Kft.*
Bartelt Inc., Sarasota, USA
Infopark Fejlesztési Rt.*
Gladbacher Aktienbaugesellschaft AG* (Chairman)
Parisz Kft.*
KHS Maschinen- und Anlagenbau AG*
Klöckner KHS Inc., Waukesha, USA*
MPI International Inc., Rochester Hill, USA*
Dr Dirk Matthey
YMOS AG*
Bad Godesberg, Bonn
HANNOVER HL Leasing GmbH & Co. KG
SIBRA Beteiligungs AG*
Stodiek Europa Immobilien AG*
Überseeische Industrie- und Handelsgesellschaft mbH*
(until 16 May 2002)
EXECUTIVE BOARD
| 136 |
Advisory Committee
Advisory Committee
Dr Joachim Grünewald
Retired Parliamentary State Secretary, Olpe
Dr Klaus Asche
Chief Executive, LIBRA Unternehmensberatung GmbH,
Hamburg
Dr Ralf Bethke
Chairman of the Board of Executive Directors,
K + S Aktiengesellschaft, Kassel
Dr Gerold Bezzenberger
Lawyer and notary, Berlin
Udo Cahn von Seelen
Former Chairman of the Board of Management,
Energie-Aktiengesellschaft Mitteldeutschland, Kassel
Karl-Hans Caprano
Managing Partner, Technoform Caprano + Brunnhofer
OHG, Fuldabrück
Dr Karl-Joachim Dreyer
Spokesman of the Board of Management,
Hamburger Sparkasse, Hamburg
Wolfgang Egger
Spokesman of the Board of Management,
Patrizia Immobilien AG, Augsburg
Dr Gert Haller
Chairman of the Management Board, Wüstenrot +
Württembergische AG, Stuttgart
Dr Volker Hassemer
Former Managing Director, Partner für Berlin –
Gesellschaft für Hauptstadtmarketing mbH, Berlin
Dr Karl Kauermann
Chairman of the Board of Management,
Berliner Volksbank e.G., Berlin
Peter Kobiela
Member of the Board of Managing Directors,
Landesbank Hessen-Thüringen, Frankfurt am Main
Thies J. Korsmeier
Former Member of the Board of Management,
Deutsche Shell AG, Hamburg
Dr Heinrich Kraft
Chairman of the Advisory Board, ECE
Projektmanagement GmbH, Hamburg
Dr Thomas Kurze
Chairman of the Advisory Board of
Dr Dierk Ernst
VBV Vermögens- Beratungs- und Verwaltungs-
Managing Partner, TERCON Immobilien
gesellschaft mbH, Berlin
Projektentwicklungs GmbH, Munich
Dipl.-Volkswirt Wolfgang Fink
Chairman of the Management Board,
Allianz Immobilien GmbH, Stuttgart
Dr Roland Fleck
Deputy Mayor for Economic Affairs, Nuremberg
Dr Christoph Franz
Member of the Management Board, Deutsche Bahn AG,
Berlin
Werner Gegenbauer
President, Berlin Chamber of Industry and Commerce,
Berlin
Klaus Laminet
Managing Partner, INVESTA GmbH, Munich
Georg Lewandowski
Lord Mayor of the City of Kassel, Kassel
Dr Walter Lohmeier
Chief Executive Manager, Kassel Chamber of Industry
and Commerce, Kassel
Dr Johannes Ludewig
Executive Director, GEB – Gemeinschaft der
Europäischen Bahnen; retired State Secretary, Brussels
| 137 |
Dr Klaus Lukas
Dr Jochen Scharpe
Chairman of the Executive Board, Kasseler Sparkasse,
Member of the Executive Management,
Kassel
Siemens Real Estate, München
Dr Werner Martin
Dipl.-Kfm. Fried Scharpenack
Lawyer, Berlin
Former Member of the Board of Management,
IVG Immobilien AG, Essen
Former Member of the Corporates and Real Estate
Dr Udo Schlitzberger
Group Divisional Executive, Deutsche Bank AG, Frankfurt
Chief Executive of the Council of the Administrative
am Main
District of Kassel, Kassel
Prof Peter Niehaus
Alfred Schmidt
Spokesman of the Management Board, Siemens Real
Retired Minister of State, Kassel
Estate, Munich
Dr Manfred Schmidt
Dr Gerhard Niesslein
Chairman of the Supervisory Board, Philips GmbH,
Chairman of the Managing board, DeTeImmobilien
Hamburg
Deutsche Telekom und Service GmbH, Frankfurt am Main
Dr Claus Nolting
Former Member of the Board of Managing Directors,
Bayerische Hypo- und Vereinsbank AG, Munich
Lars G. Öberg
Chairman of the Board, AB Rännilen, Stockholm
Prof Dr Karl-Werner Schulte
ebs European Business School, Oestrich-Winkel
Erich K. Schulthess
Chairman of the Board of Management,
Schulthess Holding AG, Zürich
Klaus-Werner Sebbel
Dr Andreas Odefey
Managing Partner, Hannover HL Leasing GmbH & Co. KG,
Managing Partner, BPE Capital Partners GmbH, Hamburg
München
Dr Jens Odewald
Thilo von Trott zu Solz
Founding Partner, Odewald & Compagnie GmbH, Berlin
Chief Executive, Wirtschaftsförderung Region Kassel
Dr Karl Ohl
Lawyer, Kronberg im Taunus
Paul Orchard-Lisle
Former Chairman and CEO, Healey & Baker Investment
Advisors, Cushman & Wakefield, London
Dr Klaus Rauscher
GmbH, Kassel
Dr Henning Voscherau
Notary, Retired Mayor and President of the Senate of the
Free Hansa City of Hamburg, Hamburg
Dr Theo Waigel
Lawyer and Former Federal Minister of Finance, Munich
Chairman of the Management Board,
Claus Wisser
Vattenfall Europe AG, Berlin
Member of the Supervisory Board, AVECO Holding AG,
Dr Klaus Riebschläger
Lawyer, Berlin
Frankfurt am Main
Eckhard Ziegert
Former Member of the Board of Management, Esso AG,
Hamburg
ADVISORY
COMMITTEE
Dr Lutz Mellinger
| 138 |
Financial Calendar
10 April 2003
Analysts’ conference
14 May 2003
Interim Report, 1 January – 31 March 2003
27 May 2003
Annual General Meeting
12 August 2003
Interim Report, 1 January – 30 June 2003
11 November 2003
Interim Report, 1 January – 30 September 2003
11 November 2003
Analysts’ Conference
Imprint
Concept and Design
Published by
IVG Immobilien AG
Printing
Zanderstraße 5/7
53177 Bonn
Germany
Photographer
Photo credits
in German.
GLOSSARY
Glossary
Caverns
Voluminous storage facilities hollowed out underground
(e.g., in a salt dome) to take oil or natural gas
CFROI
Cash flow return on investment, used to measure the
value growth of investments
Conditional capital
An additional potential to raise the Company’s issued capital, written into the Articles of Association, established by
the Annual General Meeting with conditions attached, including the requirement that this potential be used to issue
convertible and/or warrant-linked bonds
DVFA/SG cash earnings
Previously referred to as »DVFA/SG cash flow«. The financial surplus generated by all current business operations
affecting a company’s earnings. This is an indicator of its
internal financing capability, which it can use to fund investment, to amortize debt, pay out dividends and top up its
stock of cash and cash equivalents
DVFA/SG earnings
These are annual earnings as adjusted to eliminate extraordinary influences during the year. The indicator allows
underlying profitability to be assessed, and hence the trend
in profitability over a number of years, while enhancing
comparability with other companies
EBIT
Earnings before interest and taxes
EBITD
Earnings before interest, taxes and depreciation
EPRA
European Public Real Estate Association
Equity ratio (at book values)
The equity ratio is the ratio of shareholders' equity to the
sum of total liabilities plus shareholders' equity. For the
purposes of calculating the ratio at book values, shareholders' equity additionally includes equity components
of special tax-allowable reserves and excludes net income
available for distribution. This equity figure is divided by
the sum of shareholders' equity plus borrowed capital,
the latter being carried net in liabilities
Fixed assets cover
The ratio of fixed assets to long-term capital (i.e shareholders' equity and liabilities with over one year to maturity)
GAS
German Accounting Standard published by the German
Accounting Standards Committee
GLOSSARY
Glossary
Gross floor area (GFA)
The sum of the total areas of all floors of a building, using
the overall dimensions of all construction elements
Logistics centre
A commercial property well located with good transport
links, and used to store, transship and distribute merchandise
Market capitalization
The total value placed on a company’s equity by the stock
market at any one time (share price x number of shares)
Net building land
The total site area less the area devoted to access roads
and gardens or grassed areas
Operating earnings
These are derived from the net income from ordinary activities, by eliminating net interest income or expenses and
extraordinary effects while adding in the »other taxes« item
thus neutralizing the gain for tax purposes and in the as a
charge
P/E ratio
Price/earnings ratio
Portfolio management
Administering and managing a stock of properties, acquiring new ones while disposing of others. A key method of
enhancing and preserving value
Project development
Overall management of a major real estate project. Depending on the nature of the project, includes a wide variety of
roles along the road from the original idea to a facility’s
final operation
Research coverage
The extent to which a listed public company has been
covered by studies and analyses issued by banks and
stock analysts.
Road show
Series of corporate presentations made to institutional
investors in major financial centres
XETRA computer trading
The computerized stock exchange trading system in Germany (short for »exchange electronic trading«). The system
is increasingly superseding the use of the stock exchange
floor. XETRA trading can be carried out between 9.00 a.m.
and 8.00 p.m.
TOP 10 INDUSTRIES
|2|
Net rent (%)
Overview 2002
Public institutions
25.3
Financial services
9.3
7.8
6.2
5.8
Engineering, R&D
5.2
5.0
Telecommunications
4.6
Retail
3.9
Real estate
3.7
IVG IMMOBILIEN AG
Dr Bernd Kottmann
Dr Dirk Matthey
Germany
Finance
Fund Management
Munich
Investor Relations
Project Development
Project Development
Branch Offices
Accounting/Taxes
Management
Group Controlling
Berlin
€ million
Düsseldorf
68.1
70.4
61.9
Brussels
12%
London
18%
5%
Milan
1%
Frankfurt
20%
Paris
12%
Hamburg
4%
Budapest
4%
53.9
46.9
32.1
7%
17%
Legal/Insurance
Personnel
1997
1998
1999
2000
2001
350.3
€ million
BRANCH OFFICES
Berlin
2002
11%
Paris
11%
Milan
5%
Hamburg
8%
Düsseldorf
7%
London
7%
Frankfurt
4%
Brussels
25%
Munich
14%
Other
5%
259.8
Berlin
Budapest
Frankfurt
London
Munich
168.7
112.9
188.7
EBIT
165.8
Paris
147.7
Milan
96.4
Hamburg
70.6
Düsseldorf
201.0
50.6
Brussels
172.8
1997
1998
1999
2000
2001
2002
(Operat. earnings)
EBITD
Imprint
Office
62%
Business parks
21%
11%
Other
Stodiek Europa
Immobilien
Project Development
TERCON
Jobau
Fund Management
HL Hannover Leasing
Other
PER SQUARE METRE
in €
IVG InfoTec
9.20
11.19
Zanderstraße 5/7
Germany
2000
Photographer
Office
58%
Business parks
18%
19%
Other
1999
Printing
Photo credits
5.55
1998
IVG Immobilien AG
9.22
7.92
1997
Published by
53177 Bonn
11.16
Wert-Konzept Berlin
6%
Concept and Design
2001
2002
5%
in German.
ANNUAL REPORT 2002
IVG Group in Figures
€m
2002
2001
Change
2000
1999
1998
Turnover
471.2
319.3
47.6%
321.3
423.6
388.3
Total operating performance
637.8
486.6
31.1%
434.7
543.6
505.3
EBITD
350.3
259.8
34.8%
201.0
172.8
168.7
188.7
165.8
13.8%
147.7
96.4
70.6
111.1
90.0
23.4%
91.1
80.1
60.5
70.4
68.1
3.4%
61.9
53.9
46.9
Investments
358.3
432.2
- 17.1%
306.5
1,179.9
430.9
Total assets
3,185.3
3,021.9
5.4%
2,585.4
2,520.7
943.4
Fixed assets (book values)
2,675.5
2,441.5
9.6%
2,112.6
2,070.5
601.3
89.4
96.2
- 7.1%
91.1
90.0
106.7
769.5
758.4
1.5%
690.4
659.7
356.1
Equity ratio (book values) %
24.5
24.3
0.8%
27.4
25.3
34.9
Equity ratio (market values) %
41.2
45.2
- 8.8%
49.6
48.8
70.5
1,642.3
1,894.0
- 13.3%
1,845.0
1,793.8
1,408.5
763
- 1.7%
709
747
Fixed assets cover %
Shareholders’ equity (book values)
Net asset value
Employees
IVG Immobilien AG
Dividend per share €
Zanderstrasse 5/7
53177 Bonn
** Proposed
Germany
Investor Relations
Fax:
+49 (0)228 / 844-372
Email:
[email protected]
Public Relations
Phone: +49 (0)228 / 844-300
Fax:
+49 (0)228 / 844-338
Email:
[email protected]
Internet: www.ivg.de
IVG IMMOBILIEN AG
Phone: +49 (0)228 / 844-137
Annual Report 2002
750
0.34
**
0.34
–
0.33
0.31
2,268
*
0.29

IVG-Annual Report 2002

Transcription

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