July 13 (Bloomberg) -- Germany’s government revived a plan to sell the property-management company that replaced Treuhand Gesellschaft to take advantage of the improving property market.
TLG Immobilien GmbH, a Berlin-based company that owns real estate in eastern Germany, will be split into two companies that will be sold separately to attract more bidders, the Finance Ministry said in a statement yesterday.
Following Germany’s reunification in 1990, Treuhand oversaw the sale and restructuring of thousands of companies in the country’s six eastern states. TLG has managed assets since 2000 and reported net income of about 20 million euros for 2010, according to the statement. TLG’s assets are valued at about 1.76 billion euros ($2.5 billion).
TLG owns homes, office buildings, hotels and retirement homes in eastern Germany, mainly on the Baltic Sea coast and in Berlin, Halle and Leipzig. The sale was initially planned for 2008 and was shelved in November of that year because of the global recession.
TLG used the interim period to “optimize its portfolio further, improve its efficiency and thoroughly prepare for the privatization,” the ministry said. The government expects a favorable price due to a “very positive” real-estate environment in Germany, according to the statement.
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