Invista European has announced the sale of its largest asset – Campus Heusenstamm, a collection of offices in Frankfurt, Germany. The sale price is €32m which is 22% less than the valuation of the office in its last published net asset value. €1.9m of the proceeds are being kept back to cover possible taxes and any adjustments to the closing balance sheet. the rest of the money will be used to cut Invista European’s debt pile.
In spite of the huge haircut on the valuation, the manager is pleased with the deal as it takes the company much closer to getting its debt down to levels at which the interest rate it pays will fall – increasing the viability of the company. At the time of writing though the shares are off 23%.
IERE : Invista European sells largest investment