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Wednesday, January 14, 2015

IVG calls off sale of $1 billion property The Squaire, (NYSE: BAC)

German property company IVG Immobilien has called off plans to sell Frankfurt office and hotel project The Squaire in a surprise move after failing to find buyers for the $1 billion building, IVG said on Wednesday. Instead, IVG reached an agreement with Bank of America Merrill Lynch to obtain a 470 million euro ($554 million), 5-year refinancing package related to the project, the company said."The offers that we received did not reflect the value that we estimated for the property," said IVG Chief Executive Ralf Jung in a statement. "At the same time, the success we had in refinancing made The Squaire economically attractive to keep in our portfolio."Three interested parties bid in December for the property, which sits atop a train station at the Frankfurt airport, IVG said.IVG had made selling The Squaire, one of the company's most problematic assets, the cornerstone of a restructuring plan launched after it emerged from insolvency in 2014. IVG had become insolvent in 2013 after being weighed down by debt and cost overruns.

Bank of America Corporation (Bank of America) is a bank holding company and a financial holding company. Shares of BAC fell by 1.38% or $-0.23/share to $16.45. In the past year, the shares have traded as low as $14.37 and as high as $18.21. On average, 74503200 shares of BAC exchange hands on a given day and today's volume is recorded at 100858512.