IVG, the owner of The Squaire, an intergrated rail and office centre at Frankfurt Airport, has reported a -€68 million loss for Q2 of 2011, just days after Lufthansa agreed to rent approximatley 18,500 sqm of space at the signature building.The German real estate company said the result was due to the 'recurring effect' of higher than expected invoicing costs of building The Squaire,
As of spring 2012, about 1,000 employees of the airline, which hubs from the airport, will start working out of their offices in the 660m building atop the ICE high-speed train station.
"It is a pleasure to welcome Lufthansa aboard as yet another prestigious corporate," said Dr Wolfgang Schäfers, member of the management board of IVG Immobilien AG. "With three key tenants in place and an occupancy rate above 80%, our letting strategy is right on schedule. Our future efforts will focus primarily on the marketing of small or mid-sized units as well as flexible office concepts, and on optimizing the intrinsic value of the complex."
The company said that although the losses were extraordinary it warned it would not return to profitabilty until 2012 at the earliest.
