As a result of the situation described in the Company releases no. 27, 21 July 2011, and no. 28, 18 August 2011, regarding certain of the Company's German subsidiaries, the Company has, as mentioned in the half-year report, been in the process of reviewing and changing its property and asset management strategy from an insourced model to a completely outsourced property and asset management model.
The Company has therefore yesterday evening entered into an agreement with German asset and property manager alt+kelber Immobilienverwaltung GmbH, part of conwert Group, regarding the transfer of the Company's property management. The property management contract will be effective as of 1 November 2011. An asset management contract will be signed during the first half of October. It is the expectation of the Company that the transfer of the asset and property management can be fully completed around 1 November 2011.
alt+kelber Immobiliengruppe GmbH, a part of conwert Group, is one of the largest German asset & property management companies with more than 30 years of experience, subsidiaries in all markets, in which Tower Group A/S is present, and more than 45,000 units under management. The management of the Company is convinced that alt+kelber will provide a sustainable managerial solution to the implementation of a successful restructuring program in the Company and will create long-term value for the Company’s shareholders.
At present, due to the loss of 52% of the Company’s portfolio and the continued uncertainties regarding the restructuring of the Company, the management is still not in a position to elaborate further on the impact to the expectations of the year-end results of the Company.
Kind regards
Tower Group A/S
Martin Coté
CEO
Questions regarding this release can be directed to Martin Coté, CEO, on tel.: +420 725 716 755.
