Real estate firm IVG plans new bid to sell The Squaire - source

FRANKFURT Wed Aug 27, 2014 11:47am EDT

FRANKFURT Aug 27 (Reuters) - German property company IVG Immobilien is planning a new attempt to sell The Squaire, the office and hotel building perched on top of the train station at Frankfurt airport, a source familiar with the process told Reuters.

IVG, famous for co-owning the Gherkin skyscraper in London, became insolvent after being weighed down by debt and cost overruns. The Squaire has been one of its most problematic assets.

The talks with brokers and interested parties are at an early stage and any sale is likely to only get going once the company has come out of the insolvency process, the person said.

The building at Frankfurt airport with 146,000 square metres of lettable space was opened in 2011 but is not yet fully rented out.

According to the most recent figures available The Squaire had a book value of 800 million euros ($1.06 billion), against building costs of over 1 billion euros in the company's 2012 accounts.

IVG declined to comment.

The move to sell the Squaire was reported earlier by Bloomberg. (1 US dollar = 0.7580 euro) (Reporting by Kathrin Jones; Writing by Victoria Bryan; Editing by Alexander Ratz and Michael Urquhart)

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