German property investment company Treveria has terminated it management agreement with the collapsed Dawnay Day Group and changed its operating strategy.

Treveria, formerly known as Dawnay Day Treveria, said in a Stock Exchange statement today that it would change its name to Treveria, subject to shareholder approval, and internalise the asset management of its €2.2bn (£1.87bn) portfolio as it was in the best interests of its shareholders.

The portfolio generates around €155m (£132m) a year in rent.

Treveria’s internal asset management will be carried out by a wholly-owned subsidiary called Treveria Asset Management (TAM) which replaces Dawnay Day Treveria Real Estate Asset Management.

Replace Dawnay Day

Cushman & Wakefield has also been appointed as Treveria’s internal investment asset manager to replace Dawnay Day Property Investment.

Ian Henderson, chairman of Treveria, said the new arrangements would provide the best opportunity to rebuild shareholder value over the medium term.

‘We look forward to continuing to work with our existing team led by Damian Wisniewski, director of finance, and Chris Kingham, director of property, with David Hunter as the non-executive chairman of TAM, and to starting what I am sure will be a successful working relationship with Cushman & Wakefield,’ said Henderson.

Treveria’s board has also decided not to raise additional equity but to focus on ‘prudent cash and debt management across Treveria and its subsidiaries’.

Henderson said: ‘Since the board announced a strategic review in June we have considered a number of options and opportunities presented to us.


'The conclusion we have reached is that the most appropriate course of action is to focus on the management of our existing portfolio by internalising the asset management team and managing our balance sheet prudently, whilst ensuring we utilise our cash resources carefully.

'We remain confident that the portfolio offers the potential to deliver long term value.

'We have good quality well-located assets, which produce recurring income and provide significant asset management opportunities.

'We are glad that the unsettling period caused by the financial difficulties at the Dawnay Day Group is behind us and look forward to focusing on the important task of managing our assets to ensure we can extract value from them over the medium term.'

Most of the Treveria Group's debt facilities are close to the upper limit of their respective loan to value covenants and the board said it expects to ‘engage in a constructive dialogue with its creditors to find workable solutions in the event that market conditions deteriorate further’.