03.05.2012 Messe Frankfurt cancels cross-border leasing arrangements

Total revenue of over €15 million

Today, Messe Frankfurt announced its intention to cancel its existing cross-border leasing arrangements with the US investor and participating banks by mutual agreement with effect as of the end of April. Messe Frankfurt has yielded total revenue of over €15 million from this contract, which dates back to 2000, not counting the interest savings made over the twelve-year period.

Wolfgang Marzin, President and CEO of Messe Frankfurt: “Ending the cross-border leasing agreements will also make it easier for Messe Frankfurt to further develop its exhibition grounds – it will render us completely flexible again.” Marzin also stressed that the company’s US business partner had been constructive in its support for all developments at Messe Frankfurt in recent years, even the ones affecting its own interests.

Klaus Münster-Müller, Chief of Finance at Messe Frankfurt: “The cross-border leasing arrangements that were negotiated and signed by all parties in 2000 were the right decision for Messe Frankfurt and its shareholders at the time – and an economically sound one. The contract did not give rise to any financial burden for the company, for the City of Frankfurt or for the federal state of Hesse”. The agreed credit ratings of the US partner were such that there was no need for action to be taken, even in 2008 during the worst economic crisis since the 1920s. “Owing to the current economic situation and interest rate developments and to the credit ratings of the respective parties, now is an opportune time to bring the arrangements to a profitable close.”

 
Background information on Messe Frankfurt
Messe Frankfurt is Germany’s leading trade fair organiser, with 457* million euros in sales in 2011 and 1,769* employees worldwide. The Messe Frankfurt Group has a global network of 28 subsidiaries, five branch offices and 52 international Sales Partners, giving it a presence for its customers in more than 150 countries. Events “made by Messe Frankfurt” take place at more than 30 locations around the globe. In 2011, Messe Frankfurt organised 101 trade fairs, of which more than half took place outside Germany.
Messe Frankfurt’s exhibition grounds, featuring 578,000 square metres, are currently home to ten exhibition halls and an adjacent Congress Centre. The company is publicly owned, with the City of Frankfurt holding 60 percent and the State of Hesse 40 percent.

* preliminary numbers (2011)