Hypo Real Estate chief quits(3)

The Expo Real property show in Germany has been rocked this afternoon by news that Georg Funke, chief executive officer of Hypo Real Estate, has been forced to resign with immediate effect.

Georg Funke, chief executive officer of Hypo Real Estate, has quit.

The head of Hypo, which yesterday managed to agree a €50 billion emergency credit line to see it through 2009, left after pressure from investors and politicians calling for senior members of the board to go.

In a short statement, Hypo said after agreement with the supervisory board, Funke had resigned with immediate effect. “For the time being his responsibilities will be assumed within the existing assignment of responsibilities of the management board.” A decision on his successor will be made later today, the company added.

The drama unfolded as Hypo hosted visitors to its corporate stand at the annual Expo Real property show in Munich, Germany. A spokeswoman declined to discuss with PERE further issues until a subsequent announcement was made on Funke’s replacement.

The mood at Expo has been one of shock and concern at the way the banks are unravelling. One executive at a Hypo rival told PERE that his bank held a meeting yesterday evening at which it was decided no new business would be underwritten in the short term.

The Hypo announcement comes on day two of Expo Real. Delegates head home tomorrow.