Immoeast sells assets in Romania
02 October 2009
Austrian investment fund Immoeast, which has started to restructure its portfolio across the South Eastern European region, will continue to sell assets in Romania, the fund's biggest market in the region. "We are over-invested in certain countries like Romania or shopping centers in Moscow," said chief executive officer Eduard Zehetner, quoted by Bloomberg newswire.
"We are not forced sellers and we are going to sell to restructure our portfolio into what we want." Immoeast had previously announced it was planning to sell some of its assets in Romania and exit from several development partnerships. But now it says it might offload more than initially anticipated.
"We may sell more than budgeted as we are getting offers for more than we expected," Zehetner recently said. "We have certain constraints. We don't want to lose money in terms of the initial investment."
Immoeast owns 72 properties in Romania, worth EUR 750 million, according to its most recent report. Romania alone covers 13 percent of the fund's total portfolio. In Bucharest, it owns several office properties, such as Iride Business Park, Victoria Park and S-Park. The firm also has shopping malls across Romania: Polus Center in Cluj, Armonia in Arad and Euromall in Pitesti. Gold Plaza in Baia Mare, developed by Hungarian developer Futureal and in which the fund holds the majority of the shares, has recently been finished. Immoeast is 55 percent owned by Immofinanz.
Source: business-review.ro
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