Aareal Bank boosts CEE business

German bank Aareal said on Wednesday that it has opened a representative office in Moscow. Following official approval from the Central Bank of the Russian Federation (CBR), the office - located in the heart of Russia's capital city - opened its doors for business this week.

The new office is an important step in Aareal Bank's strategy to achieve broad global diversification and further expand its credit portfolio exposure to Central and Eastern Europe (CEE). Aareal Bank will finance mainly large office buildings, hotels and shopping centres in the Greater Moscow and St Petersburg regions.

Karl Wilson, managing director of Aareal Bank, believes that Russia is one of the key growth markets in the CEE region for Aareal: 'Our local expertise will allow us to maintain direct, close contact with our clients and focus on their specific needs.'

Additionally, the business activities of Aareal Bank's Polish subsidiary - Aareal Financial Service Polska - were transferred to a newly-established Warsaw branch. The new office was set up to concentrate Aareal Bank's businesses in the CEE region, consisting of activities in Poland, the Czech Republic, the Republic of Slovakia, the Russian Federation and Romania.

Norbert Kickum, an Aareal Bank board member, said: 'In line with our three-continent strategy, we will structure our distribution activities through so-called hubs - distribution centres focusing on a specific economic region.'

Aareal Bank has had a presence in the CEE region since 1998, and in Russia since 2003.