German property company Colonia Real Estate (CRE) has announced the launch of a 'comprehensive' programme to reduce costs and enhance efficiency. In a statement on Monday, the company said it aims to cut its general administrative costs by at least 50% by consolidating and restructuring its subsidiaries, reducing general administrative costs and its external consulting expenses.
German property company Colonia Real Estate (CRE) has announced the launch of a 'comprehensive' programme to reduce costs and enhance efficiency. In a statement on Monday, the company said it aims to cut its general administrative costs by at least 50% by consolidating and restructuring its subsidiaries, reducing general administrative costs and its external consulting expenses.
'Our clear goal is making CRE independent from the current crisis situation. Access to equity and debt will be very limited in the coming months. Cutting our cost substantially will enhance our internal financing', said chief financial officer Volker Lemke.
The company hopes to be able to reach this target by the first quarter of 2009.
CRE expects the volume of transactions in Germany will decline further as limited financing possibilities and growing interest charges will continue to put pressure on prices through next year at least. 'We're prepared for a continuing difficult market environment,' said Stephan Rind, CEO of Colonia Real Estate. 'Our equity ratio is 32% and recently the company successfully closed substantial refinancings.'
