CEE developer and investor Immoeast has acquired a 50% stake in Caterata, a residential developer in the South Eastern and Central Eastern European (SEE-CEE) markets. Tel Aviv-listed New Horizon Real Estate Group, the former sole owner, retained the other 50%. An Immoeast spokesperson told PropertyEU on Thursday that the two companies agreed not to disclose the amount of the investment, which was made through a capital increase.
CEE developer and investor Immoeast has acquired a 50% stake in Caterata, a residential developer in the South Eastern and Central Eastern European (SEE-CEE) markets. Tel Aviv-listed New Horizon Real Estate Group, the former sole owner, retained the other 50%. An Immoeast spokesperson told PropertyEU on Thursday that the two companies agreed not to disclose the amount of the investment, which was made through a capital increase.
Caterata is currently involved in developing seven large residential projects totalling around 4,500 flats, for an overall investment volume of around EUR 600mln. Zoning, planning and preparations for the projects, which are located in Romania (5), Poland and Latvia, are underway and construction works are expected to start between the third quarter of 2008 and the start of 2009.
'Caterata focuses clearly on the mid-price sector for the rapidly growing middle classes', said Immoeast's CEO Karl Petrikovics. Immoeast expects Caterata will be in a position to launch a possible Initial Public Offering within the next five years.
The acquisition represents a further step in Immoeast's strategy to strengthen its residential development business, that accounts for more than 17% of its portfolio. The company feels that the residential sector currently is the most profitable real estate segment in CEE/SEE. Immoeast is active in Romania, via its stake in the Romanian residential developer Adama, while in Bulgaria operates through its 42% stake in local developer Prime Property. Finally, the company also cooperates with developer Ocean Atlantic in the Western Balkans.
The company said the flats at its Francuska project in Belgrade are selling at up to 40% more that initially expected.