Vienna-based Immoeast is to increase its activity in Ukraine and invest in Russia to a lesser extent. Karl Petrikovics, CEO of the largest listed property company in Austria, told PropertyTV at MIPIM IN Cannes that Immoeast, which to date has focused on Central and Eastern Europe, may also step up its presence in Serbia. But the property investor remains cautious about the political climate in the Balkan country.
Vienna-based Immoeast is to increase its activity in Ukraine and invest in Russia to a lesser extent. Karl Petrikovics, CEO of the largest listed property company in Austria, told PropertyTV at MIPIM IN Cannes that Immoeast, which to date has focused on Central and Eastern Europe, may also step up its presence in Serbia. But the property investor remains cautious about the political climate in the Balkan country.
Last August, Immoeast launched a programme to divest between €1bn and €1.5bn of its €11bn portfolio. Petrikovics said the company had recently closed a transaction in Prague and was in negotiation on further sales in Warsaw at ‘very interesting and attractive prices’. ‘This will be reinvested further east - most probably in Ukraine and a little bit in Russia.’ Petrikovics said that Immoeast, as a classic investor, would focus on the main cities in Russia, Moscow and St Petersburg.
Asked to evaluate the real estate climate in Europe, Petrikovics said GDP forecasts for the UK are ‘not the most promising’. In addition, London’s office market is very dependent on the financial industry. By contrast, Central and Eastern European countries would likely see growth of between 4% and 8% per annum. Growth for individual cities in the CEE region could even be higher, according to Petrikovics. The probability of rising rents was higher in these cities as they are not so dependent on a specific industry and have a broadly diversified tenant base, he said.
