Immofinanz dismisses rumours of impact from Lehman crisis

Austrian investor Immofinanz rushed to dismiss rumours on Thursday that the company or its 54%-controlled unit Immoeast has been affected by the collapse of US investment bank Lehman Brothers.

'In the course of today there have been rumours that Immofinanz and/or its subsidiary Immoeast have been affected by the crisis. These rumours are entirely unfounded,' the company said in a statement.

Immoeast and Immofinanz saw their share value fall by as much as 35% to 34% on Thursday to EUR 1.98 and EUR 2.85 respectively.

Immofinanz reiterated that it has two business relations with Lehman Brothers: it has a long-term credit facility of EUR 54 mln with a Lehman company and Immoeast is co-partner with a Lehman Brothers fund in the real estate development company Adama. Immoeast has a 32% stake in Adama, with Lehman Brothers holds a 6% stake. The full amount of Lehman Brothers' capital in the company is paid, Immofinanz said.

It added: 'Neither point results in a risk position for the Immofinanz Group, either in terms of liquidity or in view of the company's assets.'

Immoeast reported a first-quarter operating loss of EUR 261 mln on Thursday, mostly due to the devaluation of its assets in emerging European countries. The figure compares with a profit of EUR 93 mln in the same period last year.