Immofinanz: sell-offs planned and merger under scrutiny

Immofinanz and its subsidiary Immoeast will safeguard liquidity in the current market climate by selling off portfolio assets and sharply reducing the number of development projects, the companies' new board spokesman Thomas Kleibl said on Monday. In addition, the companies will evaluate the advantages of a merger between Immofinanz and Immoeast. 'Should the evaluation come out in favour of a merger with respect to the interests of the respective shareholders and companies, we will pursue this option,' Kleibl said.

Kleibl reiterated earlier company statements that the intercompany loan by Immoeast to Immofinanz will be repaid. The real estate projects in which the money from the loan was invested 'will be sold over the medium term in order to service the loan,' he said. 'In light of the crisis on the financial markets, it would be value-destroying to liquidate these projects in the short term,' he noted.

Turning to the possible merger between the two companies, Kleibl said: 'A merger, the details of which are currently still being evaluated with strong consideration placed on the interests of the respective owners, would, given the current understanding, lead to a rise in value for both groups of shareholders.'
Should the current evaluation process favour a merger, general meetings are intended to be held in the first quarter of 2009, he added.

Kleibl will assume a seat on the board at Immofinanz alongside Daniel Riedl, Christian Thornton and Michael Wurzinger. At Immoeast, he will join Edgar Rosenmayr and Christian Thornton on the board. His term in office will end on 31 October 2011.