Buwog, a wholly-owned subsidiary of Immofinanz, has sold a majority of its residential portfolio in Upper Austria as part of plans to focus on Greater Vienna and Germany.
Buwog, a wholly-owned subsidiary of Immofinanz, has sold a majority of its residential portfolio in Upper Austria as part of plans to focus on Greater Vienna and Germany.
The portfolio includes 48 properties with 1,135 flats and lettable space totalling nearly 84,000 m2, largely located in Linz, Wels, and Steyr. The buyer is the Linz-based residential building company Wag.
The two partners have agreed to keep financial details confidential. Immofinanz said, however, that the transaction was made above carrying value.
In Upper Austria Buwog still retains 18 properties and co-ownership stakes with 693 flats and 51,128 m2 of lettable space.
The divestment - which follows Immofinanz's sale of the Vorarlberg portfolio as well as assets in Styria and Carinthia - reflects the company's efforts to focus on greater Vienna and Germany, particularly the northern federal states and the capital Berlin.
'We are therefore continuing to systematically implement our IPO-related strategy and will invest the funds we generate from these sales in these two core markets,' said managing director Alexander Hoff. Buwog is currently reviewing several portfolio acquisitions in the German market, he added.
Immofinanz announced earlier this month that it plans to spin off Buwog's residential property management and development activities in Germany and Austria. The operation, which could take the form of an initial public offering, is planned to take place next year.
Immofinanz said the remaining business will concentrate on the retail, office and logistics market segments especially in Central and Eastern Europe.
