Immofinanz sells EUR 300 mln in assets as part of restructuring

Immofinanz has sold EUR 300 mln worth of assets since November 2008 despite the financial crisis. The listed Austrian real estate group said the sales were carried out at prices on average above current appraisal values.

The sell-offs are part of a major strategic re-orientation at Immofinanz and are aimed at strengthening the company's cash reserves. This week Immofinanz also announced it had sold its Austrian unit, ImmoAustrian, for about EUR 1.5 bn to the group's listed Central and Eastern European arm, Immoeast. The sale helps pay off a EUR 1.7bn loan Immofinanz was granted by Immoeast.

Immofinanz said negotiations with its major creditor banks were also ongoing and are now approaching the final stages. Immoeast, meanwhile, is revising its development pipeline. 'Suitable cost-optimised solutions were drawn up for over half of the development portfolio,' the group said.

The Immofinanz group began the restructuring last year following the resignation of Karl Petrikovics who had led Immofinanz and Immoeast since their formation in 1990 and 1998.

The Petrikovics era came to an end when the group was rocked by the deterioration of the real estate market, concerns about the group's liquidity, a collapse in its share price and questions about a missing EUR 500 mln payment. The question of the payment was resolved during the short tenure of Thomas Kleibl as CEO. Kleibl stepped down from his post at the Immofinanz group on 28 February 2009 after putting the restructuring programme in place.

On Monday, Immofinanz said Dr. Eduard Zehetner would assume the role of speaker of the board at Immofiannz in addition to his function as CFO. The executive board at Immofinanz consists of Zehetner (CFO and speaker), Daniel Riedl and Michael Wurzinger.

Dr. Eduard Zehetner (CFO and speaker), Daniel Riedl, Dr. Edgar Rosenmayr, Dr. Manfred Wiltschnigg and Michael Wurzinger are the executive board of Immoeast.