Immofinanz sells Vienna resi and hotel assets for €100m

Austrian listed property firm Immofinanz has concluded the sale of a number of residential and hotel properties in Vienna for a total of €100 mln.

The CEE-focused developer/investor has divested a package of residential properties to Austrian insurance group Wiener Städtische and Sparkassen Versicherung while the Leonardo Hotel Vienna was sold to the lessee. The property was the last hotel in the Immofinanz portfolio.

The proceeds from these transactions 'substantially exceeded the respective book values at the end of October 2014', the company said in a statement.

'Investors’ interest in the Vienna real estate market remains high, above all due to the current low interest rates. This is reflected in attractive prices. With the sale of this residential portfolio and the hotel, we are continuing to sharpen our profile as a pure commercial real estate corporation,' indicated Oliver Schumy, CEO of Immofinanz Group.

The residential portfolio comprises eight properties with a combined rentable space of 26,000 m2. All of the apartment buildings are located within the Vienna Beltway (Districts 3, 4 and 5).

The Leonardo Hotel offers 204 rooms and is located on the Mariahilfer Beltway, diagonally opposite the West Railway Station.

The sale significantly reduces the share of the non-core other segment in Immofinanz's standing investment portfolio to about 2%, from 3.4% as of 31 January 2015.