Immofinanz shareholders back resi unit spin-off

Immofinanz's shareholders have given their backing to plans to spin off the Vienna-listed real estate company's residential property business, Buwog.

The spin-off was approved by 99.96% of the votes cast, whilst an approval rate of at least 75% was required.

'This decision by our shareholders will allow Immofinanz group to simplify its structure, focus its strategy and establish the structural requirements for a more appropriate valuation of both companies - Immofinanz and Buwog - in the capital market,' Immofinanz CEO Eduard Zehetner said. 'We see Buwog as an attractive investment. This conviction is reflected, among other aspects, in our 49% investment, which we will retain in a first step.'

Buwog CEO Daniel Riedl added: 'Buwog is well-positioned to benefit from opportunities currently available in both home markets - Germany and Austria - with its integrated and sustainable business model and conservative capital and financing structure. An independent presence and direct access to the capital market will allow the company to better realise its growth potential.'

The spin-off will take effect when it is recorded in the company register. This is expected, at the earliest, on 25 April 2014. All shares in Buwog will then be admitted for trading on the regulated market of the Frankfurt Stock Exchange (main listing), the Vienna Stock Exchange (prime market) and the main market of the Warsaw Stock Exchange. The first trading day is expected to be 28 April 2014 in Frankfurt and Vienna and 29 April 2014 in Warsaw.

Following the spin-off, Immofinanz will hold a financial investment of 49% in Buwog that will be further reduced over the medium term. Immofinanz will terminate its involvement in the management of Buwog once the spin-off takes effect.

Buwog owns about 54,000 apartments, spread equally between Germany and Austria. The company is also developing a further 35,000 units.