Magnat to focus on Black Sea region

Frankfurt-based listed Magnat Real Estate said that it is narrowing its focus to three to four rapidly-growing core markets in Eastern Europe, from the nine currently being served. The company plans to concentrate on the Black Sea region, and in particular on Ukraine, Turkey and Georgia.

Romania is a potential candidate to become a fourth core market, and developments in the country are being monitored, Magnat said. As a result, Magnat intends to gradually pull out of other markets such as Germany, Poland, Bulgaria and Russia. 'The stocks and projects in these countries are to be divested by the end of 2013. The first sales should take place in as early as 2011,' it said.

In its core markets, the company will be active through development of own projects and third-party asset management mandates. 'Eastern Europe is currently emerging from the deep economic recession in the wake of the financial crisis of 2008 to 2010. In addition to numerous distressed situations, the long-term backlog and upward trend in Eastern Europe continues to be highly promising,' the company said.

To take advantage of the current opportunities, Magnat is aiming for a significant medium-term growth of its asset base. Its asset management division will remain a central part of its business, with the company planning to step up its activities with respect to third-party mandates in the new core markets in Eastern Europe.