Sparkassen changes acquisition strategy

Sparkassen Immobilien said it will increase the share of developments projects in the entire investment pipeline from the current 10% to 25-33%. The company will Carry out development projects across Central Eastern Europe, while acquiring standing assets solely in Austria and Germany. In Germany, the company will focus on residential properties mainly located in Berlin, for a total of committed investments of about EUR 353 mln.

Sparkassen said during the presentation of its final-year results that it expects its property portfolio to reach EUR 4 bn in value by 2010, with 50% located in Austria and Germany and 35% in Central Eastern Europe. Emerging markets such as the major cities of Ukraine and Belgrade will account for a share of 15%.

Revenue increased by 75% year-on-year from EUR 42.2 mln to EUR 73.6 mln. The value of the property portfolio rose from EUR 785 mln to EUR 1.2 bn. Rental income increased by 77% year-on-year from EUR 34.2 mln to EUR 60.4 mln. The average gross yield for the countries in which the company is active comes to 6.1% for Austria, 6.7% for Germany, 6.3% for the Czech Republic, 6.9% for Slovakia, 7.7% for Hungary and 7.9% for Romania.