Strabag to drop underperforming real estate

Austrian facilities and property management firm Strabag plans to drop poorly-performing real estate mandates, according to CEO Ludwig Steinbauer.

The firm's financial report for 2013 showed real estate management accounted for €99 mln of its €955 mln turnover.

But CEO Ludwig Steinbauer noted that, 'the gap between falling prices and rising standards of quality while maintaining a constant performance volume is widening all the time.'

The firm's response, he said, includes 'forgoing contracts. We will not accept mandates at the expense of our profitability, and we are not continuing such mandates, even for long-standing clients.'

The facilities management business, which accounted for €577 mln, expanded last year into new areas, including energy and utilities.

The firm plans to expand this further, possibly into chain stores and growth through acquisition.