Vienna-based Immoeast has reported depreciations of more than EUR 1 bn for the first three quarters of its 2008/09 business year. The developer of real estate in Central and Eastern Europe (CEE) said that it had continued to struggle with the extremely difficult market environment from 1 November 2008 to 31 January 2009, making more depreciation of the real estate portfolio and writedowns resulting from the cancellation of development projects necessary.
Vienna-based Immoeast has reported depreciations of more than EUR 1 bn for the first three quarters of its 2008/09 business year. The developer of real estate in Central and Eastern Europe (CEE) said that it had continued to struggle with the extremely difficult market environment from 1 November 2008 to 31 January 2009, making more depreciation of the real estate portfolio and writedowns resulting from the cancellation of development projects necessary.
Accumulated revaluation of properties from the first three quarters of Immoeast's book year came to minus EUR 507.7 mln, depreciation and amortisation on development projects, goodwill and receivables to minus EUR 634.2 mln. Additional depreciation could not be ruled out, Immoeast warned.
The company stressed that its strategic reorientation is beginning to show initial results. Revenues were up 19.3% and gross cash flow rose 46.5%. Immoeast said that its high-volume project pipeline has been reduced by more than half, curbing the need for future financing by EUR 2.4 bn.
'The cancellation of further projects with a total investment volume of EUR 1.1 bn is currently in negotiation with the project partners,' the company added.
