CA Immo has announced that it has acquired a portfolio of 23 real estate units in Vienna, Austria. The package comprises 16 properties and seven apartment ownership shares with an effective area that will amount to around 60,000 m².
Most of the properties enjoy superb locations in the kind of inner city areas where development space very rarely becomes available. As well as new buildings, the package contains renovated old buildings, some of which feature particularly lucrative utilisation forms such as attic extensions. Of the total effective area, around 15,000 m² has been completed; the rest is either under construction or at the project planning stage.
With approximately two thirds of the portfolio designated as project development space, there is scope for added value and yield generation. In the region of 70% of the new package is residential space; it also contains office and retail space.
Although the acquisition will contribute to greater diversification, the portfolio will continue to focus on commercial real estate. The purchase price for the full package is around €75 million, and a further €66 million or so will be needed to complete the development projects by early 2009. The overall investment will therefore amount to approximately €141 million.
On its domestic market of Austria, CA Immo currently owns 123 properties with a total value of €646 million. The domestic portfolio represents around one third of total assets and yields a profit in the region of 5.7%. Total investment of approximately €500 million is earmarked for 2007.
In addition to its recent acquisitions, CA Immo is current channelling its investment into the completion of the hotel and office building on Rennweg. Construction of another office property (with an investment volume in the area of €90 million) on Muthgasse in Vienna's 19th municipal district is scheduled to commence in the second half of the year. Negotiations over acquisitions totalling over €1 billion are in progress; the company is aiming to secure two large-scale transactions and, in particular, another package of properties.
Source: CA Immo