IMMOEAST Immobilien Anlagen AG, the leading listed real estate company in Central and Eastern Europe, has signed an extensive cooperation agreement with the well-known Ukrainian developer Alacor. Both companies will cooperate in the development of a high-quality real estate portfolio in the Ukraine. Investments will be made primarily in the area of logistics, but also in modern office space and retail properties.
The Ukrainian market offers excellent opportunities, IMMOEAST Chairman Karl Petrikovics points out. In spite of the vigorous increase in demand, there are basically still no state-of-the-art logistics facilities and with the development projects we realise in cooperation with Alacor, we will in all certainty be one of the first providers of modern, first-rate logistics space.
The two initial projects being carried out as part of the cooperation agreement are the logistics and office project Alacor Business Park City and Alacor Logistic Park Obukhov. The Business Park City is a mixed-use property with office and logistics space in the south of the capital Kiev. Completion of the 47,200 m² property is planned for 2009. Also located in the south of Kiev, Logistic Park Obukhov is even considerably larger at 113,000 m² and it profits strongly from its excellent transport connections. Obukhov will also be completed in 2009.
There will be a total of 160,000 m² of first-class lettable space at both properties. The investment volume exceeds $150 million (approximately €120 million). IMMOEAST will initially invest with a minority stake and has the option to take the properties over in full upon completion. For these investments Petrikovics anticipates returns which are far into the two-digit range.
As pointed out by both partners, Business Park City and Logistic Park Obukhov are only the beginning of much more extensive cooperation: Alacor has an extremely interesting project pipeline in all areas of real estate and the talks concerning IMMOEASTs involvement are progressing extremely well, says Petrikovics. With Alacor we have not only found an excellent partner for our entry on the Ukrainian market, but I anticipate that we are going to cooperate in the long term on this enormous and profitable, yet simultaneously extremely complex market.
For the 2006/07 business year IMMOEAST has announced an investment programme totalling a volume of €5 billion, which is to be financed with the capital increase for up to €3 billion still running until June 8. In this regard, the Ukraine is an important target market for investments outside of the EU.