The IMMOFINANZ Group has signed agreements for the sale of nine fund investments to European investors. The purchase price will amount to 137 million to 140 million, depending on the development of foreign exchange rates over the next 12 months.
These investments were financed with 100% equity by subsidiaries of the IMMOFINANZ Group, and the company will therefore record an increase in cash equal to the sale price.
"These sales are further proof of the steady implementation of our new corporate strategy, which not only calls for a concentration on the four core segments of office, retail, logistics and residential properties, but also includes the sale of financial investments like funds and minority interests as well as the optimization of our property portfolio," commented Eduard Zehetner, CEO of the IMMOFINANZ Group, on this transaction.
"We were also able to complete this extensive sale at a price that reflected the carrying amount. The proceeds will be reinvested solely in high quality standing investments and development projects, in order to generate sustainable earnings for our shareholders," added Zehetner.
This transaction by the IMMOFINANZ Group covers the sale of investments in five European (Europa Emerging Europe Fund Ltd., Europa Fund II LP., FF&P Russia Real Estate Ltd., FF&P Development Ltd. and Polonia Property Fund Ltd. II) and four American (Carlyle Halley Co- Investment Inc., Prologis North American Industrial Fund II LP., Gotham City Residential Partners I LP. and Broadway Partners Real Estate Fund II, LP.) property funds.
After the conclusion of this transaction the IMMOFINANZ Group still holds investments in 18 funds with a combined carrying amount of slightly more than 160 million (as of January 31, 2011), which will be sold over the short- to medium-term.
Source: ACCEDO Austria GmbH