IMMOFINANZ Group sells inner city palace in Vienna (AT)

IMMOFINANZ Group, Austria's largest real estate investor and developer, has sold a historical inner city office building in Vienna to a private asset management firm. This property was built in 1718 as the Batthyány Palace and is located at Bankgasse 2 in the first district.

The €22 million sale price for this property with over 3,300 m² of rentable space exceeds the carrying amount by more than 30%.

"Vienna is currently experiencing an increase in the demand for prime properties at central locations, and selling prices are consequently attractive. In this case the offering price was significantly higher than the carrying amount, and we were happy to take advantage of this opportunity," commented Eduard Zehetner, Chief Executive Officer of IMMOFINANZ Group, on this latest transaction. "The transaction also represents another positive outcome of our coming to terms with the past, since the property was part of the agreements related to the so-called IBAG bond."

In 2010/11 IMMOFINANZ Group approved a 5-year sale program with a total volume of €2.5 billion that is intended to adjust and strengthen the existing property portfolio. The sale of the Batthyány Palace marks the continuation of the company's success course in realising this programme. At the end of the first six months of 2011/12, IMMOFINANZ Group had already exceeded its target for real estate sales.


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