Immofinanz Group has sold its investment in the Andreas Quarter development project in Düsseldorf. The decision was taken in September, and the transaction closed in November: Immofinanz Group sold its 50% stake in the Andreas Quarter, a development project in Düsseldorf planned for realization through a 50:50 joint venture with FRANKONIA Eurobau AG.
For the Austrian real estate company, the sale generated a return of 7% on an investment of approx. 40 million. The buyer prefers not to be identified.
For Immofinanz Group, the sale of its stake in the Andreas Quarter represents the next step in the steady implementation of the corporate strategy to sell projects with non-controlling interests or to transform them into majority holdings.
The decision in favor of an exit reflected the fact that the Andreas Quarter, in the given joint venture structure, was not expected to generate the profitability required by a listed company over the medium term.
"The Andreas Quarter is an excellent, but very demanding development project. The usage concept represents a particular challenge, above all with respect to profitability, because of legal regulations covering the protection of historical buildings.
"Furthermore, the optimization of the portfolio is still one of our top priorities. The proceeds generated by the sale of the Andreas Quarter will be reinvested in our East European core markets, at locations where we expect the highest returns over the medium to long term: for example in Poland or Russia," explained Eduard Zehetner, Chief Executive Officer of Immofinanz Group, on this transaction.
Source: Immofinanz AG