IMMOFINANZ Immobilien Anlagen AG is considerably expanding its involvement in Bucharest. Through its subsidiary IMMOEAST it is the most active international investor on the booming real estate market in the Romanian capital and has a portfolio of lettable space totalling more than 160,000 m².
Extensive investments are currently being made in the IRIDE Business Park. At the advantageous location between the city center and the Otopeni International Airport, the first building of the third construction phase totalling 9.650 m² was recently completed and transferred to the telecommunication company Orange as the sole tenant. At approximately 13.000 m², the second building of the third construction phase shall be completed in May 2006. In October the current construction phase shall be concluded with the third building (8.750 m² lettable space).
The IRIDE Business Park, which at 55,000 m² was acquired in 2004 as IMMOFINANZs first investment in Bucharest, will then have a total of 87,000 m² of lettable space. Due to the strong demand for more space on the part of international companies, additional expansion is under consideration through which the IRIDE Business Park will grow to considerably beyond 100,000 m².
The very high occupancy rate at IMMOFINANZs flagship in Bucharest is extremely pleasing: all properties of the first two construction phases have been let in full. The same is true of the finished units from the third construction phase. For the properties under construction there is already a solid 70% pre-rental rate to important international companies such as a subsidiary of the General Electric Group, Bayer and Interbrew. Also the other IMMOEAST properties in Bucharest (Feper, Global Business Center, Otopeni, Bukarest Corporate Center, Pipera) are let in full.
IMMOEAST has initiated an additional investment in the area of the domestic airport Baneasa. The Baneasa Airport Tower has a lettable space of approximately 6100 m² which is well-suited for letting as a whole or on a small scale (starting at 500 m²). Construction work is already underway and completion is intended for spring 2007. The property is being built in the scope of a joint venture in which IMMOEAST holds 75%. Upon completion the remaining 25% shall be acquired.
The Baneasa Airport Tower lies in the Baneasa District on the main arteries leading to and from the north and is easily accessed by car as well as by public transportation from the center.
Bucharest is one of the primary markets in which we plan to make a series of investments in all real estate categories in the next few years, says Chairman Karl Petrikovics. In the office business we are already well-represented. In the future we plan to increasingly acquire and develop properties in the retail and logistics business as well.