Austria's Immofinanz completes exit from Swiss, USA markets
Listed Austrian commercial property developer Immofinanz is continuing its steady withdrawal from all non-core markets as part of its stated strategic plan of selling off €500m to €600m annually in assets over a five-year period. The company plans to refocus on core markets such as Germany and traditional CEE countries.
The original plan to sell €2.5bn assets within five years was exceeded after only four years, with the transactions resulting in a double-digit margin over the book value.
In Switzerland, Immofinanz sold two assets in Bülach, north of Zurich, and one in Derendingen near Berne with 140,000 sq.m. GLA, at a price of CHF115m (about €95m) exceeding book value. The buyer was a Credit Suisse commercial property fund. “This step completes our exit from the secondary market Switzerland,” said CEO Eduard Zehetner. “We were also able to benefit from the high CHF exchange rate on this transaction.”
The proceeds from the Swiss disposals will be used to develop logistics projects in Germany. “We want to further expand the position of our subsidiary Deutsche Lagerhaus as a key logistics player,” Zehetner said. Immofinanz holds 470 retail, office and logistics investment properties valued at €6.9bn across Austria, Germany, the Czech Republic, Slovakia, Hungary, Romania, Poland and Russia.
The company also effectively ended its involvement in the USA with the sale of three residential property developments in Houston, Texas, to local developer Sueba. Immofinanz received $60m (nearly €47.5m) for its 90% stake in the projects, again exiting above book value. The developments involved nearly 1,000 residential units. A further remaining small project for the sale of 277 apartments is also expected to be wound up before year-end.
Immofinanz now holds 470 retail, office and logistics investment properties valued at €6.9bn across Austria, Germany, the Czech Republic, Slovakia, Hungary, Romania, Poland and Russia.
Meanwhile Buwog, Immofinanz's erstwhile residential property division now equally focused on Austria and Germany and which listed on the Frankfurt Stock Exchange earlier this year, confirmed that it would be paying a dividend of €0.69 per share for the full year 2014, a dividend yield of 4.48%. Immofinanz has now effectively ceded control of the residential subsidiary to shareholders and local management, although chairman-to-be of Immofinanz from May 2015, Oliver Schumy, will also follow his predecessor Eduard Zehetner with a seat on the Buwog advisory board. The Buwog board also announced its intention to issue up to €390m of convertible bonds over the next five years.