For Immofinanz AG and Immoeast AG, the year of 2009 was all about consolidation and adjustment of the portfolio. What progress was made in this regard?
2009 was a deciding year for the entire group. We were able to economically stabilize both companies, and the restructuring has successfully been completed in most areas. While in early 2009, the portfolio adjustment process was still driven by the need to create liquidity, we have now been able to set constructive steps towards a restructuring of the entire group since April of 2009.
What are the details of this portfolio adjustment?
In the future, we will focus our activities exclusively on the eight core countries of Austria, Germany, the Czech Republic, Slovakia, Hungary, Romania, Poland and Russia; in Russia, we are deliberately limiting our involvement to the metropolises of St. Petersburg and Moscow. All properties that are scattered across other countries, among them the USA, Western and South-Eastern Europe, are up for sale. We are also willing to sell shares in funds. What steps exactly we will set in this area in 2010 however is strongly dependent from the development of the total market. In the eight core markets, we want to focus exclusively on the office, retail, logistics and residential sectors. All other projects will be suspended. Our shares in parking garages in Austria, especially Vienna, were successfully sold in 2009; we also have similar plans for other real estate sectors that do not fit in anymore with the new Immofinanz Group.
Are infrastructure projects of interest to Immofinanz Group?
No; the business with infrastructure buildings is primarily for large construction groups. We want to solidify our basic portfolio in the eight core countries; building power plants or highways however is not part of that.
In December of 2009, the decision was made to merge Immofinanz AG and Immoeast AG. What does the time schedule for this process look like?
At our annual general meeting at the end of January, we will present the plans for the merger, followed by an objection period of one month. After this, the merger will be implemented swiftly from the corporate legal side. I anticipate the new company to be fully functional by late February.
What advantages is this merger expected to bring?
Most of all, it’s in the interest of the shareholders; we are bringing Immoeast up one level, providing Immoeast shareholders with access to the capital market that has not been available to them up until now. This way, we are also eliminating plenty of potential for conflict. Internally, a lot of work duplications and related high costs will disappear. By late February, we will once again have a powerful real estate company that stands on its own feet, with which we can aggressively pursue the development of promising projects.
Will other companies of Immofinanz Group also be affected by the merger, Buwog, for example?
No; Buwog is a 100-percent subsidiary. From today’s perspective, there is no structural need for changes. Buwog will continue to be primarily involved in the housing market in the future, thereby complementing the activities of its mother company.
How satisfied are you with the performance of the Immofinanz share prices?
Since I joined the company in November of 2008, share prices have performed well; today, we are up by well above two percent. Our current performance is no different than that of our competitors. Given a sound market development and a general economic upswing, I anticipate that we will generate good cash flow for our shareholders again as of 2010.
Will there also be changes with regards to distribution?
The previous cooperation with AWD was deliberately discontinued in 2009. In the future, there will no longer be exclusive rights for a single distribution partner, but instead we aim to establish a wide cooperation network with all of the country’s major financial institutions.
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