IMMOEAST Annual Report 2006/07

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Regional distribution of letable space as a % of the portfolio 

As of 30 April 2007 

Other countries*) 4.8% 

Ukraine 2.2% 

Bulgaria 3.7% 

Russia 4.5% 

Slovakia 6.3% 

Czech Republic 14.1% 

Hungary 14.7% 

Think further, diversify better. 

IMMOEAST set not one, but numerous milestones 

during the past year with the expansion of business 

beyond its previous radius of action in Hungary, 

the Czech Republic, Slovakia, Poland, Romania and 

Bulgaria. The company entered a number of new 

markets during 2006/07 by completing the first 

direct investments in Russia, Ukraine, Serbia, 

Slovenia and Croatia – countries that are all characterised 

by enormous pent-up demand in the property 

sector. This led to the start of business activities 

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33.4% Romania 

16.3% Poland 

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*) Croatia, Serbia, Slovenia, Estonia, Lithuania 

in dynamic markets and created the foundation for 

future growth. It also broadened the distribution of 

investment risk and reduced the dependency on 

developments in individual submarkets. 

For IMMOEAST, responsible investment means 

quantifying risk as far as possible and matching 

this risk to the development of returns. And the 

expansion steps taken in 2006/07 meet both these 

objectives.

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Romania 

Poland 

Hungary 

Czech Republic 

Slovakia 

Russia 

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Bulgaria 

Ukraine 

Slovenia 

Croatia 

Serbia 

Estonia 

Lithuania 

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Sector distribution of letable space as a % of the portfolio 

As of 30.4.2007 

Recreation/Hotel 1.4% 

Parking 6.6% 

Residential 13.8% 

Logistics 14.2% 

Retail 30.0% 

More sectors, more stability, more know-how. 

Everysectorofthepropertymarkethasitsown 

speciallogic,anddemandcyclescandiffersubstantially 

in both form and intensity. In order to 

minimise the impact of these cycles on business, 

IMMOEAST works to achieve the broadest possible 

diversification by sector. The six major focal points 

of investment activities – offices, retail objects, 

logistics space, residential properties, parking and 

34.0% Offices 

recreation/hotels – are combined with a wideranging 

geographic commitment to form the basis 

for maximum earnings stability. This also makes it 

possibleforIMMOEASTtobuildupextensiveknowhowinallsectorsofthepropertymarket,which 

represents a key competitive advantage for the 

development of large multi-functional projects. 

*) Parking spaces are not shown separately on the following page because they do not represent individual buildings but a part of objects used for various purposes.

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2007/08 investment programme of EUR 6 billion by region 


Community of 

Independent 

States (CIS) 23.9% 

Central and Eastern 

Europe (CEE) 32.8% 

2007/08investmentprogrammeofEUR6billionbytypeofproject 


Strategic 

partnerships 9.0% 

Investment 

Properties 25.0% 

2007/08investmentprogrammeofEUR6billionbysector 




Offices 30.0% 

Additional information on the IMMOEAST growth course is provided under 

“Future Developments”, beginning on page 56 of this annual report. 

Wedon’tlooktowardthefuture–wecreateit. 

The2007/08financialyearwillalsobecharacterised 

by growth for IMMOEAST, with the implementation 

of a record investment programme that 

isexpectedtoreachnearlyEUR6billion.These 

projects will be financed with funds generated by 

the capital increase in May 2007, which raised 

equity of EUR 2.84 billion. When added to an 

average debt component of 50%, that means the 

financing for the entire investment programme 

is now available. All projects were evaluated by 

the IMMOEAST asset managers at the start of 

43.3% South-eastern Europe (SEE) 

66.0% Development projects 

61.0% Retail 

The focal point of investments 

will shift from Central and Eastern 

Europe to the South-east European 

countries of Bulgaria and Romania 

as well as Russia and Ukraine. 

In order to safeguard profitability, 

roughly two-thirds of the planned 

investments will represent development 

projects. 

Office space will decline as a percentage 

of the portfolio in favour of 

retail areas – apartments and logistics 

centres will continue to provide 

key support for diversification. 

the2007/08financialyearandapprovedbythe 

Supervisory Board. These investments will lead 

to a major shift in the IMMOEAST portfolio. The 

geographical focus will move from Central and 

EasternEuropetoSouth-easternEurope–and 

investments in the retail sector will increase, 

while office space will decline substantially in 

relation to the total portfolio. Investments in 

development projects will grow dramatically, 

and should represent roughly two-thirds of the 

total programme in 2007/08.

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8 IMMOEAST Annual Report 2006/07 

Key Data on IMMOEAST AG 

Corporate Data 

2006/07 Change in % 2005/06 

Revenues in EUR mill. 192.9 141.1% 80.0 

Operating profit (EBIT) in EUR mill. 541.3 246.4% 156.3 

Earnings before tax (EBT) in EUR mill. 645.5 252.8% 182.9 

Gross cash flow in EUR mill. 63.4 154.9% 24.9 

Return on equity (ROE) in % 10.9% 24.6% 8.7% 

Return on capital employed (ROCE) 1) in % 9.3% 3.9% 8.9% 

Equity in EUR mill. (including minority interest) 4,923.1 196.2% 1,662.0 

Equity as a % of the balance sheet total 73.2% 18.3% 61.8% 

Equity ratio in % (based on contracted investments) 46.8% 38.9% 33.7% 

Balance sheet total in EUR mill. 6,728.2 150.4% 2,687.5 

Net asset value per share in EUR 10.2% 20.4% 8.4% 

Property Data 

Number of properties 385 231.9% 116 

Thereof investments in other companies2) 172 266.0% 47 

Letable space in sqm 4,891,316 245.7% 1,414,961 

Thereof investments in other companies2) 1,491,741 497.8% 249,520 

Fair value of properties in EUR mill. (including contracted investments) 9,019.2 115.7% 4,181.0 

Thereof investments in other companies2) 786.9 345.3% 176.7 

Investments in EUR mill. 4,857.6 46.9% 3,305.7 

Stock Exchange Data 

Earnings per share in EUR 1.02 34.8% 0.76 

Price/earnings ratio 10.2 - 11.0 

Share price at end of period in EUR 10.4 20.9% 8.6 

Number of shares in mill. 555.9 150.0% 222.4 

Market capitalisation at end of period in EUR mill. 5,781.2 202.3% 1,912.2 

1) NOPAT (net operating profit after tax) in relation to capital employed. 

2) Investments in other companies include associates consolidated at equity and holdings 

recorded as financial instruments in accordance with IAS 39.

Contents 

Report by the Executive Board 11 

Highlights 2006/07 12 

Key investments in review 14 

IMMOEAST in European Comparison 1 

Business Model and Strategy 20 

Broad-based diversification of the property portfolio 21 

Strategic investments 22 

Management contract with Constantia Privatbank 26 

Property valuation 2 

Outlook and strategic goals 29 

Regional Portfolio Structure 30 

Business activities by region 32 

Sector Portfolio Structure 36 

Broad diversification across all major property sectors 36 

Investor Relations 46 

Capital market & development of share 47 

Corporate Governance 51 

Report of the Supervisory Board 54 

Future Developments 56 

Investment programme 2007/0 57 

Subsequent events 59 

Property Portfolio 62 

Development of Business 69 

Consolidated Financial Statements 101 

Consolidated balance sheet 102 

Consolidated income statement 103 

Statement of changes in equity 104 

Consolidated cash flow statement 105 

Segment reporting 106 

Notes to the financial statements 116 

Auditor’s report 242 

Analysis of results 244 

Valuation certificates 257 

Service and Glossary 264 

Report by the Executive Board 

Highlights 2006/07 

Business Model and Strategy 

Portfolio Structure 

Corporate Governance and Outlook 

Property Portfolio 

Development of Business 

Consolidated Financial Statements 

Service and Glossary

Report by the 

Executive Board 

IMMOEAST HAS STILL 

NOTREACHEDITSPEAK 

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Dear Shareholders, 

The goals set by IMMOEAST for 2006/07 can only be described as ambitious. Investments with a 

total volume of EUR 5 billion represent the most extensive growth programme ever undertaken by a 

property company in Central and Eastern Europe – and the results show that we were not only able 

to meet, but in some cases also exceed these far-reaching targets by a significant margin. The entire 

investment programme was prepared in detail at the start of the financial year and completed in full 

after the first three quarters. These activities allowed IMMOEAST to clearly expand its leading market 

position. An increase of 115.7% in the property portfolio to EUR 9.0 billion ranked the company 

far ahead of all competitors in the region. However, another factor just as important as the growth 

in size was the further improvement in the quality of the property portfolio: both the geographic 

and sector diversification were broadened during 2006/07, and this further increased the stability 

of earnings. IMMOEAST also expanded its activities in the development business and substantially 

strengthened its presence in the profitable emerging markets of South-eastern Europe. Furthermore, 

we completed our first investments in the rapidly growing and lucrative residential sector 

during the past year. These measures will play an important role in safeguarding the previous high 

level of earnings in the future. 

Our investments in numerous leading property developers have a special strategic importance 

– above all TriGránit, a company that plans to compile a development portfolio of several billion 

Euros over the coming years. These investments create interesting prospects for strong earnings 

growth, and also give IMMOEAST preferential access to acquire the developed properties after 

completion. 

The dynamic growth recorded during the past year led to an enormous improvement in the company’s 

financial indicators, even though the extensive commitments in development projects will only 

have a full impact on earnings in later years. Revenues rose by 141.1% to EUR 192.9 million and 

EBIT by 246.4% to EUR 541.3 million. Earnings per share – the most important indicator for you as 

a shareholder – increased from EUR 0.76 to EUR 1.02. 

This positive and sustainable development was also honoured by the capital market. In spite of difficult 

conditions on global stock exchanges, IMMOEAST was able to place a EUR 2.75 billion capital 

increase at the start of the financial year without difficulty. In addition, the price of the IMMOEAST 

share rose by nearly 21% during 2006/07. 

The outlook for the future development of IMMOEAST is also highly promising. A EUR 2.84 billion 

capital increase placed at the start of the 2007/08 financial year created the financial basis to 

continue our growth course. We were able to realise approximately EUR 2.3 billion of the planned 

investment volume of roughly EUR 6 billion by the end of June. The property portfolio, including 

contracted investments, is forecasted to reach nearly EUR 13 billion by the end of this financial 

year. IMMOEAST now has the necessary foundation to maintain and expand its dominant position in 

Central, Eastern and South-eastern Europe, one of the fastest growing and most attractive property 

markets in the world. We are convinced that you, as a shareholder, will be able to profit from the 

dynamic growth of IMMOEAST. 

Norbert Gertner, 

Member of the Executive Board 

Karl Petrikovics, 

Chief Executive Officer 









Service and Glossary 

All targets met or 

clearly exceeded 

Strategic investments in 

leading property developers 

Significant improvement in 

all earnings indicators 

Annual share performance 

rises to nearly 21% 

Capital increase in May 2007 

creates basis for for further further 

dynamic growth growth


Largest capital 

increase by a 

European property 

company 

During the 2006/07 financial 

year IMMOEAST created a 

solid foundation for strong 

growth with a successful capital 

increase in June 2006. This 

EUR 2.75 billion issue represented 

the largest capital 

market transaction by a European 

property company to 

date and, since that time, has 

only been exceeded by the 

IMMOEAST capital increase in 

May 2007. 

EUR 5 billion 

invested 

A record investment programme 

of EUR 5 billion was 

realised during 2006/07. 

The detailed preparations 

were completed at the start 

of the financial year, which 

permitted the conclusion of 

all transactions during the 

first three quarters. This 

expansion made IMMOEAST 

the fastest growing property 

company in the region, with a 

steadily increasing lead over 

its competitors. 

Investment 

in TriGránit 

In August 2006 IMMOEAST 

acquired a 25% stake in 

the Hungarian TriGránit, the 

leading property developer in 

Central, Eastern and Southeastern 

Europe. This firm, 

which has already compiled a 

development portfolio with a 

volume of roughly EUR 8 billion 

in 11 countries, is a specialist 

for large assignments, 

in particular multi-functional 

urban development projects. 

All completed objects are 

first offered to IMMOEAST for 

acquisition, which will create 

excellent opportunities for 

investment and growth over 

the middle and long-term. 

Number 2 in 

Continental Europe 

The capital increase and 

strong development of 

the share price pushed 

IMMOEAST forward in the 

ranking of major listed 

property companies in 

Europe. Market capitalisation 

of EUR 5.78 billion at the end 

of the 2006/07 financial year 

made IMMOEAST the number 

four in Continental Europe. 

At the end of June 2007, 

IMMOEAST advanced 

to the number two position 

with market capitalisation of 

more than EUR 8.73 billion. 

Start in Ukraine, 

Russia and 

ex-Yugoslavia 

The geographic diversification 

of the property portfolio 

was substantially broadened 

during 2006/07. Activities 

focused on the rapidly growing 

and profitable markets of 

Ukraine and Russia, while the 

first direct investments were 

made in Slovenia, Croatia and 

Serbia, the successor states 

of the former Yugoslavia. 

IMMOEAST is now present in 

13 countries and all key markets 

of Central, Eastern and 

South-eastern Europe as well 

as the former Soviet Union. 

Investment in 

Adama 

IMMOEAST significantly 

strengthened its business 

activities in the profitable 

residential sector by acquiring 

a stake in Adama, a leading 

Romanian developer of 

residential properties. Adama 

intends to use Romania as a 

base for expansion throughout 

the entire region. Specific 

projects are currently in the 

preparation stage, above all 

in the neighbouring countries 

of Ukraine, the Republic of 

Moldavia and Serbia. Adama 

has a development portfolio 

with 8,000 apartments, and 

preparations for 20 other 

projects are in progress. 

These apartment complexes 

are not held as long-term 

investments, but sold as 

condominium units. 

20.9% increase in 

share price 

The shareholders of 

IMMOEAST were again able 

to enjoy an excellent return 

in 2006/07. With an increase 

of 20.9% in the share price, 

this financial year marked 

the highest-ever performance 

for the company’s owners. 

The average annual performance 

of the IMMOEAST 

share since the initial public 

offering in December 2003 

rose to 19.3%.

EBIT: +246.4% 

in EUR million 


600 

500 

400 

300 

200 

100 

0 

2003/04 2004/05 2005/06 2006/07 

Strong growth in revenues 

and rising property prices led 

to an improvement of more 

than 246% or EUR 541.3 

million in operating profit 

(EBIT) during 2006/07. This 

represents the second year in 

succession with a more than 

twofold increase in EBIT. 

Net Asset Value: 

+21.4% 

in EUR per share 


12 

10 

8 

6 

4 

2 

0 


Over 333.5 million new shares 

were issued as part of the 

capital increase in 2006/07. 

In spite of this development, 

net asset value, which 

represents the inherent value 

of the stock, rose by 21.4% 

to EUR 10.2 per share. The 

net asset value of IMMOEAST 

tripled to an absolute total 

of nearly EUR 5.6 billion. 

Revenues: 

+141.1% 



200 

150 

100 

50 

0 


Growth of 146% in rental 

income to EUR 146.2 million 

supported a twofold increase 

in Group revenues – which 

include operating costs, 

proceeds on the sale of properties 

and other income – to 

more than EUR 192.9 million. 










Gross Cash Flow: 

+154.9% 



60 

50 

40 

30 

20 

10 

0 


Gross cash flow rose by 

154.9% to EUR 63.4 million 

– and demonstrates the 

steady improvement in 

the internal financing power 

of IMMOEAST.


i 1 i 

Haller Gardens 

i 2 i 

Antim Tower 

i 3 i 

Golden Babylon 

i 4 i 

IMAK Portfolio 

Investment in 

TriGránit 

Key investments in review 

IMMOEAST accelerated its investment activity to a new record level in 2006/07. A total of 269 transactions 

with a total volume of EUR 5 billion were completed during this period. Acquisitions focused 

primarily on very large objects, with no less than 21 transactions reaching a dimension of more than 

EUR 100 million. The geographic focus of investments was placed on South-eastern Europe, while 

the sector distribution showed a concentration on retail properties. 

At the start of the financial year, IMMOEAST 

acquired the Haller Gardens, an office project 

in Budapest with 49,000 sqm of letable space. 

The object is under construction by AIG Lincoln, 

one of the best known property developers in 

the world. Completion is scheduled for the summer 

of 2008, and the investment totals nearly 

EUR 80 million. 

In December 2006 IMMOEAST purchased a 

mixed use property in the Bulgarian capital 

of Sofia with roughly 10,000 sqm of letable 

space. An additional 90,000 sqm of modern 

office and retail areas will be added 

to this object in several stages by 2012. 

The investment for the Antim Tower with more than 

100,000 sqm of letable space will total approximately 


IMMOEAST completed its first direct investment in Russia 

during June 2006 with the purchase of two shopping 

centres in Moscow. The Golden Babylon I and II have a 

combined total of nearly 60,000 sqm of letable space 

and are fully occupied. This investment has a volume of 


In June 2006 IMMOEAST increased its previous 56.6% stake in 

IMAK CEE to 100%. This firm holds a portfolio of 11 fully occupied 

logistics and office properties in Hungary and Poland. The properties 

have letable space totalling 165,000 sqm and a fair value 

of roughly EUR 280 million. 

The largest investment of the 2006/07 financial year was closed 

in August 2006: IMMOEAST acquired a 25% stake in the Hungarian 

TriGránit, the leading property developer in Central, Eastern 

and South-eastern Europe, for EUR 400 million. This highly profitable company is specialised in 

very large assignments and has completed a number of outstanding urban development projects. 

TriGránit currently holds a development portfolio with a value of EUR 8 billion in 11 countries. 

1 

2 

3 

4

6 

5 

7 

Key investments 

In August 2006 IMMOEAST acquired the majority stake in 

one of the largest office development projects in the Polish 

capital. The Equator Office in the dynamic Jerozolimskie 

business corridor has 125,000 sqm of letable space, comprising 

85,000 sqm of offices as well as warehouse and 

retail areas and underground garages. The investment volume 

totals EUR 190 million. 

Together with local partners IMMOEAST started work on 

four residential projects in August 2006 with a total of 

2,000 apartments in Poland, Slovakia, Romania and Bulgaria. 

This represents the first large-scale investment in the 

construction of condominium facilities. The four projects 

have a total volume of EUR 180 million. 

Another major investment was completed during August 

2006 with the acquisition of the Jandarmeriei Office in 

Bucharest. Roughly 40,000 sqm of letable space will be 

constructed on this site by 2010 at a total investment of 

EUR 80 million. IMMOEAST also acquired the adjoining 

project, Jandarmeriei Residential, which involves the construction 

of 360 apartments. 

IMMOEAST completed its first investment in Slovenia 

during September 2006 with the purchase of two 

specialty shopping centres. These objects are 

located in Kranj and Nove Mesto, and have a total of 

19,000 sqm that is fully occupied. The objects have 

an investment volume of EUR 22.5 million. 

The Diamond Point office building in Prague was 

acquired during autumn 2006. This object has 

27,000 sqm of letable space that is fully rented to 

well-known companies through long-term contracts. 

The investment totals roughly EUR 70 million. In a 

subsequent step 49% of the shares will be sold to 

the Allianz Group, one of the lead tenants. 

In autumn 2006 IMMOEAST increased its stake in the Mester Business Park from 45% to 75%. This 

major project will involve the construction of up to 250,000 sqm in letable space at a central location 

by 2010. The first stage of construction at the Mester Park was completed shortly after the end 

of the 2006/07 financial year. 

The purchase of the Galerija Apartmani (Francuska) residential project in August 2006 marked 

the entry of IMMOEAST into the promising Serbian property market. Plans call for the construction 

of more than 100 apartments, 1,100 sqm of offices, 1,000 sqm of retail areas and 184 underground 

garage spaces at a central location by the end of 2008. The investment volume equals 

EUR 13.3 million, and all apartments will be sold as condominiums. 










i 5 i 

Equator 

Residential projects with a 

total of 2,000 apartments 

i 6 i 

Jandarmeriei Office 

Specialty shopping centres 

in Slovenia 

i 7 i 

Diamond Point 

Acquisition of majority 

stake in Mester Park 

Galerija Galerija Apartmani 

Apartmani 

(Francuska) residential 

project


i 8 i 

Polus Center Cluj 

i 9 i 

Mokotow Business Park 

i 10 i 

5th Avenue 

i 11 i 

Brama Zachodnia 

i 12 i 

Grand Center Zagreb 

Grand Center Pardubice 

IMMOEAST carried out its largest investment in 

Romania during November 2006 with the acquisition 

of the Polus Center Cluj, a shopping centre 

that is located in Cluj in the booming province of 

Transylvania. With 100,000 sqm of letable space, 

it is one of the largest shopping centres in Romania. 

The investment totals EUR 210 million, and 

88% of the space was let several months before 

the completion of construction. 

In November 2006 IMMOEAST acquired the Mokotow 

Business Park through a 50:50 joint venture 

with Heitman European Property Partners, a firm 

in which IMMOEAST holds a stake of 7.13%. The 

Mokotow is the largest office complex in Warsaw 

and comprises nine buildings with 136,000 

sqm of letable space and an excellent level of 

occupancy. In addition, the building permit was 

granted for an additional office building. The total 

investment volume equals EUR 260 million. 

The 5th Avenue shopping centre in Moscow was purchased in 

November 2006. This object is located in the Shukino district 

in the north-western section of Moscow and has 45.000 sqm 

of letable space, which is fully rented to well-known international 

retail chains. The investment in this project amounts to 


IMMOEAST acquired the Brama Zachodnia office property 

in Warsaw during autumn 2006. This object is located in the 

Jerozolimskie business corridor and has 36,000 sqm of space 

that is fully let to major international corporations. IMMOEAST 

invested a total of EUR 80 million in this project. 

In November 2006 IMMOEAST completed its first investment 

in Croatia by acquiring the recently completed Grand Center in 

the capital city of Zagreb. The property’s 21,400 sqm are fully let, and the largest 

tenants are international corporations that include Generali and Strabag. 

The investment volume totals EUR 40 million. 

The Grand Center Pardubice shopping mall in the North Bohemian city of 

Pardubice was acquired in November 2006. This fully let object has 18,000 

sqm of space and a total investment volume of EUR 28 million. 

8 

10 

9 

11

13 

In December 2006 IMMOEAST acquired three fully let objects with a total of 

73,700 sqm in the BB Centrum office park, one of the top office locations in 

Prague. The investment volume totals EUR 160 million. 

16 

12 

The Polus Center in Constanta 

was purchased in March 2007. 

This object has 90,000 sqm 

and is scheduled for completion 

in autumn 2008. It will 

become the largest shopping 

centre in this Black See 

metropolis, which has a population 

of more than 300,000. 

The investment by IMMOEAST 

amounted to EUR 185 million. 

In March 2007 IMMOEAST 

acquired a large portfolio with 

five objects in Prague and Brno. 

Roughly two-thirds of the 110,000 

sqm letable space represent offices, 

while the remainder comprises 

retail areas. Two of the objects 

are still under construction. 

The investment volume equals 

EUR 210 million, making this 

project the largest commitment 

by IMMOEAST to date in the Czech 

Republic. 

IMMOEAST acquired a strategic investment of 25% in Adama, a residential 

construction group that is active in South-eastern Europe, for 

EUR 60 million during March 2007. This company has already completed 

projects with a value of EUR 600 million, and has a development 

portfolio of 8,000 apartments. A further 20 projects are currently under 

preparation in Romania, Ukraine, Serbia and the Republic of Moldavia. 

Shortly before the end of the financial year in April 2007 IMMOEAST acquired the recently completed 

Victoria Park in Bucharest. This object is located at a prime site between the city centre and 

international airport, and has nearly 30,000 sqm that are fully let to international corporations. The 

investment by IMMOEAST totalled EUR 60 million. 

Information on investments concluded after 30 April 2007 is provided 

in the section “Subsequent events” beginning on page 59. 

15 

14 

Key investments 










i 13 i 

BB Centrum 

i 14 i 

Polus Center Constanta 

i 15i 

Portfolio in 

Prague and Brno 

Investment in Adama 

i 16 i 

Victoria Park

IMMOEAST in 

European Comparison 

SELECTIVE GROWTH 

ANDASTABLEBASIS 

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Advance to number 2 in Continental Europe 

IMMOEAST further improved its standing in branch comparison during 2006/07 and continued the 

rapid ascent it has recorded over recent years: At the end of the 2006/07 financial year IMMOEAST 

was the fourth largest property company in Continental Europe based on market capitalisation. By 

the end of June 2007 IMMOEAST ranked second, directly behind the merger giant Unibail-Rodamco 

and clearly ahead of all other competitors. 

15 

12 

9 

6 

3 

0 

14.0 

Unibail- 

Rodamco 

9.2 

IMMOFINANZ 

Group 

4.8 

The corporate group comprising IMMOEAST and its parent company IMMOFINANZ was also able to 

improve its position in European comparison during 2006/07, with market capitalisation rising to 

EUR 9.2 billion by the end of June 2007. 

Number 1 in Eastern Europe 

This rapid advance reflects the company’s active growth strategy as well as a strong rise in the 

importance of property markets in the east. While property companies in the west act on largely 

developed markets, the east is characterised by a stormy recovery process that makes it possible 

for market players to generate relatively high rates of growth. 

An evaluation of property companies across the whole of Europe 

is more of a general benchmark, but a direct comparison with 

competitors in Central, Eastern and South-eastern Europe is a 

key indicator for performance. This ranking shows IMMOEAST far 

ahead of its next largest competitor based on market capitalisation, 

and the other companies are not half as large. Based on 

the property portfolio and investment volume, the lead is even 

greater. IMMOEAST is not only one of the most important players 

on the property markets in this region but also holds leading 

positions on numerous submarkets, including key cities like 

Bucharest, Budapest and Prague. 

This dominant market position makes IMMOEAST the preferred 

contact for major property developers, which also brings numerous 

offers to participate in or acquire attractive projects. That, 

in turn, creates additional prospects for growth and a steady 

improvement in earnings for IMMOEAST. The size of the portfolio 

also allows for greater diversification and the fine-tuning of 

regional and sector investments. 

4.4 

3.9 

IMMOFINANZ IMMOEAST Corio Klepierre Rodamco 

Europe 

2.9 

2.7 

2.5 

IVG 

Immobilien 

IMMOEAST in Comparison 

2.2 

Wereldhave 

1.9 

PSP Swiss 

Property 

A prize-winning job 










IMMOEAST has established a 

firm position as as one of the top 

European property companies 

in only a few years. 

IMMOEAST in Continental 

European Comparison 

Market capitalisation based on 

free float in EUR billion 


The successful expansion and investment strategy of IMMOEAST 

have gained significant recognition in the property branch, and 

were also reflected in numerous honours during 2006/07. Two 

of the most important property awards in Central, Eastern and 

South-eastern Europe were presented to IMMOEAST during the 

past year. 

At the South-eastern Europe Real Estate Awards, which are presented 

by the “Europaproperty” business journal, IMMOEAST 

was named “Investor of the Year” in South-eastern Europe for 

2007 and was also honoured as “Property Company of the Year 

in South-eastern Europe” in the total ranking for all sectors of 

the property industry (investors, developers, banks, brokers 

and service companies). Only several weeks before this event, 

IMMOEAST was recognised as “Investor of the Year” at the Central 

& Eastern Europe Real Estate Quality Awards in Warsaw.

Business Model 

and Strategy 

DISTRIBUTION OF RISK THROUGH 

REGIONAL AND SECTOR DIVERSIFICATION 

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Broad-based diversification of the property portfolio 

Diversification 

The property markets in Central, Eastern and South-eastern Europe can in no way be classified as 

homogenous. Despite the many common factors – ranging from geographical proximity to a Communist 

past – there is a strong inherent differentiation. This applies to the various country markets as well 

as the individual property sectors. However, the correlation has weakened in recent years and the 

differences in the development of the many submarkets have become greater. A broadly diversified 

property portfolio is therefore connected with significantly greater security and stability for earnings 

and an increase in value than a portfolio that focuses only on selected countries or sectors such as 

offices, retail objects or residential properties. 

IMMOEAST has pursued a strategy of diversification since its founding, and has steadily increased 

this diversification over the years. That gives the company a very special position among the many 

listed property corporations that invest exclusively or predominately in Central, Eastern and Southeastern 

Europe. 

The geographic and sector diversification process was largely concluded during the 2006/07 financial 

year. Following the completion of its first direct investments in Russia, Ukraine, Serbia, Croatia 

and Slovenia, IMMOEAST is now represented in 13 countries and all major submarkets of the region. 

The company’s entry into the residential market with 10 projects, which cover 3,400 apartments 

in five countries, completed this sector diversification – and established IMMOEAST in the office, 

retail, logistics and residential sectors. 

Flexible concentration of business activities 










Greater earnings stability and 

increase in in value with broad 

sector diversification 

Special Special position position in in Central, Central, 

Eastern and South-eastern 

South-eastern 

Europe 

Diversification with start in in 

five five additional additional countries and 

entry entry into residential sector 

The broad diversification of the property portfolio is an essential requirement for the implementation 

of another basic principle of the IMMOEAST investment strategy: the company does not follow a 

pre-defined, strict asset allocation policy in its acquisitions, but continually adjusts the focal points 

of its investment activities to reflect market trends. That allows IMMOEAST to make optimal use 

of new opportunities that are created by developments on the various submarkets. For example, 

in 2006/07 the share of investments in the Central European countries that joined the EU during 

2004 was substantially reduced in favour of projects in South-eastern Europe, above all the new 

EU member states of Romania and Bulgaria. In addition, the shift of investments from offices to 

retail objects will allow IMMOEAST to increase its presence in a property sector that is particularly 

attractive at the present time. 

Competitors that do not have a broadly diversified portfolio are generally unable to utilise these 

opportunities for practical reasons: the lead time for entering a market segment is normally too long 

to react quickly when new developments are identified. Only an investor with the necessary detailed 

market know-how and established contacts in a submarket can increase the investment volume in 

a particular segment fast enough to benefit from a changing situation. 

Close cooperation with the broker group CPB Immobilientreuhand (a subsidiary of Constantia 

Privatbank) also makes it possible for IMMOEAST to efficiently adjust its investment strategy to 

meet changing market conditions. Numerous consultations over property rentals make it possible 

to identify customer needs at an early point in time and subsequently include these requirements 

into the planning for new IMMOEAST projects.


Combination of investment 

properties, development 

projects and investments in 

property companies 

Entry in new markets 

generally starts with indirect 

investments 

Strategic investments in in other other 

companies guarantee preferred 

access to attractive projects 

over the mid- and long-term 

However, IMMOEAST not only follows the usual criteria for geographic and sector diversification. 

Another important aspect is the distribution of objects according to various stages of development. 

The acquisition of development projects was increased as a supplement to the purchase of completed 

objects in 2006/07, and the investment programme for 2007/08 calls for the volume of development 

projects to exceed investment properties for the first time. 

IMMOEAST also focuses on diversity in structuring its business activities – which means the 

investment programme includes the acquisition of objects and realisation of development projects 

through joint ventures as well as indirect investments through holdings in property companies. 

These stakes in local specialists or leading regional property developers also secure excellent 

investment opportunities for IMMOEAST over the mid-term, since agreements are generally concluded 

that require these companies to first offer their developed objects to IMMOEAST for acquisition 

(“right of first opportunity”). 

Holdings in and cooperation projects with local partners are also used by IMMOEAST to minimise 

the risk associated with entry into new markets. For this reason, the start of business in new 

“IMMOEAST countries” generally takes place through a joint venture or the purchase of a stake in 

a local firm. The development of IMMOEAST activities on the Russian market is an example of this 

approach: in 2005/06 the company acquired stakes in two Russian specialists, EPH and Fleming 

Family & Partner, and subsequently completed its first direct investments during 2006/07 with the 

acquisition of several shopping centres in Moscow. 

Strategic investments 

IMMOEAST holds investments in numerous property companies throughout Central, Eastern and 

South-eastern Europe as well as in Russia and Ukraine. These companies include property developers, 

local specialists and well-known international firms that are active in numerous countries 

of the region. This approach meets two objectives – IMMOEAST is able to realise good returns 

with its investments in successful property companies, while the holdings also establish preferred 

access to the projects developed by these companies and thereby provide attractive opportunities 

for acquisitions over the mid- and long-term. 

In 2006/07 IMMOEAST acquired stakes in a number of major property companies. Together with 

the strategic holdings purchased in previous years, these investments will play an important role 

in providing IMMOEAST with a wide selection of profitable investment opportunities in all regions 

and sectors. As a rule, the access to these projects is secured through a “right of first opportunity”, 

which means that completed objects must first be offered to IMMOEAST for purchase and may only 

be sold on the market if IMMOEAST chooses not to make the acquisition.

PL, Katowice, Debowe Tarasy – Silesia City Center Residential 

Strategic Investments 

TriGránit: leading property developer in Eastern Europe 

The largest holding acquired by IMMOEAST to date and, at the same time, the largest investment 

transaction of the 2006/07 financial year was the purchase of a stake in the Hungarian property 

developer TriGránit Holding Ltd. IMMOEAST acquired 25% of this firm for EUR 400 million. TriGránit 

has been active in Central, Eastern and South-eastern Europe for roughly ten years, and has established 

a position as the region’s leading property developer. 

TriGránit held a development portfolio with a value of roughly EUR 8 billion in 13 countries at the 

end of April 2007. The business activities of this firm are concentrated on multi-functional urban 

development projects and large shopping centres. It has also carried out major assignments in the 

office, residential, hotel and recreation sectors as well as infrastructure projects and conference 

centres. TriGránit was one of the first companies to become active in Central and Eastern Europe 

through public-private partnerships. This form of cooperation between federal and local authorities 

is expected to play an increasingly important role over the coming years. 

TriGránit was able to complete a highly unusual transaction in Russia during the early months of 

2007 by signing a framework agreement for the realisation of 30 urban development projects in 

major Russian cities with Gazprombankinvest, a member company of the Gazprom Group. These 

development projects will have a minimum volume of EUR 5 billion, and will create a wide range of 

investment opportunities for IMMOEAST on the Russian market. The TriGránit pipeline also contains 

interesting projects in other countries, such as the Zagreb Arena in Croatia, the Bonanka City Center 

in Krakow, Poland, and the Passanger Center Ljubljana in Slovenia. 

An initial public offering by this company is also a realistic option because of its size, earning power 

and market potential as well as the excellent reputation of TriGránit. This possibility is currently under 

evaluation, whereby current plans indicate that an IPO by TriGránit would be possible in 2009. 










The The TriGránit holding is 

the the largest investment 

by by IMMOEAST IMMOEAST to date at 

EUR 400 million 

Diversified development 

portfolio portfolio of EUR 8 billion 

in 13 countries countries 

H, Budapest, Duna Pest


Development portfolio 

with 8,000 apartments 

Expansion into other 

markets in South-eastern Europe 

(Serbia, Ukraine, Republic 

of Moldavia) 

Focus on development 

projects in the Czech Republic, 

Poland and Romania 

CZ, Prague, Vitek 

CZ, Prague, Pankrác Business Corner 

Adama: leading residential property company in Romania 

IMMOEAST acquired another strategic investment in Romania during March 2007 by purchasing 

a 25% stake in Adama, a development company that is specialised in residential projects. With 

EUR 600 million of realised projects and a development portfolio of 8,000 apartments, Adama is 

one of the leading property developers in the residential sector of Romania and the entire Southeast 

European region. The purchase price for the Adama investment, which was acquired for the 

most part through a capital increase, totalled EUR 60 million. 

Adama intends to use the funds raised through the capital increase to finance an extensive expansion 

programme. A total of 20 major residential construction projects are currently in preparation, 

which will allow Adama to further strengthen its strong position in Romania and also expand into 

other markets of South-eastern Europe. Projects in Ukraine, the Republic of Moldavia and Serbia 

have already entered the planning phase. In all four countries where Adama has invested or plans 

to invest, the residential property markets have registered high growth rates and the prices realised 

on apartment sales have been highly satisfactory. 

S+B CEE: Development projects in the Czech Republic, Poland and Romania 

In 2002/03 IMMOEAST acquired a 50% stake in S+B CEE, the East European subsidiary of the wellknown 

Austrian property developer S+B. Since that time, the scope of business has grown significantly 

and S+B CEE now manages development projects in the Czech Republic, Poland and Romania, 

above all in the office and retail sectors. 

This successful cooperation began with a series of projects in Prague, including the Park Hostivar 

shopping centre (23,900 sqm) and the Vitek office and retail complex (52,600 sqm). A number 

of these properties have since been acquired by IMMOEAST. At the end of 2005/06 S+B CEE 

started work on the Rondo Jaszdy Polskiej office complex in Warsaw. The investment volume for this 

centrally located object with 20,000 sqm of letable space totals EUR 36 million. S+B CEE is also 

a key development partner of IMMOEAST in the expansion of the STOP.SHOP. specialty shopping 

centre chain.

Prime Property: leading property developer in Bulgaria 

In Bulgaria IMMOEAST holds an investment of 42.23% in Prime Property. This company has grown 

rapidly since the entry of IMMOEAST and established a position as the leading property developer 

on the second largest market in South-eastern Europe. 

The business activities of Prime Property include highly successful holiday apartment projects on 

the Black Sea as well as the development of office buildings in Sofia. At the end of 2006/07 the 

development portfolio of Prime Property comprised six projects. 

RUS, Moscow, Mosmart Hypercenter 

Strategic Investments 

Eastern Property Holdings (EPH): on growth course in Russia 

IMMOEAST acquired an investment in Eastern Property Holdings, a company that trades on the 

Zurich Stock Exchange, in June 2005 and has gradually increased its holding since that time. At the 

end of 2006/07 IMMOEAST owned a stake of 19.78% in EPH. 

EPH is active as a developer and investor on the Russian market. In 2006 this company recorded 

an increase of 175% in its property portfolio to USD 140.6 million as well as earnings of USD 27 

million. As of 31 December 2006 EPH owned or held investments in five retail, office and logistics 

objects in Russia with 48,000 sqm of letable space. Among others, EPH holds stakes in a number 

of properties owned by the leading retail chain Mosmart. The largest investment made by EPH in 

the past year was the acquisition of the multi-functional Pertrovsky Fort with roughly 22,400 sqm 

of gross space for USD 65 million. 

The IMMOEAST investment in Eastern Property Holdings represented a value of EUR 56.6 million at 

the end of 2006/07 based on the share price. The annual performance of the EPH share equalled 

7.4% as of 30 April 2007. 










42.23% stake in leading 

property property developer on growth 

market Bulgaria 

19.78% stake in listed 

Russia specialist 

BG, Sofia, Cerkovna


Management of IMMOEAST 

business operations is covered 

by management contract 

Performance-based 

management contract 

beginning in 2007/08 2007/08 

Management contract with Constantia Privatbank 

The direction of business and the management of IMMOEAST and its parent company IMMOFINANZ 

have been handled by Constantia Privatbank since the founding of these two companies. The contract 

covers the management of business operations, which include the duties of the Executive 

Board and other key managers of IMMOEAST as well as controlling, finance and accounting, treasury, 

investments and the representation of owner interests for the company’s property portfolio. 

IMMOEAST does not have a separate staff – Constantia Privatbank also provides the entire infrastructure 

for business operations (offices, furnishings, IT etc.). 

The services performed by Constantia Privatbank are covered by a flat-rate management fee that 

equals 1% of new investments plus 0.6% of the portfolio objects at the beginning of the year, whereby 

this fee is linked to the consumer price index. 

Roughly 500 employees of the Constantia Privatbank Group performed services on behalf of 

IMMOEAST during the 2006/07 financial year. This arrangement allows the company to profit from 

the broad-based expertise of Constantia Privatbank, which manages a wide range of investment 

products for the property sector – including property funds, property investment funds, ownerresident 

properties and apartments for retirement income, closed property funds etc. – and has 

extensive personnel resources for these activities. 

Amendment of management contract beginning in 2007/08 

The Supervisory Board approved an amendment to the management contract after the end of the 

reporting year. This modification reduces the fixed management fee and introduces a performancebased 

bonus that will be paid when a pre-determined increase in net asset value (NAV) per share 

is realised. 

The new guideline also calls for the payment of only the base fee of 0.6 percentage points to 

Constantia Privatbank for newly acquired objects, which is 0.4 percentage points less than the 

previous charge. When net asset value (NAV, inherent value) per share rises by more than 8% after 

payment of the base fee, Constantia Privatbank is entitled to a bonus. This bonus equals 20% of 

the increase in value over 8 percentage points. 

The new guideline took effect at the beginning of the 2007/08 financial year. Constantia Privatbank 

has accepted this amendment to the management contract.

Management contract 

Asset management by 46 highly qualified specialists 

The core of the team that works for IMMOEAST is formed by the asset management department. 

These experts are responsible for new investments as well as the management and optimisation of 

the property portfolio: 46 highly qualified specialists are active in this area of business. 

The asset management department of IMMOEAST is divided into four groups, which are managed 

by well-known experts with many years of experience in their fields: 

— Günther Bukor heads the group for direct property investments in South-eastern Europe, 

Russia and Ukraine. 

— Peter Oesterle heads the group for direct property investments in Central and Eastern Europe. 

— Edgar Rosenmayr heads the group for investments in other companies throughout the entire 

region as well as residential projects in Ukraine, in Russia and the Baltic States. 

— Walter Wölfler heads the group for shopping malls and specialty shopping centres in all countries 

of the region. 

Rental & property management 

The cooperation with Constantia Privatbank gives IMMOEAST a number of key advantages above 

and beyond the management contract – and these advantages are created above all by the Constantia 

Privatbank subsidiaries that are active in the property sector and by their expansion into Central, 

Eastern and South-eastern Europe. 

CPB Immobilientreuhand, Austria’s leading office broker, has founded subsidiaries in five countries 

– Hungary, the Czech Republic, Poland, Slovakia and Romania – and is now represented on the 

most important markets of the region. CPB plays a key role in the rental of the IMMOEAST properties 

and is a valuable addition to the local and international brokers with whom IMMOEAST also works. 

This creates a major competitive advantage over firms that do not have brokerage functions. 

The close cooperation with CPB also gives IMMOEAST an important head start during the planning 

stage for new projects and the evaluation of investment opportunities: the information on market 

developments and changing needs that is collected during the many discussions with potential 

tenants can flow directly into investment or planning decisions. 

IMV Immobilienmanagement und -verwaltung (IMV) is one of the leading property management 

companies in Europe with more than 3 million sqm of managed space. Similar to CPB, IMV also 

has subsidiaries in Hungary, the Czech Republic, Poland, Slovakia and Romania. Since many local 

property management companies in Central and Eastern Europe still have serious quality problems, 

the IMV network – which provides IMMOEAST with unlimited support – also forms a key competitive 

advantage. That guarantees the same quality of services and efficient property management found 

in Austria and other western markets. 










Four competent experts 

with many many years of experience 

in the the region region head the asset 

management group 

Additional services for rental 

and property management 

Close cooperation provides key 

know-how advantages


Accounting reflects EPRA 

recommendation for use of fair 

value model 

Property valuation by two 

independent companies 

Additional internal valuation of 

the portfolio each quarter 

Inherent value of of share 

determined determined by by discounted 

discounted 

cash flow method 

Property valuation by independent experts 

The preparation of the IMMOEAST financial statements also includes the application of the fair 

value model recommended by the European Public Real Estate Association (EPRA), which means 

the property portfolio is shown at fair value (present value) on the balance sheet. The calculation of 

fair value requires the regular revaluation of all properties owned by the company, and the results 

of this revaluation have a significant influence on the company’s earnings. The property portfolio is 

valued in accordance with the EPRA’s Best Practices Policy Recommendations using the fair value 

model defined in IAS 40. 

The property portfolio is valued by well-known external experts at the end of each financial year, 

which guarantees the correct and independent valuation of all properties. In order to optimise the 

quality and exactness of results, the valuations are performed by two companies. 

Up to and including the 2005/06 financial year, most of the properties owned by IMMOEAST were 

valued by a committee of three court-certified experts from Austria and a smaller number of objects 

were valued by international property companies. Beginning in 2006/07 this process was transferred 

completely to major property companies to ensure that the valuation meets standard international 

criteria. This changeover will facilitate the comparison of IMMOEAST with other listed property 

companies and also reflect the wishes of numerous institutional investors. 

Colliers International and DTZ, two of the best known global players in the property branch, were 

commissioned as valuation experts for the 2006/07 financial year. These firms are recognised specialists 

for property markets in Central, Eastern and South-eastern Europe. 

In addition to a valuation at year-end, the IMMOEAST portfolio is also valued by external experts 

at mid-year. The valuations for the first and third quarters are performed internally by IMMOEAST. 

The same principles used by the external experts are applied in these valuations, whereby the fair 

values determined by the last external valuation form the starting point for the internal valuation 

of the property portfolio. 

Use of the discounted cash flow method 

The properties are generally valued using the discounted cash flow method, which follows international 

valuation principles. Under this method, fair value is determined on the basis of the expected 

future cash flows generated by a property. Cash flows that will be received in the near future carry 

a greater weighting, while later cash flows are discounted at an appropriate rate. Additional opportunities 

for earnings are reflected in a premium to the discount rate, risks are accounted for through 

discounts. The discounts used in the valuation are established by the experts and correspond to the 

various property submarkets. The fair value of the portfolio plus other assets less debt equals net 

assets (net asset value or NAV). When this figure is divided by the number of shares outstanding, 

the results is net asset value or “inherent value” per share.

Outlook and strategic goals 

Property valuation, Strategic goals 

In spite of the high growth rates recorded in recent years, the property markets in Central, Eastern 

and South-eastern Europe have only exhausted a fraction of their long-term potential. A comparison 

with the established markets of the west gives an impressive picture of the potential that is offered 

by this region over the mid- to long-term. 

Although the size of the populations in Budapest and Vienna is comparable, Budapest has only 

around one-fourth the office space currently available in Vienna. In Berlin there is more office space 

than in the whole of Poland, and the Paris or London office market is larger than the entire office 

market in Central and Eastern Europe. The difference is even more apparent when the development 

of the property markets in South-eastern Europe is analysed: while Romania has a population of 

more than 20 million, the office market covers approx. 850,000 sqm. A similar developmental pattern 

can also be identified in other parts of the market such as the logistics or residential sectors. 

The rapid economic recovery that has taken hold throughout the region, in the EU countries as well 

as Ukraine, Russia and the successor states of the former Yugoslavia, will push economic performance 

up to western levels over the coming 15 to 20 years. The property market is also forecasted to 

show a corresponding improvement. 

The excellent growth perspectives for the entire market form the backdrop for the long-term strategic 

goals of IMMOEAST. The company has established a firm position as the largest property 

investor in the region and, as the market leader, can profit best from its growth. For this reason, 

IMMOEAST has placed the primary focus of activities on strengthening its leading position on the 

markets in which it is present. Expansion into new markets in Eastern and South-eastern Europe as 

well as other successor states of the former Soviet Union is generally planned, but IMMOEAST sees 

substantially greater opportunities for growth in its current markets. 

Diversification and higher share of development projects 

Current plans call for IMMOEAST to maintain the present structure of the property portfolio over the 

long-term. The broad sector diversification with a strong focus on retail, office, logistics and residential 

properties will remain a key element of the IMMOEAST strategy. That will allow the company 

to utilise the growth opportunities provided by all segments of the market and safeguard the stability 

of earnings and the further increase in the value of the portfolio over the long-term. 

The increase in investments for development projects – which exceeds the acquisition of investment 

properties for the first time in 2006/07 – will also continue over the long-term. As a result of 

the declining yields on completed objects, projects in the development area offer good opportunities 

for significantly higher initial returns and a sound potential for an increase in value. 

The long-term goal of IMMOEAST is to maintain its number one position in Central, Eastern and 

South-eastern Europe as well as Ukraine and Russia. Today IMMOEAST is the top player in a region 

where the volume of the property markets plays only a supporting role on the European stage. In 

15 to 20 years these markets should become the leading actors in a region that will represent more 

than one-third of the European property market based on its share of the European population. 










Property markets in in 

Central, Eastern and Southeastern 

Europe still have 

great great potential 

Primary focus placed on 

growth in current markets 

Increased Increased share share of developmentment 

projects creates new new 

opportunities opportunities for earnings

Regional 


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Regional 

Regional distribution of the portfolio *) 










Number of Proportional share of Share of total 

objects letable space sqm letable space 

Romania 101 1,632,051 33.4% 

Poland 60 799,251 16.3% 

Hungary 55 721,246 14.7% 

Czech Republic 87 691,551 14.1% 

Slovakia 24 310,238 6.3% 

Russia 16 220,412 4.5% 

Bulgaria 20 179,879 3.7% 

Ukraine 4 107,037 2.2% 

Croatia 6 81,473 1.7% 

Slovenia 3 64,662 1.3% 

Serbia 5 52,978 1.1% 

Other countries **) 4 30,538 0.7% 

Total 385 4,891,316 100.0% 

*) excl. WIPARK Hungaria 

**) Estonia, Lithuania


Focus of investments shifts to 

South-eastern Europe 

HR, Zagreb, Grand Center 

IMMOEAST IMMOEAST expands its 

regional presence and is is now 

represented in 13 countries 

Regional distribution of 

letable space as a % 

of the portfolio 


Business activities by region 

Concentration on more profitable markets inside and outside the EU 

IMMOEAST completed direct investments in a record number of countries during 2006/07, and 

these transactions are leading to a gradual change in the focal points of the portfolio. The concentration 

of activities is shifting from Central and Eastern Europe (Poland, Slovakia, Czech Republic 

and Hungary) toward the south-eastern countries of this region (Romania, Bulgaria Slovenia, 

Croatia and Serbia). In addition, an increased share of the total portfolio and new investments will 

be directed to the two most important markets in the territory of the former Soviet Union, Ukraine 

and Russia. 

During the course of the reporting year IMMOEAST completed its first direct investments in five new 

countries, namely Russia (where a presence was established in earlier years through investments 

in two property companies that are specialised in this market) and Ukraine as well as Slovenia, 

Croatia and Serbia. 

— In June 2006 IMMOEAST entered the Russian market with the purchase of two shopping 

centres in Moscow, and in November 2006 another shopping centre (5th Avenue) was acquired 

in this capital city. A framework agreement concluded by the IMMOEAST holding TriGránit 

with the investment arm of the Gazprom Group for the construction of multi-functional urban 

development projects in more than 30 cities will prepare the development of a broad-based 

presence in the region’s largest and most populated market. 

— In June 2006 a joint venture was formed with the Ukrainian property developer Alacor for the 

construction of an office complex and logistics park in Kiev. 

— In September 2006 two fully occupied specialty shopping centres were acquired in Slovenia. 

— In October 2006 a housing project with 120 apartments in the capital city of Belgrade marked 

the start of investments in Serbia. 

— In December 2006 IMMOEAST acquired the Grand Center office building in Croatian capital of 

Zagreb. 

IMMOEAST is now represented in 13 countries – and a large number of the “blank spots” that were 

found on the company’s map before the 2006/07 financial year have since disappeared. The only 

countries in which there have been no business activities to date are markets such as Belarus, 

Albania, Bosnia and Macedonia, which are still problematic for long-term investors largely because 

of the political and economic situation. Preparations for market entry have also started in two other 

South-east European countries, the Republic of Moldavia and Montenegro. In both cases, the objective 

is to identify potential projects through investments in other companies or joint ventures. 

Other countries *) 4.8% 

Ukraine 2.2% 

Bulgaria 3.7% 

Russia 4.5% 

Slovakia 6.3% 


Hungary 14.7% 

33.4% Romania 

16.3% Poland 

*) Croatia, Serbia, Slovenia, 

Estonia, Lithuania

The geographic structure of the portfolio was not only changed by the start of business in these new 

“IMMOEAST countries”. There has also been a noticeable shift in the weighting of the countries in 

which IMMOEAST was previously active. The most noticeable difference is the strong increase in 

investments in the countries of South-eastern Europe, especially Romania. This country is experiencing 

a rapid economic recovery, and advanced to become the most important investment location 

for IMMOEAST in 2006/07. With a 33.4% share of the property portfolio, Romania has now overtaken 

the traditional investment targets of Hungary, the Czech Republic and Poland. 

The higher weighting of South-eastern Europe, Russia and Ukraine in the IMMOEAST investment programme 

will be further intensified during the 2007/08 financial year. The reason for this redirection is 

the current high level of returns that can be realised on investments in these countries as well as the 

growth rates that exceed the more mature markets in the countries that joined the EU in 2004. 

Central and Eastern Europe: 

returns approach western levels 

Regional 

The property markets in the countries of Central and Eastern Europe (Poland, Slovakia, Czech 

Republic and Hungary) have made substantial progress in their transformation from growth markets 

of the post-Communist era to established markets of the 21st Century. During the slightly more 

than three years since their accession to the European Union, the gap between these countries and 

the property markets in the “western” EU countries has steadily declined. In the areas of market 

transparency and legal security, there are now virtually no major differences. 

These changes have also influenced the development of returns, and the returns on property investments 

in the capital cities of the four above-mentioned countries are now only slightly higher than 

in the west. The top returns on fully let prime office properties has nearly reached the level of top 

returns in Vienna an Berlin. 

PL, Warsaw, Mistral Office 










RO, Constanta, Harbourside 

Declining top rents require 

change in strategic approach


PL, Warsaw, 

Wisniowy Business Park 

South-eastern Europe is 

the most important 

target region for new 

IMMOEAST investments 

Attractive rents, low 

vacancy rates and 

increasing legal security 

BG, Sofia, Enterprise Building 

This development was highly favourable for IMMOEAST. The decline in returns on all geographic and 

sector submarkets in Central and Eastern Europe led to a significant increase in the fair value of the 

property portfolio. However, rising property prices now make it more difficult to identify attractive 

investments. 

IMMOEAST expanded its portfolio in Central and Eastern Europe by a significant amount during 

2006/07. The number of properties increased from 89 to 230 and letable space rose from 1,190,251 

sqm to 2,552,824 sqm. In spite of this development, the representation of Central and Eastern 

Europe in the Group’s portfolio fell by 31.9 percentage points from 84.1% to 52.2% because of the 

strong increase in investments in other areas. The share of new investments made in this region 

during 2006/07 equalled 26%. Additional details on IMMOEAST investment activities in the countries 

of Central and Eastern Europe are provided in the segment reports beginning on page 86. 

South-eastern Europe: sound returns, strong growth 

Romania is the new economic driver for the Balkans 

South-eastern Europe (Romania, Bulgaria, Serbia, Croatia and Slovenia) became the most important 

target area for new investments during the 2006/07 financial year, with 60% of the company’s 

total investment volume allocated to this region. In this development, Romania plays a key role: with 

a population of roughly 30 million, it is not only the largest submarket but by far the most attractive 

country for international investors in all sectors. This strong momentum has also started to spread 

out into the neighbouring countries. Even countries like the Republic of Moldavia, which are less 

important from an economic standpoint, have profited from the Romania boom and become interesting 

markets for property investors over the mid- to long-term. 

In general, South-eastern Europe was an extremely attractive location for investments during the 

2006/07 financial year. Excellent rents can be realised in all segments of the market and vacancy 

rates are low – while the demand for modern space is extremely high and many submarkets are 

characterised by an undersupply of space. Since the accession of Romania and Bulgaria to the EU 

in early 2007, the key national markets now have a standard of legal security that reflects the other 

member countries of the European Union. 

IMMOEAST expanded its portfolio in Central and Eastern Europe by a greater margin than in any 

other submarket during the 2006/07 financial year. The number of objects rose from 19 to 135 and 

letable space increased from 213,721 sqm to 2,011,043 sqm. The share of this region in the portfolio 

grew 26 percentage points from 15.1% to 41.1%. Details on IMMOEAST investment activities in 

the countries of South-eastern Europe are provided in the segment reports beginning on page 93.

Ukraine & Russia: first direct investments 

IMMOEAST closed its first direct investments in the two major successor states of the former Soviet 

Union during 2006/07. The dynamic pace of economic development in Russia and Ukraine as well 

as the comparatively high returns on property markets in these two countries make them attractive 

targets for investments. 

Although IMMOEAST has purchased three shopping centres in Moscow and is managing a major 

development project, the primary driver for growth in Russia is formed by investments in other companies 

and joint ventures. In addition to current properties and development projects, two broadbased 

framework agreements between TriGránit (IMMOEAST stake: 25%) and the Gazprom Group 

and the city of St. Petersburg will create unusually large and attractive opportunities for growth in 

Russia over the mid- to long-term. 

IMMOEAST expanded its portfolio in Russia and Ukraine by a significant amount in 2006/07. The 

number of objects grew from 8 to 20 and letable space rose from 10,990 sqm to 327,449 sqm. 

The share of these two countries in the portfolio increased 5.9 percentage points from 0.8% to 

6.7%. Details on IMMOEAST investment activities in Russia and Ukraine are provided in the segment 

reports beginning on page 97. 

RUS, Moscow, shopping centre 5th Avenue 

Regional 










Investors profit from sound 

economic economic development and 

high returns 

Good opportunities for growth 

through projects by IMMOEAST 

holdings TriGránit TriGránit and Adama

Sector Portfolio 

Structure 

Sector diversification provides 

protection against cyclical 

fluctuations on submarkets 

Significant improvement 

improvement 

in earnings stability through through 

sector diversification 

Sector distribution 

of letable space 


Broad diversification across all major property sectors 

The IMMOEAST portfolio is also widely diversified among the various sectors of the property market. 

The four strong focal points of the company – offices, retail, logistics and residential properties 

– form an important advantage over competitors who are only present in specific submarkets. The 

cyclical fluctuations that frequently characterise property markets generally conflict with the goal 

of long-term property investors to realise stable earnings and an increase in value. Although these 

cycles are still outweighed by the strong growth in Central, Eastern and South-eastern Europe, they 

will play a larger role as the markets mature. 

Different cycles in different sectors 

The cyclical movements on the various submarkets do not normally coincide because demand is 

driven by different macroeconomic developments. Whereas the demand for office space is based 

primarily on economic growth and the pace of investment activity by companies, the retail sector is 

influenced above all by changes in disposable income. The demand for housing, in turn, only starts 

to improve when other basic consumer needs are satisfied. 

The independent factors that affect the various submarkets demonstrate that the stability of the 

earnings generated by a property portfolio can be significantly improved through the broad diversification 

of investments by sector. IMMOEAST is an excellent example of this diversification policy: 

the most important areas of business are the retail and office sectors, which are complemented by 

a strong focus on investments in logistics and the still small, but rapidly growing residential sector. 

Fluctuations on individual submarkets can lead to a sharp decline in earnings for property companies 

that concentrate on only a single sector, but the resulting impact on the IMMOEAST portfolio is 

largely equalised by a balanced mixture of investments. 

100 

80 

60 

40 

20 

0 

2003/04 2004/05 

2005/06 2006/07 

Parking 

Recreation/Hotel 

Retail 

Logistics 

Residential 

Offices

In addition to the increased stability of earnings, a further advantage of the diversification strategy 

pursued by IMMOEAST is that it provides the necessary know-how for multi-functional projects. The 

importance of these assignments is increasing, especially in connection with major urban development 

projects – and is illustrated by the IMMOEAST holding TriGránit, which will realise 30 urban 

development projects in Russia, over the coming years. 

Despite the evident advantages of a portfolio that is widely diversified by sector, this investment 

strategy is only followed by a small number of property companies. One main reason for this situation 

is the significantly higher cost of management compared with property portfolios that concentrate 

on only one or a few market segments. However, this is not a problem for IMMOEAST. The 

management contract with Constantia Privatbank provides the company with adequate personnel 

resources and a large number of experts – at no additional cost in relation to the management of a 

portfolio that is less diversified or not diversified at all. 

The benefits of know-how transfer 

Sector 










Extensive know-how for 

multi-functional projects 

Management contract 

guarantees necessary 

personnel capacity 

For a large number of projects, secondary uses also play an important role in addition to the primary 

use of the property – for example, shopping centres that also let office space, or an office 

building that has large warehouse facilities. IMMOEAST and the entire IMMOFINANZ Group have 

compiled extensive know-how in all areas due to the broad sector diversification of the portfolio, 

which makes it possible to optimise the many different components of a project. 

The importance of this know-how transfer between sectors is illustrated by the parking segment: 

although IMMOEAST does not operate any commercial garages, roughly 6.6% of the letable space in 

the company’s portfolio is comprised of underground garages and other parking areas in buildings 

(not including outdoor parking spaces). Above all in office buildings and shopping centres, a major 

part of the available space is dedicated to this use. Therefore, the optimal management of parking 

facilities as well as the cost-effective operation of garages often has a major influence on the total 

return of a property. 

In this area, IMMOEAST can rely on the extensive know-how of its parent company IMMOFINANZ: 

the IMMOFINANZ subsidiary WIPARK is one of the leading garage operators in Austria and has 

also gained experience in the east with its three garages in Budapest. The exchange of know-how 

throughout the Group provides IMMOEAST with technical expertise as well as extensive experience 

in pricing, product design and the marketing of parking spaces, which allows for the optimisation 

of projects that include garages.


Decline Decline in returns leads 

to higher fair values for 

IMMOEAST office objects objects 

Reduction of 6.4 percentage 

points in office space to 34.0% 

Office sector remains dominant 

The office sector continued its strong positive development during the 2006/07 financial year. In all 

countries in which IMMOEAST is present, the returns on office properties declined steadily. That had 

a favourable effect on the fair value of the property portfolio, but also reduced the realisable returns 

on new investments. This change in the operating environment also led to a change in the pattern 

of investments by IMMOEAST. 

Returns in Central Europe continue to approach western levels 

In the capital cities of Central and Eastern Europe (Prague, Warsaw, Budapest and Bratislava), the 

top returns for fully occupied office properties in prime locations declined steadily to a level of 

5.0% to 5.75% by the end of the financial year. This development significantly reduced the difference 

to returns in major western cities, and forecasts are now indicating that returns will equalise 

during 2007/08. 

The office sector remained the largest area of business for IMMOEAST in 2006/07. As of 30 April 

2007 this segment represented 34.0% of the portfolio (based on total letable space), which reflects 

a decline of 6.4 percentage points in comparison with the previous year. In spite of this shift, the 

share of office space still exceeds the steadily growing retail segment. 

As a percentage of new investments, the share of office projects fell behind the retail segment to 

equal only 29% in 2006/07. A total of EUR 1.4 billion was invested in office properties during the 

reporting year, but the share of new investments in the retail sector fell to 39%. 

Most of the investments made in office properties during the reporting year represented completed 

objects, primarily with high occupancy rates between 80% and 100%. The new acquisitions include 

the Mokotow Business Park in Warsaw with 136,000 sqm of letable space that is almost fully occupied 

and three objects in the BB Centrum in Prague with a combined total of 73,000 sqm of fully 

CZ, Prague, BB Centrum

Sector 

let space. Other purchases of large office properties that are fully or almost fully let include the 

Diamond Point in Prague with 27,000 sqm, the Brama Zachodnia in Warsaw with 36,000 sqm, the 

Victoria Park in Bucharest with 30,000 sqm and the Grand Center in Zagreb with 21,400 sqm. 

This concentration on fully let objects is also a reaction to the vacancy rates in the capitals of Central 

and Eastern Europe. In these cities, vacancies are significantly higher for offices than in the 

retail, logistics or residential sector. Despite this situation, IMMOEAST started work on a number 

of impressive development projects during 2006/07. The most notable project is undoubtedly the 

Equator Office in Warsaw, which involves the construction of 125,000 sqm of letable space. Another 

major project, the Jandarmeriei Office, was started in Bucharest and will entail the construction of 

40,000 sqm of letable space by 2010. 

Expansion of STOP.SHOP. specialty shopping centres 

throughout the region 










Major office development 

projects in Warsaw and 

Bucharest 

Specialty shopping centres play an important role in IMMOEAST activities in the retail sector. These 

facilities represent mid-sized retail properties with a minimum area of 3,500 to 10,000 sqm, which 

are typically located at or near traffic crossroads in mid-sized cities. IMMOEAST has direct access to 

extensive know-how in the development of specialty shopping centres because its parent company 

IMMOFINANZ operates over 150 such facilities in Austria and has been the market leader in this segment 

for many years. 

The development of specialty shopping centres is based on a high degree of standardisation, which 

covers both the design of the objects as well as the tenant mix. This procedure creates significant cost 

and rental advantages for a major property investor who, like IMMOEAST, can develop a large number 

of locations at the same time. In contrast to shopping malls, there are no joint advertising or marketing 

activities and facilities management is also less extensive. These lower costs allow the centre owner to 

offer substantially lower rents. For this reason, specialty shopping centres are attractive above all for 

retail chains in the middle and lower price segments. IMMOEAST develops specialty shopping centres 

in many locations together with the same chains, providing these corporations with a tailor-made retail 

property and giving them the opportunity to build up a key part of their own network with a single 

property partner. 

Specialty shopping centres are generally “anonymous” in design, but IMMOEAST operates its facilities 

under a separate name with high brand recognition. Under the STOP.SHOP. brand name, a total of 45 

specialty shopping centres are currently under development throughout the entire region, and 11 of 

these facilities have already opened in Hungary, Slovakia and Slovenia. After the completion of extensive 

preparatory work, a STOP.SHOP. centre will open every two to three weeks on average during the 

2007/08 financial year. The Czech Republic will form the focal point of investments, where 18 specialty 

shopping centres will start operations by spring 2009. Eight objects will be built in Slovakia, and nine 

centres will be added to the current seven in Hungary. Additional properties are currently under construction 

in Poland and Romania. 

Above and beyond this expansion programme, work has started on a further development phase that 

will involve the construction of roughly 85 STOP.SHOP. specialty shopping centres in Poland, Ukraine, 

Romania, the Czech Republic, Slovakia and Hungary. IMMOEAST plans to develop a total of 120 STOP. 

SHOP. specialty shopping centres in this region over the coming years.


Increase of 8.1 percentage 

points in retail space to 30.0% 

Good opportunities for 

growth and earnings earnings through 

expansion by international 

retail chains 

Separate asset management 

group for shopping malls and 

specialty shopping centres centres 

Strong increase in retail space 

The retail sector generated the highest growth rates in the IMMOEAST portfolio during the 2006/07 

financial year. The share of this sector in the total portfolio rose from 20.9% at the end of 2005/06 

to 30.0% as of 30 April 2007. This development largely reduced the difference to the largest segment, 

the office sector. Retail properties totalled 39.0% of all new investments for the reporting 

year, replacing office objects as the most important area of business. Investments in retail properties 

reached a volume of EUR 1.9 billion in 2006/07. 

CZ, Tabor, STOP.SHOP. 

IMMOEAST is utilising this favourable market situation to adjust the focus of its investments, and 

thereby take advantage of the interesting opportunities in the retail sector. Nearly all countries 

in Central, Eastern and South-eastern Europe have recorded a steady improvement in disposable 

income over recent years. This development has made these markets more attractive for international 

retail chains, which have started to accelerate the pace of their expansion in the region. Retail 

space is now in high demand, above all at new locations outside the capital cities. A further plus 

point is the fact that returns on retail space are still substantially higher than offices. The difference 

in returns between top rents in the office segment and top rents in the retail segment equals 0.5 to 

1.0 percentage points. 

The growing importance of the retail segment in the IMMOEAST portfolio and the special challenges 

posed by the management of these properties were reflected in the creation of a separate group 

within the asset management department. Under the direction of Walter Wölfler, an experienced 

specialist for shopping centres, this group is responsible for facility management in the IMMOEAST 

shopping malls and specialty shopping centres.

Higher share of development projects 

IMMOEAST investments in retail objects focus primarily on development projects, with the acquisition 

of completed properties playing a much less important role. The two largest retail investments 

completed during the 2006/07 financial year represent the acquisition of development projects: 

the largest investments in Romania, the Polus Center Cluj with roughly 100,000 sqm of letable 

space and the Polus Center Constanta with 90,000 sqm of letable space, were acquired during an 

early stage of construction in the form of forward purchases, contingent on completion and realisation 

of a pre-determined level of occupancy. Other major acquisitions, such as a shopping centre 

in Craiova, are also development projects. Completed objects were acquired above all in Russia, 

where three shopping centres were purchased in Moscow. 

An important reason for the high component of development projects is the favourable rental situation, 

since vacancy rates are substantially lower than in the office sector. That lowers the risk 

associated with vacancies, and most retail objects start with a very high level of occupancy or are 

fully let when they open. Therefore, the commitment in development projects is relatively low in 

this sector. 

The cooperation with TriGránit, a property developer in which IMMOEAST acquired a holding during 

July 2006, has become an important factor for new investments in the retail sector. TriGránit is 

developing large shopping centres through Central, Eastern and South-eastern Europe. IMMOEAST 

generally has a right of first opportunity to purchase the completed objects, which gives the company 

privileged access to investments in some of the most attractive retail properties in the region. 

H, Budapest, Millenium Tower I 

Sector 










RO, Cluj, Polus Center Cluj 

Development projects in the 

retail sector form a major major part 

of the IMMOEAST portfolio


Logistics sector declines 

by 4.2 percentage points 

to 14.2% 

Low vacancy rates and 

relatively high returns 

Steady expansion of logistics portfolio 

The logistics sector forms an important element of the overall concept for the IMMOEAST property 

portfolio. In addition to the two larger segments – offices and retail objects – it rounds out the 

company’s activities in the area of commercial properties. During the 2006/07 financial year, the 

number of logistics objects rose from 14 to 52 and letable space increased from 260,241 sqm to 

695,948 sqm. In spite of this impressive development, the growth of this sector was significantly 

slower than the overall expansion of the IMMOEAST portfolio. Accordingly, the share of logistics 

properties declined noticeably from 18.4% at the end of 2005/06 to 14.2% as of 30 April 2007. 

RO, Timis¸oara, Almera Logistics 

The logistics area is highly attractive for long-term investors, above all because of its low vacancy 

rates. In all countries where IMMOEAST has made such investments, the demand for modern logistics 

space remains high and most of the objects have occupancy rates clearly above 80% at the 

time they open. 

Higher returns than offices and retail objects 

The returns are also very attractive and exceed the comparable values that can be realised on 

investments in office or retail properties. In Central and Eastern Europe, South-eastern Europe, 

Russia and Ukraine, the difference between top returns in the logistics area and top returns in the 

office sector generally range from 1 to 2 percentage points.

The largest single investment in the logistics segment during 2006/07 was the acquisition of IMAK 

CEE, in which IMMOEAST held a majority stake of 56% before the reporting year. The IMAK CEE portfolio 

has a fair value of roughly EUR 280 million, and 60% of the letable space is located in logistics 

facilities. The investments are concentrated in Poland and Hungary, whereby the Euro Business 

Park near Budapest represents the most important logistics object with its Shark Park, Camel Park 

and Pharma Park properties. 

The Bucharest Distribution Park in the Romanian capital has also reached an important dimension. 

As part of a framework agreement, 149,000 sqm of logistics space will be built in eight objects. This 

is the largest investment made by IMMOEAST to date in the logistics sector. In Romania IMMOEAST 

has signed an agreement covering an extensive development programme for logistics centres – 

400,000 to 500,000 sqm of logistics space will be built together with the European Future Group, a 

property developer, including the Pantelimon Warehouse near Bucharest with 52,000 sqm. 

The most important investment activities in numerous regions of Romania are taking place within 

the context of a traditional supplier market. In the greater Bucharest area modem logistics facilities 

reported virtually no vacancies at the end of the 2006/07 financial year, and the supply of modern 

logistics space in the districts surrounding the capital city totalled only approx. 200,000 sqm at the 

start of 2007. This supply will be unable to meet the level of demand, which is expected to arise over 

the coming years. According to a market report by the international property company DTZ, vacancy 

rates are less than 2% across the whole of Romania. 

Another notable project is the Alacor Logistics Park City in Ukraine, which has 47,200 sqm of 

letable space. This project is being realised together with the Ukrainian developer Alacor. In addition, 

IMMOEAST has also made indirect investments in the logistics sectors of other countries 

through acquisitions made by its holdings, for example in Poland and Russia. 

UA, Kiev, Alacor Logistics Park City 

Sector 










Full acquisition of 

IMAK CEE CEE with a portfolio 

of EUR 280 million and 

high share of logistics 

RO, Bucharest, Pantelimon 

Traditional “supply market” 

in Romania with vacancy rates 

below 2% 

Alacor Logistics Park City: 

top project in Ukraine


First direct investments 

investments 

in residential sector 

during during 2006/07 

Sale of completed apartment 

complexes in the 

form of condominiums 

Residential: new area of business with great potential 

The residential sector is the newest area of business for IMMOEAST. Prior to the 2005/06 financial 

year, the only investments in this sector represented indirect investments through stakes held by 

IMMOEAST in other property companies. However, residential properties now comprise 6.8% of the 

letable space in the IMMOEAST portfolio. 

The first direct investments were made during 2006/07, and IMMOEAST is currently realising 10 of 

its own residential construction projects in five countries. All projects are being developed together 

with local partners, and will result in the production of more than 3,400 apartments with 220,000 

sqm of letable space. Despite the start of direct investments in this sector, the share of residential 

space declined from 6.8% to 13.8% due to the strong growth of the IMMOEAST property portfolio 

during the reporting year. 

CSG, Belgrade, Francuska 

The development of this segment within the portfolio does not reflect the growing importance of 

activities in the residential sector for IMMOEAST. This is due to a special feature of the residential 

market in this region: although the market for rental apartments is largely non-existent, the market 

for condominiums is excellent and shows high rates of growth. For this reason, the residential 

projects developed by IMMOEAST are not held over the long-term, but sold quickly as possible – 

often before completion – as condominiums. One example is the Silesia Residential project, where 

all of the roughly 250 apartments built in phase one were sold at the start of construction.

Sector 

Short-term investment of capital with high returns 

Figures that appear “negative” in the letable space statistics on the IMMOEAST property portfolio 

are reflected in even more positive results in the analysis of performance. The capital invested in 

these projects is tied up for a relatively short period of time, and the resulting returns lie far above 

the comparable indicators for other areas of business in which IMMOEAST holds investments over 

the long-term. 

For this reason, IMMOEAST has defined the residential sector as a key growth area and will steadily 

increase its commitment in these projects. The residential markets in the countries of Central and 

Eastern Europe, South-eastern Europe, Ukraine and Russia have a higher potential for growth than 

the markets for commercial properties over the mid- to long-term. The remaining supply of apartments 

from the Communist era is large, but in poor condition in many cities with low prospects for 

renovation or modernisation. 

The growing middle class is no longer prepared to accept this standard of housing and is increasingly 

in a position to finance the purchase of modern apartments. In combination with the demographic 

shift from rural to urban areas that currently characterises the entire region, there is an 

enormous undersupply of adequate housing above all in the capital cities and regional centres. This 

development will create optimal conditions for investors, at least over the next one decades. 

The most important projects started by IMMOEAST in 2006/07 include: 

— Silesia Residential (Poland): in Katowice 980 apartments are under construction in four stages 

next to the Silesia City Center, a shopping mall that is owned by IMMOEAST. 

— Jandarmeriei Residential (Poland): the Jandarmeriei project involves the construction of office 

space as well as 360 apartments. 

— Century Residence (Slovakia): 400 apartments will be built at a central location in the capital 

city of Bratislava. 

— Francuska (Serbia): close to the city centre of Belgrade, 120 apartments and 148 underground 

garage spaces are under construction. 

St. Vlas & Koral Bay: strong demand for apartments 

on the Black Sea 










Short-term investment of of 

capital leads to higher returns 

compared with other sectors 

SK, Bratislava, 

Century Residence 

Rising standard of living 

and extremely low supply 

create optimal market market and 

growth opportunities 

Silesia Residential 

Jandarmeriei Residential 

Century Century Residences 

Residences 

Francuska 

A relatively small, but lucrative niche in the residential segment is the construction of holiday apartments 

and second homes in popular tourism areas. IMMOEAST is currently constructing two complexes 

with roughly 470 apartments on the Bulgarian Black Sea coast. 

The Koral Bay and St. Vlas apartment complexes are located directly on the beach, and therefore 

particularly attractive as second residences. The demand for these objects comes primarily from 

countries in the west, above all Great Britain. A large number of the apartments in both objects have 

already been sold, even though the properties are not yet completed.

Investor Relations 

NEW IMPULSES 

THROUGH NEW MARKETS 

�� 

�� 

�� 

�� 

�� 

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Capital Market & Development of Share 

Developments on international capital markets 

During the period from May 2006 to the end of April 2007, events on international markets were 

influenced by the volatile development of prices for raw materials and crude oil and the subsequent 

impact on economic growth, inflation and interest rates. Following massive declines in early 

summer, all major international stock indexes recorded positive performance for the fourth year in 

succession. However, this development was moderated by a strong but brief correction in February 

2007 – the upward trend then continued during the first quarter of 2007, although macroeconomic 

factors and geopolitical risks clouded the general market climate. In year-on-year comparison, the 

DJ Euro Stoxx 50 recorded an increase of 14.4% as of April 2007 and the leading German DAX 

reported a plus of 23.3%. The Austrian Traded Index (ATX) of the Vienna Stock Exchange closed with 

4,738 points at the end of April, which represents an increase of 13.5% over the previous year. 

Market environment for property shares 

The development of property shares outpaced the market during the 2006/07 financial year. Positive 

impulses were provided above all by dynamic growth in Eastern Europe and the resulting increase 

in the demand for space. The I-ATX property index of the Vienna Stock Exchange registered a plus 

of nearly 26% from May 2006 to the end of April 2007. However, in part significant corrections were 

noted during early summer 2007. 

Performance of the IMMOEAST share 

IMMOEAST has also recorded an impressive success story on the stock exchange since its initial public 

offering in December 2003. With average annual performance of almost 20% from the start of trading 

on 12 December 2003 to 30 April 2007, the stock has generated excellent results for shareholders. 

The IMMOEAST share was able to match its past performance without difficulty during 2006/07. An 

increase of 20.8% for the financial year again demonstrated the stability of the upward trend in the 

share price. Three-year performance of 20.0% placed the share above the 20%-mark for the first 

time. Since the initial public offering IMMOEAST shareholders have also enjoyed an average annual 

performance that has nearly matched this level, with a plus of 19.3%. 

210 

200 

190 

180 

170 

160 

150 

140 

130 

120 

110 

100 

Dec 03 Mar 04 Jun 04 Sep 04 Dec 04 Mar 05 Jun 05 Sep 05 Dec 05 Mar 06 Jun 06 Sep 06 Dec 06 Mar 07 Jun 07 


IMMOEAST 

Immobilien ATX 

MSCI World 










Continuation of 

upward trend 

Property index outperforms 

market with a plus of 26% 

Share price reaches 

historic high of EUR 12.0 

Development of IMMOEAST 

share price vs. I-ATX and MSCI 

World 

from 12.12.2003 to 29.6.2007 

in %


IMMOEAST share with 

improved liquidity 

Market capitalisation of 

property companies traded on 

the Vienna Stock Exchange 

As of 30.6.2007, in EUR mill. 

Capital increase carried 

out at mid-year 

Largest issue by a European 

property company 

Annual Performance of the IMMOEAST share as of 30 April 2007 

Pre-tax return 

Period After-tax return (inv. subject to withholding tax) 

1 year 20.9% 27.7% 

3 years 20.0% 26.7% 

Since IPO on 11 December 2003 19.3% 25.5% 

The liquidity of the IMMOEAST share continued to improve during 2006/07, with the trading volume 

reaching EUR 5,832 million for the financial year. In comparison with 2005/06, the increase represents 

115%. This development ranked IMMOEAST among the ten stocks with the highest turnover 

on the Vienna Stock Exchange. As a result of the capital increase and strong rise in the price of the 

share, market capitalisation rose by a substantial margin to EUR 5.78 billion as of 30 April 2007 and 

a year-on-year increase of 200%. 

10,000 

8,000 

6,000 

4,000 

2,000 

0 

IMMOEAST Meinl European 

Land 

IMMOFINANZ CA Immobilien Conwert Sparkassen 

Immobilien 

CA Immo 

International 

ECO Business 

Immobilien 

Capital increases 

The previously announced capital increase by IMMOEAST was successfully carried out in June 2006. 

A total of 277.9 million shares were offered for sale and, although the stock market climate was 

clearly negative at that time – the leading Austrian ATX index lost 15.7% from the start of the financial 

year on 1 May 2006 to the conclusion of the capital increase on 8 June 2006 – this transaction 

was a full success. The issue was clearly oversubscribed and many purchase orders, especially from 

institutional investors, could only be filled in part. 

The price of the new shares was established through a bookbuilding procedure, which was used for 

the first time in Austria in connection with this IMMOEAST issue. The resulting price of EUR 8.25 per 

share produced a total volume of EUR 2.75 billion for the issue. That represents the largest capital 

market transaction ever carried out by a property company in Europe and the second largest issue 

ever completed by an Austrian corporation. 

This capital increase firmly established IMMOEAST as one of the major European property companies, 

and also substantially increased the company’s standing on international capital markets. As 

a consequence of this development, IMMOEAST was included in the GPR 15, the index of the 15 

most important listed property companies in Europe, at the start of July 2006. IMMOEAST and its 

parent company IMMOFINANZ are the only corporate group to be represented with two stocks in this 

key index for property blue chips in Europe.

Strengthening of investor relations 

IMMOEAST strongly expanded its activities in the area of investor relations during 2006/07. Numerous 

road shows were held in financial centres throughout Europe to present the company to key institutional 

investors, especially in advance of the capital increase carried out in June 2006 and the capital 

increase carried out after the end of the 2006/07 financial year in June 2007. 

In addition to these wide-ranging investor relations programmes, a large number of presentations were 

also organised. IMMOEAST took part in all major international property conferences and presented 

itself at road shows in London, Paris, Frankfurt, Munich, Stockholm, Amsterdam, Zurich, Geneva, New 

York, San Francisco, Boston, Sydney and Melbourne. The members of the Executive Board held more 

than 250 individual meetings and 30 group presentations in 2006/07. These activities played a key role 

in making IMMOEAST the most important property share for Central, Eastern and South-eastern Europe 

on global financial markets. 

The following investment houses have published analyses on the IMMOEAST share: 

— CA IB 

— Credit Suisse 

— Deutsche Bank 

— Erste Bank 

— Exane BNP Paribas 

— ING 

— Kempen & Co 

— Merrill Lynch 

— Morgan Stanley 

— RCB 

Regular information for private shareholders carries the same importance as communications with 

institutional investors. The vehicles used to provide this information include press reports and the 

“IMMOEAST Report” newsletter as well as participation in shareholder trade fairs such as the GEWINN 

in Vienna and the “Moneyworld” in Salzburg. 

Financial Calendar 

13 September 2007 8th Annual General Meeting 

14 September 2007 Report on the First Quarter as of 31 July 2007 

20 December 2007 Report on the First Six Months as of 31 October 2007 

20 March 2008 Report on the First three Quarters as of 31 January 2008 











Presentations and road shows 

in numerous financial centres 

throughout Europe


Information on the IMMOEAST share 

Contact for investor relations Margit Hermentin 

Shareholders’ telephone +43/1/532 87 60-0 

E-mail investor@immoeast.com 

Internet www.immoeast.com 

Stock market Vienna Stock Exchange: Standard Market, Prime Market segment, Ticker Symbol IEA 

Warsaw Stock Exchange (since May 2007): Main Market, Ticker Symbol IEA 

ISIN AT0000642806 

Reuters IMEA.VI 

Bloomberg IEA AV Equity 

Included in the following indexes WBI, ATX Prime, Immobilien-ATX, EPRA, GPR 15, GPR 20, CA IB Emerging Europe Real Estate Index, MSCI World, 

MSCI World Real Estate, MSCI Europe, DJ Euro Stoxx, DJ Stoxx 600, FTSE World Europe, FTSE World Mid Cap 

IPO 12.12.2003 

Key Data on the IMMOEAST share 

2006/07 Change in % 2005/06 2004/05 

Equity as of 30.4. in EUR mill. 4,907.3 195.3% 1,662.0 407.7 

Number of shares as of 30.4. in mill. 555.9 150.0% 222.4 59.3 

Annual high in EUR 12.0 29.0% 9.3 7.3 

Annual low in EUR 8.2 18.8% 6.9 6.1 

Price at year-end in EUR 10.4 20.9% 8.6 7.2 

Market capitalisation as of 30.4. in EUR mill. 5,751.2 200.8% 1,912.2 428.7 

Stock market turnover in EUR mill. 

Fair value as of 30.4. in EUR mill. 

5,831.7 114.6% 2,717.4 197.9 

(incl. contracted investments) 9,019.2 115.7% 4,181.0 648.8 *) 

Net asset value per share in EUR 10.2 21.4% 8.4 7.7 

Earnings per share in EUR 1.0 25.0% 0.8 1.0 

Price/earnings ratio as of 30.4. 

*) Fair value, excl. contracted investments 

10.2 -7.3% 11.0 7.5 

Market Capitalisation and Weighting in the ATX Prime Market 

Weighted by free float as of 29.6.2007 

Company Market capitalisation EUR mill. Weighting in % 

Erste Bank der Österreichischen Sparkassen AG 13,298.9 15.1% 

OMV AG 11,135.3 12.6% 

Raiffeisen International Bank Holding AG 8,402.0 9.5% 

VOESTALPINE AG 7,425.0 8.4% 

Telekom Austria AG 6,382.5 7.2% 

IMMOFINANZ AG 4,961.8 5.6% 

IMMOEAST AG 4,365.1 5.0% 

Wienerberger AG 4,057.0 4.6% 

Verbundgesellschaft AG KAT. A 2,860.3 3.2% 

Wiener Städtische Versicherung AG 2,772.0 3.1% 

Andritz AG 1,910.6 2.2% 

CA Immobilien Anlagen AG 1,903.1 2.2% 

BOEHLER-UDDEHOLM AG 1,887.0 2.1% 

Conwert Immobilien Invest AG 1,220.6 1.4% 

Flughafen Wien AG 1,151.6 1.3%

Corporate 

Governance 

Report 

Commitment to the Austrian Corporate Governance Code 

The Austrian Corporate Governance Code is a voluntary, self-regulating work that comprises elements 

of Austrian stock corporation law and recognised international standards of good corporate 

management. The goals of the code include the creation of more transparent corporate structure 

and effective control as well as the provision of information on the financial position and development 

of a company to all stakeholder groups. IMMOEAST is committed to compliance with the rules 

of the Austrian Corporate Governance Code in its current version from January 2006, and is dedicated 

to the principles of responsible management in order to realise a sustainable and long-term 

increase in the value of the company. Furthermore, special emphasis is placed on the development 

and continuous improvement of an efficient system of corporate control and risk management. 

The code comprises important legal requirements (“L rules”) as well as recognised international 

standards, whereby any failure to observe these standards (“C rules”) must be disclosed and 

explained. In addition, the code includes a number of recommendations (“R rules”) that exceed 

mandatory requirements and call for voluntary compliance. IMMOEAST complied with the Austrian 

Corporate Governance Code during the 2006/07 financial year. The company deviated from the following 

C rule during the past year, and explains this difference as follows: 

Rule 18 

Depending on the size of a company, an internal audit function must be installed as a separate staff 

department or these activities must be outsourced to a qualified institution. A risk analysis performed 

by IMMOEAST indicated that the creation of a traditional internal audit department would 

not support the reasonable optimisation of risk management because of the specific characteristics 

of the group. In accordance with the results of this analysis, internal control and audit functions are 

carried out as part of group controlling activities. The Executive Board provides regular reports to 

the Supervisory Board on the results of monitoring and controls. IMMOEAST will also comply with 

the regulations of the Austrian Corporate Governance Code during the 2007/08 financial year. Since 

an internal audit department was established as a separate staff department at the beginning of 

2007/08, IMMOEAST now also meets the requirements defined in rule 18 of the code. 

Executive Board and Supervisory Board 

Members of the Executive Board 

Karl Petrikovics, born 20 May 1954, appointed to 30 April 2010 

Chairman and Chief Executive Officer 

Norbert Gertner, born 15 February 1956, appointed to 30 April 2010 


Christian Thornton, born 28 January 1969, appointed to 30 April 2010 


Edgar Rosenmayr, born 14 November 1956, appointed to 30 April 2010 

Deputy Member of the Executive Board 











Support for Code in the 

version from January 2006


Full attendance at all all meetings, 

four of of five Supervisory Board 

members declare 

their independance 

No remuneration for the 

Executive Board due to 

management management contract 

Members of the Supervisory Board 

Helmut Schwager, born 14 November 1943 

Chairman of the Supervisory Board. First appointed on 3 September 2001, current term ends with 

the annual general meeting in 2010. Member of the Managing Board of Constantia Packaging AG. 

Positions on the supervisory boards of other listed companies: member of the Supervisory Board 

of IMMOFINANZ AG. 

Wolfgang Reithofer, born 30 December 1948 

Vice-Chairman. First appointed on 3 September 2001, current term ends with the annual general 

meeting in 2010. Chief Executive Officer of Wienerberger AG. No other positions on the supervisory 

boards of listed companies. 

Christian Böhm, born 20 September 1958 

Member. First appointed on 9 October 2003, current term ends with the annual general meeting in 

2010. Chairman of the Managing Board of APK-Pensionskasse AG. No other positions on the supervisory 

boards of listed companies. 

Herbert Kofler, born 14 May 1949 

Member. First appointed on 9 October 2003, current term ends with the annual general meeting 

in 2010. Professor and Head of the Department for Business Finance and Taxes at the University of 

Klagenfurt. No other positions on the supervisory boards of listed companies. 

Audit Committee and activities of the Supervisory Board 

The Supervisory Board created an Audit Committee to deal with issues concerning the accounting 

and audit of the company and the group. The members of this committee are Herbert Kofler (Chairman), 

Wolfgang Reithofer and Christian Böhm. Helmut Kofler has been designated as the financial 

expert in accordance with the provisions of the Austrian Corporate Governance Code. The rules of 

procedure for the Supervisory Board call for the creation of additional committees only when this 

body has more than six members. 

The Supervisory Board held four meetings during the 2006/07 financial year; all members of the 

Supervisory Board were present at every meeting. The financial position and corporate strategy as 

well as important events and investments were discussed at these meetings. In addition, the Chairmen 

of the Executive Board and Supervisory Board conferred regularly on major events and decisions 

between the meetings. The approval of the Supervisory Board was requested for all investment and 

sale decisions after written and verbal reports had been provided. The members of the Supervisory 

Board have defined criteria for independence in accordance with the guidelines established by the 

Austrian Corporate Governance Code. Every member of this body evaluated his position and, with 

the exception of Helmut Schwager, all members are considered to be independent. 

Remuneration 

Based on the management contract with Constantia Privatbank, the members of the IMMOEAST 

Executive Board do not receive any remuneration from the company. The remuneration for the Supervisory 

Board is determined by the annual general meeting, and equalled TEUR 97.5 in 2006/07 (for 

work performed by the Supervisory Board during 2005/06). Details are provided in the notes to 

the financial statements on page 233. The members of the Executive Board and Supervisory Board 

owned a total of 295,345 IMMOEAST shares as of 30 April 2007 (558,631 shares as of 31 July 2007). 

No options have been issued for IMMOEAST shares. Information on the purchase and sale of the 

company’s shares by members of the Executive Board and Supervisory Board is provided on the 

IMMOEAST website www.immoeast.com under “Directors´ Dealings”.

Transactions with related parties 

IMMOEAST is a subsidiary of IMMOFINANZ AG, which holds 50.46% of the shares and voting rights. 

Constantia Privatbank Aktiengesellschaft as well as its corporate bodies and subsidiaries are considered 

related parties in the sense of IAS 24. In addition to services provided on the basis of the 

management contract, a wide range of other services are performed by these companies at arm’s 

length. Detailed information on this subject is provided in the notes to the financial statements 

beginning on page 231. 

Compliance 

In accordance with the Issuer Compliance Regulations issued by the Austrian Financial Markets 

Supervisory Authority, IMMOEAST defined internal rules for the distribution of data, in order to 

prevent the misuse of insider information. IMMOEAST has extended these rules to also cover the 

Supervisory Board, and monitors compliance on a regular basis. 

External evaluation 

The implementation and correctness of the statement of compliance by IMMOEAST were examined 

by KPMG Wirtschaftsprüfungs- und Steuerberatungs GmbH based on the rules issued by the 

International Federation of Accountants (IFAC) for activities related to the review of annual financial 

statements (ISRE 2400). 

Summary of the evaluation of compliance with the 

Austrian Corporate Governance Code during the 2006/07 Business Year 

We have evaluated compliance with the Austrian Corporate Governance Code by the Executive Board and Supervisory 

Board of IMMOEAST AG, Vienna, as presented in the public statement made by the Executive Board. The Executive 

Board and Supervisory Board of the company are responsible for compliance with the individual regulations as 

well as public reporting. Our responsibility is to issue a report on compliance with the regulations of the code based 

on our evaluation. We conducted our evaluation in accordance with the rules issued by the International Federation 

of Accountants (IFAC) for activities related to the review of annual financial statements (ISRE 2400). These principles 

require that we plan and perform the evaluation to obtain reasonable assurance about whether the statement 

by the Executive Board on compliance with the Corporate Governance Code is free of material misstatements. The 

evaluation basically includes interviews with the responsible persons as well as an examination, on a test basis, 

of compliance with the Austrian Corporate Governance Code. We performed our evaluation based on the questionnaire 

issued by the Austrian Working Group for Corporate Governance. Our evaluation we did not reveal any facts 

that conflict with the statement issued by the Executive Board on compliance with the provisions of the Austrian 

Corporate Governance Code. Our liability as auditors of the annual financial statements is determined by the provisions 

of § 275 Par. 2 of the Austrian Commercial Code. 

Vienna, 1 August 2007 

KPMG 

Wirtschaftsprüfungs- und Steuerberatungs GmbH 

Yann-Georg Hansa Günther Hirschböck 

Certified Public Accountants Certified Public Accountants 


IMMOEAST is listed on the Vienna Stock Exchange and, since 25 May 2007, also on the Warsaw 

Stock Exchange. In addition to the Austrian Corporate Governance Code, IMMOEAST also declares 

its support for the “Best Practices in Public Companies”, a guideline issued by the Warsaw Stock 

Exchange, and follows these rules to the greatest extent possible. Deviations from this guideline 

are related primarily to rules that are not met because of the company’s primary focus on Austrian 

regulations. Detailed information on the Polish corporate governance regulations is provided on the 

IMMOEAST homepage under www.immoeast.com. 










Continuous monitoring of 

rules defined by Issuer 

Compliance Compliance Regulations 

KPMG KPMG evaluates 

implementation implementation and and 

correctness of statement 

of compliance 

compliance

Report of the 

Supervisory Board 

Continuous involvement of the 


Successful continuation of 

expansion course creates basis 

for excellent results 

The Supervisory Board and the Executive Board worked closely together during 2006/07 for the 

benefit of the company and in accordance with the principles of good corporate governance. The 

financial position and strategic development of the company as well as major events and investments 

were discussed extensively and candidly at these meetings. Specific issues and decisions 

were evaluated between the meetings in discussions between the Chairmen of the Supervisory 

Board and Executive Board. The investments planned by the company were deliberated and analysed 

in detail at the Supervisory Board meetings, and the Executive Board requested and received 

the approval of the Supervisory Board for all investment and sale transactions after providing verbal 

and written reports. In particularly urgent cases, the Supervisory Board passed its resolutions in 

writing. 

The activities of the Supervisory Board during the 2006/07 financial year focused above all on 

examining the long-term business opportunities for the company together with the Executive Board 

and thereby setting the course for the profitable expansion strategy of IMMOEAST AG. In order 

to finance the company’s investment programme, the Annual General Meeting approved a capital 

increase in March 2006; this capital market transaction was carried out during May and June 

2006. It is an impressive confirmation of the positive development of the company that the entire 

proceeds from this capital increase have already been invested in a large number of acquisitions or 

development projects and generated excellent results in 2006/07. 

The Executive Board provided the Supervisory Board with regular, timely and comprehensive verbal 

and written reports and information on all key issues concerning the development of business and 

the risk position of the company. This enabled the Supervisory Board to monitor and support the 

management activities of the Executive Board on a continuous basis. 

The Supervisory Board held four meetings during the 2006/07 financial year, which were attended 

by all members. 

The Audit Committee of the Supervisory Board met once during the reporting year. In the presence 

of the auditor, the Audit Committee discussed the annual financial statements, consolidated 

financial statements and recommendation for the distribution of profits, and recommended that the 

Supervisory Board approve the annual financial statements. The Audit Committee obtained a state-

ment of independence from the auditor and issued a recommendation for the election of the auditor 

for the 2006/07 financial year. The Supervisory Board of IMMOEAST AG supports compliance with 

the Austrian Corporate Governance Code, and thereby also endorses the principles of responsible 

corporate management and control as well as the achievement of a high degree of transparency for 

all stakeholders of the company. A summary of the measures taken by IMMOEAST AG to implement 

the Austrian Corporate Governance Code is presented in the annual report and on the homepage 

of the company. 

Since the terms of office for the members of the Executive Board were scheduled to expire on 

30 April 2007, the Supervisory Board also dealt with the issue of succession planning for this body 

during the reporting year. In addition to the reappointment of Karl Petrikovics and Norbert Gertner, 

the Supervisory Board appointed Christian Thornton as a full member of the Executive Board and 

Edgar Rosenmayr as a deputy member of the Executive Board effective 1 May 2007. These appointments 

will secure the valuable experience of two long-standing IMMOEAST key managers for the 

benefit of the company in the future. Furthermore, Karl Petrikovics was reappointed as Chairman of 

the Executive Board and Chief Executive Officer. 

The annual financial statements and management report of IMMOEAST AG as of 30 April 2007 

(2006/07 financial year), which were prepared by the Executive Board, as well as the consolidated 

financial statements and consolidated management report as of 30 April 2007 (2006/07 financial 

year), which were prepared by the Executive Board in accordance with International Financial 

Reporting Standards (IFRS), were audited by KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft 

and awarded an unqualified opinion. All documentation for the financial 

statements as well as the audit reports, management letter and recommendation for the distribution 

of profit were discussed in detail by the Audit Committee in the presence of the auditor and 

presented to the Supervisory Board. The Supervisory Board has examined this documentation as 

required by § 96 of the Austrian Stock Corporation Act and accepted the annual financial statements 

for 2006/07, which are therefore considered approved in accordance with § 125 (2) of the Austrian 

Stock Corporation Act. The Supervisory Board also declared its agreement with the consolidated 

financial statements and consolidated management report, and approved the recommendation of 

the Executive Board for the use of retained earnings. The annual report by the internal audit department 

did not identify any risks which, in the absence of controls, could have a material effect on 

the continued existence or development of business in the company. Consequently, there were no 

grounds for objections. 

Erhard Schaschl, who was a member of the Supervisory Board since 9 October 2003, resigned at the 

end of February 2007 for personal reasons. The Supervisory Board would like to thank him for his 

many years of service and valuable contribution to the successful development of the company. 

In conclusion, the Supervisory Board would like to thank the management and employees of 

IMMOEAST AG for their commitment and performance during 2006/07. 

Vienna, 9 July 2007 

Helmut Schwager 

Chairman of the Supervisory Board 

Report of the Supervisory Board 










Expansion of Executive Board 

and extension of contracts for 

current members 

Acceptance and approval of 

annual financial statements

Future 

Developments 

PLANNED INVESTMENT PROGRAMME OF 

NEARLY EUR 6 BILLION AT RECORD LEVEL 

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Investment Programme 2007/08 

Investment Programme 2007/08 

Acquisitions of EUR 6 billion 

IMMOEAST plans to carry out an investment programme with a total volume of nearly EUR 6 billion 

during 2007. These expansion steps will be financed with the proceeds from the capital increase 

that was completed in May 2007, which raised equity of EUR 2.84 billion. That means the financing 

– including a debt component of roughly 50% – for the full range of investments is now secured. The 

2007/08 investment programme will top the previous high marked by the EUR 5 billion acquisition 

programme in 2006/07 by roughly EUR 1 billion. 

The investment programme for the coming year was prepared in detail during 2006/07. All projects 

were evaluated and analysed by the IMMOEAST asset management department at the start of the 

financial year and presented to the Supervisory Board for approval. 77% of the investment volume 

have been approved by the Supervisory Board and is now in the final stage of negotiations or due 

diligence, and 23% were completed before the end of the reporting year on 30 April 2007. 

These broad-based investments will also lead to a fundamental change in the structure of the 

IMMOEAST portfolio. New geographic and sector focal points will be established, and adjustments 

will also be made to the structure of investments: 

— From a geographic standpoint, the focus of investments will shift from Central and Eastern 

Europe (Poland, Slovakia, Czech Republic, Hungary) to South-eastern Europe (Romania, 

Bulgaria, Croatia, Serbia and Slovenia). The portfolio as of 30 April 2007 shows a dominating 

share of 57.4% for the countries of Central and Eastern Europe that joined the EU in 2004, 

while the latest investment programme includes 43.26% for South-eastern Europe and only 

32.81% for Central and Eastern Europe. The share of investments in Russia and Ukraine, which 

previously represented only 7.4% of the Group’s investment properties, will be significantly 

increased and is reflected in a 23.91% share of the 2007/08 investment programme. 

— The sector focus shows a clear shift toward retail properties: approx. 61% of investments will 

be directed to this market in 2007/08, while the comparable portfolio figure for 2006/07 

equalled only approx. 30%. Parallel to this development, the office sector will be reduced 

from its previous overriding level of 37.7% to roughly 30% of new investments. The increasing 

concentration on the retail sector will also lead to a reduction of investments in the logistics 

and residential areas. 

— The share of investments in development projects will also rise significantly. In the 2007/08 

investment programme, these projects represent two-thirds of the total volume. Nearly 9% of 

investments will represent the acquisition of stakes in other property companies, generally in 

property developers. However, this figure does not include the purchase of objects developed 

by companies in which IMMOEAST is a shareholder. For this reason, the strategic importance 

of participations in other companies is not reflected in the nominal percentage of these holdings 

in relation to the total investment volume. 










Proceeds of EUR 2.84 billion 

from the capital increase in 

May 2007 support the largest 

investment programme to 

date by IMMOEAST 

Investment Investment programme 

programme 

triggers geographic and 

sector changes


Investment programme 

2007/08 of EUR 6 billion 

by sector 


The increase in the share of development projects will also strengthen the earnings potential of the 

portfolio. As a rule, IMMOEAST does not take on the full development risk associated with these 

projects but acts in cooperation with local or international developers. The agreements concluded 

for development projects generally transfer the risk associated with the construction of a property 

– and frequently also the full or partial risk of rental – to the developer. Although these agreements 

reduce the earnings opportunities for IMMOEAST, they permit the exact management and 

limitation of risk. 



Offices 30.0% 

Transactions and investment properties in figures 

and in the annual financial statements 

Significant parts of the 2007/08 investment programme will not be recognised in the financial statements 

for that financial year, in particular development projects. The costs for these projects are 

distributed regularly over several financial years and are therefore not recognised in total at the 

same time but in stages over a number of accounting periods. This procedure automatically leads 

to major differences between the presentation of the property portfolio and investment programme 

from a commercial standpoint, on the one hand, and the property portfolio and investments as 

reported on the balance sheet and cash flow statement (cash flow from investing activities), on the 

other hand. 

Construction projects or forward purchases are typical examples of projects that involve the accounting 

recognition of a major part of the contracted investments in subsequent periods. For construction 

projects, only the generally minor cost of the land is recorded when the investment decision is 

made; the substantially higher construction costs are reflected in the financial statements during 

later periods as development progresses. Forward purchases – for example, an agreement with a 

developer to acquire an office building at a fixed price after completion – are recognised in full only 

in later periods. 

61.0% Retail

Strategic partnerships 9.0% 

Investment properties 25.0% 

Central and Eeastern 

Europe (CEE) 32.8% 

Commonwealth of 

Independent States 

(CIS 23.9% 

Subsequent Events 


66.0% Development properties 

43.3% South-eastern Europe (SEE) 

Continuation of growth course 

On the first day of the 2007/08 financial year, IMMOEAST started the largest issue of shares in the 

history of the company: the capital increase carried out from 2 to 21 May 2007 led to the sale of 

277.9 million new shares. The issue price was determined through a bookbuilding procedure, and 

equalled EUR 10.20 per share. The volume of the issue totalled EUR 2.84 billion. This capital market 

transaction by IMMOEAST was the largest issue to date by a European property company and the 

second largest capital increase by a listed company in Austria. 

Strong demand by institutional and private investors led to the easy placement of the issue, which 

was oversubscribed roughly two-times. The public offering in Poland also generated substantial 

interest (see text box: “Second listing in Warsaw”). The majority shareholder IMMOFINANZ exercised 

its subscription rights in full and continues to hold a stake of 50.46%. 

This capital market transaction led to a strong increase in the market capitalisation of IMMOEAST. 

At the end of June the stock exchange value of the company totalled EUR 8.7 billion That makes 

IMMOEAST the Number 2 listed property company in Continental Europe. A ranking of property companies 

that focus on investments in Central, Eastern and South-eastern Europe and the successor 

states of the former Soviet Union shows IMMOEAST with a substantial lead as Number 1. 












by type of investment 




by primary segment 


Successful EUR 2.84 billion 

capital increase 

Issue clearly over-subscribed 

despite record volume


Supervisory Board expands 

Executive Board to reflect reflect 

increasing scope of business 

activities 

Investment programme for 

2007/08 with record volume of 

nearly EUR 6 billion 

Expansion of the Executive Board 

The Executive Board of IMMOEAST was also expanded at the start of the 2007/08 financial year to 

reflect the strong growth in the scope of business activities. Christian Thornton, the long-standing 

head of Group accounting at IMMOEAST, was appointed as a new member of the Executive Board. 

In this position, Thornton will also be responsible for finances. Furthermore, Edgar Rosenmayr, one 

of the leading asset managers of IMMOEAST, was appointed to the Executive Board as a deputy 

member. The Annual General Meeting in September 2007 will be asked to approve an amendment 

to the Articles of Association, which will permit an increase in the Executive Board to more than the 

three members currently allowed. 

Fast start for new investment programme 

IMMOEAST will use the funds raised by the capital increase in May 2007 to finance an extensive 

investment programme with a total volume of EUR 5.975 billion. Since the 2006/07 investment programme 

was completed in full after only three quarters, several projects from the new programme 

were started earlier than originally planned and transactions with a volume of EUR 1.4 billion were 

concluded at the start of 2007/08. Investments of EUR 2.3 billion – or roughly 38% of the total 

planned volume for the year – were realised after only two months by the end of June 2007. The most 

important transactions concluded after the end of the reporting period include the following: 

— Gold Plaza Shopping Centre (Romania) 

IMMOEAST acquired 80% of the Gold Plaza development project in Baia Mare, a city with a 

population of 150,0000. The investment volume for this property totals EUR 97 million. The 

shopping centre with 43,000 sqm of letable space is scheduled for completion during the 

fourth quarter of 2008, and IMMOEAST plans to acquire the remaining shares at that time. 

— Pantelimon + Logistics Developments (Romania) 

Together with a local partner, IMMOEAST has signed an agreement to develop ten logistics 

centres in Romania with 400,000 to 500,000 sqm of letable space. The investment volume will 

equal roughly EUR 300 million. The first project, the Pantelimon Warehouse Logistics Centre 

(52,000 sqm) on the outskirts of Bucharest, will be completed later this year. 

— Euro Mall Pitesti (Romania) 

The Euro Mall in the university city of Pitesti was acquired for EUR 87 million. This facility was 

completed in May 2007 and is fully occupied. The Euro Mall Pitesti meets the highest international 

standards and has 32,000 sqm of letable space. 

— Rondo Jazdy Polskiej (Poland) 

The Rondo Jazdy Polskiej office project in the centre of Warsaw is under development by S+B 

CEE, an IMMOEAST shareholding. This object has excellent connections to the transportation 

network and will be completed in summer 2009; the investment volume totals EUR 36 million.


— TriGránit Urban Development Projects in St. Petersburg (Russia) 

The property developer TriGránit (IMMOEAST stake 25%) and the city government of 

St. Petersburg have signed a framework agreement covering a number of major urban 

development projects. This makes TriGránit the most important developer in this 

second largest city in Russia. 

— STOP.SHOP. Offensive (Czech Republic) 

IMMOEAST has started an extensive investment programme in the retail sector of the Czech 

Republic. Beginning in autumn of this year, 18 new specialty shopping centres will be opened 

at a rate of nearly one each month up to the end of 2009. Construction has started on nearly 

all objects. The letable space in all properties amounts to roughly 115,000 sqm and a total of 

EUR 137 million will be invested. 

— S-Park (Romania) 

In the booming northern district of Bucharest, IMMOEAST acquired the S-park office development 

project with 45,000 sqm. The object was fully let before its completion in August 2007. 

A detailed list of investments made after the end of the reporting period is provided on page 254f. 










Second listing of IMMOEAST on the Warsaw Stock Exchange 

IMMOEAST combined its most recent capital increase with a second listing on the Warsaw Stock 

Exchange, and trading began on 25 May 2007. Prior to this date, IMMOEAST shares were tendered to 

private investors in Poland through a public subscription offer. This issue drew substantial interest 

and was heavy oversubscribed, with the banks unable to fill all orders by Polish investors. 

The start of trading on the Warsaw Stock Exchange represents an important step by IMMOEAST to 

broaden the international structure of its shareholder base. In addition to numerous institutional 

investors that hold stakes in the company, there are now a larger number of private shareholders 

outside Austria. IMMOEAST was also able to add numerous shareholders through public subscription 

offerings in the Czech Republic and Slovakia during 2006/07. 

The listing in Warsaw is also of major importance for institutional investors. IMMOEAST has always 

been an “eastern company” from a business standpoint, but its listing in Vienna as an Austrian 

corporation marked it as a “western company” – and, for this reason, some institutional investors 

were unable to purchase IMMOEAST shares based on their investment guidelines. That problem has 

now been eliminated with the start of trading in Warsaw. IMMOEAST management has confirmed 

that there are no plans to apply for further stock exchange listings at the present time.


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OFFICE PROPERTIES 

BG-Sofia 

Antim I 

BG-Sofia iNi 

Antim Tower 

BG-Sofia iNi 

Antim Tower (3 Projects) 

BG-Sofia iNi 

Enterprise Building 

(2 Objects) 

BG-Sofia iNi 

Elite 

CZ-Brno iNi 

Brno Business Park I 

(2 Objects) 

iNi =New 

CZ-Brno iNi 

Brno Business Park II 

(2 Projects) 

CZ-Brno iNi 

OC Petrov 

CZ-Prague 

Airport Business Center 

CZ-Prague 

Andel Park B 

CZ-Prague 

Anglická 20 

CZ-Prague 

Arbes 

CZ-Prague iNi 

BB Centrum (3 Objects) 

CZ-Prague iNi 

Diamond Point 

CZ-Prague 

European Business Center 

CZ-Prague iNi 

Havodka (4 Objects) 

CZ-Prague 

Italská 

CZ-Prague 

Jindrisská 16 

CZ-Prague 

Jungmannova 15 

CZ-Prague iNi 

Jungmannova Plaza 

CZ-Prague iNi 

Kilcullen Portfolio 

CZ-Prague 

Na Florenci 23 

CZ-Prague 

Na Prikope 14 

CZ-Prague 

Pankrác Business Corner

CZ-Prague 

Pankrác House 

CZ-Prague 

Panska 9 

CZ-Prague 

Pekarska Office 

(2 Objects) 

CZ-Prague 

Perlova 5 

CZ-Prague 

Prague Office Park I 

CZ-Prague 

Prague Office Park II 

CZ-Prague 

Prokopova 20 

CZ-Prague iNi 

Skofin Office Building 

CZ-Prague 

Stetkova 18 

CZ-Prague 

Valdek 

CZ-Prague 

Vinice 

CZ-Prague 

Vitek 

H-Budapest 

Árpád Center 

H-Budapest iNi 

Central Business Center 

H-Budapest 

East-West Business Centre 

H-Budapest 

Globe 3 

H-Budapest 

Globe 13 

H-Budapest 

Greenpoint 7 


Haller Gardens 

H-Budapest 

Mester Business Park 

H-Budapest 

Óbuda Gate Office Center 

H-Budapest 

Optima “A” Office Building 


Riverside Offices 

Millenium Towers I 

Vodafone Building 










H-Budapest 

Szépvölgyi Business Park 

H-Budapest 

West Gate Business Park 

H-Budapest 

Xenter 13 Office Building 

H iNi 

TriGránit Holding Portfolio 

(11 Projects) 

HR-Zagreb iNi 

Grand Center 

PL-Krakow 

Lubicz Office Building 

PL-Poznan 

Poznan Financial Center


PL-Warsaw 

Atrium Centrum 

PL-Warsaw 

Atrium Plaza 

PL-Warsaw 

BokserskaOfficeCenter 

PL-Warsaw iNi 

Brama Zachodnia 

PL-Warsaw 

Crown Point 

PL-Warsaw 

Crown Tower 

iNi =New 

PL-Warsaw 

Cybernetyki Office Centre 

PL-Warsaw 

Equator Office iNi 

Development (4 Projects) 

PL-Warsaw 

IO-1 

PL-Warsaw 

Mistral Office Building 

PL-Warsaw iNi 


(9 Objects) 

PL-Warsaw iNi 


Vega Development 

PL-Warsaw iNi 


Vega Tower 

PL-Warsaw iNi 

Salzburg Center 

PL-Warsaw iNi 

Wisniowy Business Park C 

PL-Warsaw iNi 

Wisniowy Business Park D 

PL-Warsaw iNi 

Wisniowy Business Park E 

PL-Warsaw iNi 

Passat Office Building 

PL iNi 


(11 Projects) 

RO-Bucharest 

Baneasa Airport Tower 

RO-Bucharest 

Bucharest Corporate 

Center BCC 

RO-Bucharest 

Feper 

RO-Bucharest 

Global Business Center 

RO-Bucharest 

Iride Business Park 

RO-Bucharest iNi 

Iride Business Park IV 


Iride Business Park V 


Jandarmeriei Street 5-9 

RO-Bucharest 

Otopeni 

RO-Bucharest 

Petricani Street 

RO-Bucharest 

Pipera Center I

RO-Bucharest 

Pipera II 


Poarta (City Gate) 


Victoria Park (4 Projects) 

RUS-Moscow 

Berlin House 

RUS-Moscow 

Gogolevsky Boulevard 11 

RUS-Moscow 

Lesnaya Street 3 

RUS-St. Petersburg iNi 

Petrovsky Fort 

Business Center 

SCG iNi 


SK-Bratislava 

Bratislava Business Center 

IIIundIV(2Objects) 

SK-Bratislava 

Bratislava Business 

Center V 

SK-Bratislava iNi 

Lakeside 

SK-Bratislava 

Polus Center 

Millenium Tower I 

SK-Bratislava 

Polus Center 

Millenium Tower II 

SK-Bratislava 

Polus Center 

Millenium Tower III 

SK iNi 


(2 Projects) 

RECREATION/HOTEL 

PROPERTIES 


Palace of Arts 

RETAIL/ 

COMMERCIAL 

PROPERTIES 

Investment in iNi 

M.O.F. Immobilien AG 

(4 Objects) 

BG iNi 


BG-Sofia 

Predgarov 

CZ-Breclav iNi 

My Box Breclav 

(MyBoxPhase2) 

CZ-Hradec Kralove 

Futurum Centrum 

CZ-Hranice iNi 

STOP.SHOP. Hranice 

CZ-Jablonec iNi 

My Box Jablonec 

(MyBoxPhase2) 

CZ-Jihlava iNi 

Shopping Centre Jihlava 

(Roma) 

CZ-Kolin iNi 

STOP.SHOP. Kolin 

CZ-Olomouc 

Hana Centrum 

CZ-Olomouc 

Olympia Centre 










CZ-Ostrava 

Futurum Centrum 

CZ-Pardubice iNi 

Grand Pardubice 

CZ-Prague iNi 

Metropolitan Properties JV 

CZ-Prague 

Shopping Centre STOP.- 

SHOP. Uherske Hradiste 

CZ-Prague iNi 

Kilcullen Portfolio, 

Showroom 

CZ-Prague 

Palladium 

CZ-Prague 

Park Hostivar 

CZ-Prague iNi 

Retail Project 

CZ-Pribram iNi 

STOP.SHOP. Pribram 

CZ-Rakovnik iNi 

STOP.SHOP. Rakovnik 

CZ-Sokolov iNi 

STOP.SHOP. Sokolov 

CZ-Strakonice iNi 

STOP.SHOP. 

Strakonice


CZ-Tabor iNi 

Shopping Centre 

Tabor (Roma) 

CZ-Trebic iNi 


Trebic (Roma) 

CZ iNi 


H-Bekescsaba iNi 

STOP.SHOP. Phase III 

H-Bekescsaba iNi 

STOP.SHOP. Phase IV 

H-Budapest 

STOP.SHOP. (3 Objects) 

H-Debrecen iNi 


H-Érd 

STOP.SHOP. 

H-Érd iNi 

STOP.SHOP. Expansion 

H-Gödöllö iNi 


H-Gyöngyös iNi 

STOP.SHOP. Gyöngyös 

Phase III 

H-Gyöngyös iNi 


H-Kaposvar iNi 


H-Keszthely iNi 


H-Mateszalka iNi 

STOP.SHOP. Mateszalka 

Phase III 

H-Miscolc iNi 


H-Nagykanizsa iNi 

STOP.SHOP. Nagykanizsa 

Phase III 

H-Nyíregyháza 

STOP.SHOP. 

H-Oroshaza iNi 

STOP.SHOP. Oroshaza 

Phase III 

H-Salgotarjan iNi 

STOP.SHOP. Salgotarjan 

Phase III 

H-Tatabanya iNi 


H-Veszprém 

STOP.SHOP. 

H-Veszprém iNi 

STOP.SHOP. Expansion 

HR-Vrbani iNi 

Vrbani Shopping Centre 

PL-Kalisz iNi 

Shopping Centre Kalisz 

PL-Katowice 

Silesia City Center 

PL-Lodz iNi 

Diamond Business Park 

PL-Wloclawek 

Real Hypermarket 

RO-Brasov iNi 

IUS Brasov (4 Projects) 

RO-Cluj iNi 

Polus Center Cluj 

RO-Constanta 

Harbourside Constanta 

RO-Constanta iNi 

Polus Center Constanta 

RO-Craiova iNi 

Shopping Centre Craiova 

RO-Galati iNi 

Euromall Galati 

RO-Glina iNi 

Shopping Centre Glina 

RO-Pitesti iNi 

Euromall Pitesti 

RO-Sibiu iNi 

EKZ Sibiu (S+B CEE) 

RO-Targu Jiu iNi 

EYEMAXX RetailPortfolio (Shopping Centre Targu Jiu) 

RO-Targu Mures iNi 

Shopping Centre Targu Mures 

(S+B CEE) 

RO iNi 

EYEMAXX RetailPortfolio (25 Projects) 

RO iNi 


(2 Projects) 

RUS-Moscow iNi 

Fifth Avenue 


Golden Babylon I 


Golden Babylon II 


Hypercenter 

RUS-Moscow 

Hypercenter 

Investment SA I 

RUS-Moscow 

Hypercenter 

Investment SA II 

RUS-Moscow 

Hypercenter 

Investment SA III 

RUS-Moscow 

Hypercenter 

Investment SA IV 

iNi =New


Rostokino 

SK-Bratislava 

Polus City Center 


STOP.SHOP. Bratislava 

SK-Lucenec iNi 

STOP.SHOP. Lucenec 

SK-Nitra iNi 

STOP.SHOP. Nitra 

SK-Nove Zamky iNi 

STOP.SHOP. 

Nové Zámky 

SK-Poprad 

STOP.SHOP. Poprad 

SK-Presov iNi 

STOP.SHOP. Presov 

SK-Prievidza iNi 

Arkadia Shopping Center 

SK-Ruzomberok iNi 

STOP.SHOP. Ruzomberok 

SK-Trenčín iNi 

STOP.SHOP. Trenčín 

SK-Trnava iNi 

Arkadia Trnava Shopping 

Park 

SK-Zvolen iNi 

STOP.SHOP. Zvolen 

SLO-Kranj iNi 

Shopping Centre Kranj 

SLO-Nove Mesto iNi 


Nove Mesto 

SLO iNi 


LOGISTICS 

PROPERTIES 

CZ-Brno iNi 

Honeywell Center 

CZ-Brno iNi 

Honeywell Center 

Development 

CZ-Prague 

Rudna Logistics Park 

(16 Objects) 

CZ-Prague 

Rudna Logistics Park 

Phase II 

CZ-Prague 

Westpoint Distribution 

Park 

H-Budapest 

Camel Park 

H-Budapest 

Pharma Park 

H-Budapest 

Shark Park 

H-Dunaharaszti 

Logistics property 

Dunaharaszti 

LT-Dobrovole iNi 

Dobrovoles Warehouse 

PL-Kolonia Klepaczka 

Silesia Logistic Park 

PL-Warsaw 

Bokserska Distribution 

Park 

PL-Warsaw 

Lopuszánska Business 

Park 

PL-Warsaw iNi 

Platan Park 










PL-Warsaw iNi 

Warsaw Distribution Centre 

PL-Warsaw 

Zeran Park 


Bucharest Distribution 

Park (8 Projects) 

RO-Ploiesti iNi 

Almera Logistik Portfolio 

RO-Timis¸oara iNi 


RO iNi 


(4 Projects) 


Sholohovo 


Tomilino-Project 

RUS-St. Petersburg 

Warehouse Complex 

Shushary 

SK-Bratislava 

Senec Cargo Center 

(2 Objects) 

UA-Kiev iNi 

Alacor Business Park City 

(2 Projects) 

UA-Kiev iNi 

Alacor Logistics Park City 

Obukhov


RESIDENTIAL 

PROPERTIES 

BG-Sofia 

Cerkovna 

BG-Sofia iNi 

Engel Joint Venture III 

(6 Projects) 

BG-St. Vlas 

Sunny Beach 

BG-Zarevo iNi 

Koral Bay I 

BG-Zarevo iNi 

Koral Bay II 

CZ-Prague 

Netlu 

CZ-Prague 

Novy Eden 

iNi =New 

CZ-Prague 

Stodulky 

CZ-Prague 

Vokovice 

EE-Tallinn 

Haabersti (Ronnamoisa 

tee) 


Duna-Pest Condominium 

H-Budapest 

Engel Park 

H-Budapest 

Sun Palace 

H-Gyõr 

Gyõr 

H iNi 


HR iNi 


(3 Projects) 

PL-Katowice iNi 

DeboweTarasy–Silesia 

City Center Residential 

PL-Warsaw 

Lesna Polana (2 Objects) 

PL-Wilanow iNi 


(5 Projects) 

PL-Wilanow 

Hines Residential 


America School 

RO-Bucharest 

Baneasa (Felicity) 


CEFIN Residential JV 


Euromall Residential 


Floreasca Gardens 


Ghencea Residential 

Project 


Jandarmeriei Street 5-9 

RO iNi 

Adama (22 Objects) 

SCG-Belgrade iNi 

BEWO Bregalnicka Corner 

SCG-Belgrade iNi 

Francuska 

SCG-Dalmatinska iNi 

BEWO Dalmatinska 

SCG-Trnska iNi 

BEWO Trnska 


Century Residence 

UA iNi 

TriGránit Holding Portfolio

The Development 

of Business in 

2006/07 

Content 

1. The Economic Environment 69 

2. The Market Environment 70 

3. Corporate Profile 71 

4. Accounting and Valuation Policies 71 

5. Results for the 2006/07 Financial Year 71 

5.1. Earnings Position 71 

5.2. Financial Position 81 

5.3. Asset Position 82 

6. Segment Reports 86 

6.1. Segment CEE 86 

6.2. Segment SEE 93 

6.3. Segment CIS 97 

1. The Economic Environment 

The global economy was characterised by strong growth in 2006, which reinforced the positive 

trend set in past years. Development in Asia was generally stable, while the USA experienced a 

moderate slowdown and Western Europe reported an upturn. The momentum in Central and Eastern 

Europe has now outpaced the western economies for a number of years, with strong investment 

activity and rising disposable income driving growth by providing support for consumer spending. 

Forecasts call for a continuation of this sound performance during the coming years, even through 

individual countries such as Hungary or the Czech Republic may slowly approach the pace of development 

in the west. Russia, Ukraine, Bulgaria and Romania are expected to maintain a level of 

growth that exceeds the comparable figures for Western Europe. A comparison of the gross domestic 

product per capita confirms the enormous pent-up demand in these countries: the average for all 

OECD countries equalled USD 31,206, compared with USD 33,488 in the Euro zone and USD 44,187 

in the USA. In contrast, Poland reported per capita GDP of USD 8,882, Russia USD 9,800, Bulgaria 

USD 8,200 and Romania USD 7,700. 

Interest rates 

The low interest rate policy pursued up to 2004 – the key rate set by the US Federal Reserve was 

1.6% at that time – has since been replaced by a gradual increase in interest rate levels, with the 

three-month rate climbing to 5.25% by the end of 2006. Although a noticeable decline is not expected 

during 2007, the actual results will depend on economic developments. The European Central 

Bank gradually raised the prime rate from 2.5% in December 2005 to 3.5% in late 2006 and 4.0% 

at the end of June 2007. In this operating environment the use of hedging instruments, the develop- 










Economic upturn in Europe, 

slight weakness in USA 

Increase in interest rates


Exchange rates rise in 

key submarkets 

GDP growth in comparison 

in % 

Expansion of business 

to include Ukraine, Russia, 

Bulgaria, Serbia, Croatia Croatia 

and Slovenia 

ment of innovative financing models and the identification of an optimal balance of equity and debt 

to utilise the leverage effect represent key success factors for property investors like IMMOEAST. 

Foreign exchange rates 

Of the 13 countries in which IMMOEAST invests, Poland, Hungary, the Czech Republic, Slovakia, 

Slovenia, Romania and Bulgaria are members of the European Union. Only Slovenia is also a member 

of the European Monetary Union and uses the Euro as its official currency. Slovakia is the only 

participant in the ERM II exchange rate system, which is a prerequisite for the introduction of the 

common currency and limits the fluctuations in the Slovakian Krone to a maximum of 15%. The 

Bulgarian Leu is tied to the Euro through a currency board. The other countries in which IMMOEAST 

is present have their own independent national currencies which, in turn, represent the functional 

currencies on which the annual financial statements of IMMOEAST are based. Foreign exchange 

gains and losses that result from the translation of monetary assets and liabilities are recognised 

to the income statement in the year they occur. The currencies of Hungary, Poland, Slovakia and 

Romania increased in value compared with the Euro during 2006/07, with the Hungarian Forint 

demonstrating strong volatility. 

6 

5 

4 

3 

2 

1 

0 

Austria Euro zone 

*) Estonia, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia, Czech Republic, Hungary, Cyprus, Bulgaria, Romania 

2. The Market Environment 

USA EU-12*) 

2007e 

The activities of IMMOEAST concentrated on Hungary, the Czech Republic, Poland, Slovakia and 

Romania in recent years, but this radius was extended during 2006/07. In addition to Ukraine, 

Russia and Bulgaria, the first direct investments were made in Slovenia, Croatia and Serbia. These 

markets are currently in different stages of development: while the Czech Republic and Hungary 

have approached western levels in several sectors during recent years, the pent-up demand in 

South-eastern Europe, Ukraine and Russia remains enormous. IMMOEAST is able to profit from 

these varying stages of maturity with an optimal diversification of risk as well as a high degree of 

flexibility in determining the focal points of investments. Each of these markets has its own unique 

characteristics, which are also examined in the following analysis of the development of business 

during the 2006/07 financial year. 

2006 

2005

3. Corporate Profile 

IMMOEAST is one of the largest and most successful property investors in Central and Eastern Europe. 

The company is a leading player in this region with a property portfolio that currently includes 213 

directly owned properties as well as 172 objects held through various investment vehicles that cannot 

or may not be consolidated, for a proportional share of letable space totalling 4,891,316 sqm. 

The IMMOEAST portfolio is diversified through two different types of segments: the segmentation 

based on region comprises the CEE segment (Hungary, Czech Republic, Poland and Slovakia), SEE 

segment (Romania, Bulgaria, Serbia, Croatia and Slovenia) and CIS (Russia and Ukraine) segment, 

while the segmentation based on sector reflects the various uses or types of properties such as 

offices, logistics facilities, commercial and residential objects. IMMOEAST does not manage car 

parks and parking spaces as a separate area of business because the revenues generated from 

these activities are generally related to the rental of offices or logistics properties. However, parking 

is classified as a secondary segment of business due to its financial importance. 

In addition to operational diversification, IMMOEAST also holds financial investments that support 

a broader distribution of risk and provide access to attractive projects. These investments in 

other companies represent property holdings in Russia, Bulgaria and Serbia as well as the countries 

listed above as primary segments. 

IMMOEAST receives operational support from Constantia Privatbank AG through a management 

contract that was concluded between the two companies. 

4. Accounting and Valuation Policies 

The introduction of new accounting standards and a change in the accounting methods selected 

from available options have had a significant influence on the results reported by IMMOEAST and 

limit comparability with previous annual financial statements. Information on the accounting and 

valuation methods used by IMMOEAST is provided on page 172f of the notes. 

5. Results for the 2006/07 Financial Year 

5.1 Earnings position 

The following table shows summarised data from the IMMOEAST income statements for the 2006/07 

and 2005/06 financial years according to the fair value model defined in IAS 40.33: 

Income Statement – Summary 

All amounts in TEUR 2006/07 2005/06 Change in % 

Revenues 192,920.4 80,014.5 141.1% 

Operating profit (EBIT) 541,288.7 156,269.4 246.4% 

Financial results 104,163.5 26,676.3 290.5% 

Earnings before tax (EBT) 645,452.2 182,945.7 252.8% 

Net profit for the period 536,183.1 145,291.4 269.0% 

Earnings per share in EUR 1.02 0.76 34.8% 

The full income statement can be found on page 103. 

Economy and Branch 

Corporate Profile 

Results for 2006/07 










Regional and sector 

segmentation


Rental income and revenues by primary segment 

Rental Income Revenues 

All amounts in TEUR 2006/07 2005/06 Change in % 2006/07 2005/06 Change in % 

Hungary 23,775.2 15,399.4 8,375.8 54.4% 32,568.4 21,029.1 11,539.3 54.9% 

Czech Republic 31,096.0 16,863.8 14,232.2 84.4% 40,153.4 22,703.6 17,449.8 76.9% 

Poland 32,443.0 10,109.3 22,333.7 220.9% 45,845.3 14,692.3 31,153.0 212.0% 

Slovakia 14,566.7 5,254.0 9,312.7 177.3% 23,633.9 7,466.2 16,167.7 216.5% 

Segment CEE 101,881.0 47,626.6 54,254.4 113.9% 142,201.0 65,891.1 76,309.8 115.8% 

Romania 19,128.2 11,697.1 7,431.1 63.5% 22,806.3 14,115.6 8,690.7 61.6% 

Bulgaria 482.5 0.0 482.5 - 482.5 0.0 482.5 - 

Croatia 1,551.6 0.0 1,551.6 - 1,589.7 0.0 1,589.7 - 

Serbia 1.2 0.0 1.2 - 1.2 0.0 1.2 - 

Slovenia 961.8 0.0 961.8 - 1,113.1 0.0 1,113.1 - 

Segment SEE 22,125.4 11,697.1 10,428.3 89.2% 25,992.9 14,115.6 11,877.3 84.1% 

Russia 22,145.0 0.0 22,145.0 - 24,726.6 0.0 24,726.6 - 

Ukraine 0.0 0.0 0.0 - 0.0 - 

Segment CIS 22,145.0 0.0 22,145.0 - 24,726.6 0.0 24,726.6 - 

- 

Consolidation 0.1 0.0 0.1 - 0.1 -7.8 7.9 -101.1% 

Total 146,151.2 59,323.7 86,827.5 146.4% 192,920.4 80,014.5 112,905.8 141.1% 

Highest revenue growth 

in CEE segment 

Revenues rose by TEUR 112,905.9 (141%) to TEUR 192,920.4 and rental income increased by 

TEUR 86,827.5 (146%) to TEUR 146,151.2 during the 2006/07 financial year. Properties acquired 

during the financial year were responsible for TEUR 44,955.4 or approx. 40% of the growth in 

revenues. 

The CEE segment – which comprises Hungary, the Czech Republic, Poland and Slovakia – generated 

the largest share of revenues in 2006/07. Rental income in this segment rose by TEUR 54,254.4 

or 114% over the previous reporting year. Within the CEE segment, Poland recorded the highest 

relative growth in rental income with a plus of 221%. This development was supported by major 

acquisitions such as the Mokotow Business Park and Brama Zachodnia as well as the purchase of 

the remaining 43.4% stake in IMAK CEE. The second largest country market in the CEE segment is 

the Czech Republic, which recorded rental income of TEUR 31,096.0 in 2006/07 for an impressive 

increase of TEUR 16,863.8 or 84% over the 2005/06 financial year. The growth in this segment 

resulted above all from new acquisitions such as the three BB Centrum office buildings, the Diamond 

Point and the Lordship portfolio with properties in Brno and Prague. The subsegment Hungary 

also reported a substantial increase of 54% or TEUR 8,375.8 in rental income, which was related 

primarily to new acquisitions like the Central Business Center and the purchase of the remaining 

shares in IMAK CEE. The subsegment Slovakia reported a relative improvement of 177% or TEUR 

9,312.7 in rental income. It should be noted that the prior year figures reflect only four months of 

rental income from this region, while the 2006/07 data cover a full period.

Russia 15.2% 

Bulgaria 0.3% 

Slovenia 0.7% 

Croatia 1.1% 

Romania 13.1% 

Slovakia 10.0% 

SEE 

CIS 

CEE 

The CIS segment is responsible for the second largest contribution to Group rental income. Approximately 

15% of the total rental income reported by IMMOEAST in 2006/07, or TEUR 22,145.0, was 

earned in Russia. The strong growth in this segment was driven by three acquisitions in Moscow: 

the Golden Babylon I and II properties and the 5th Avenue shopping mall. 

The SEE segment with Romania, Bulgaria, Croatia, Serbia and Slovenia reported an increase of 

89% in rental income during 2006/07. The major part of this income was recorded in Romania with 

TEUR 19,128.2. In addition, the first rental income in Croatia and Slovenia was registered during 

2006/07. 

Structure of rental income by secondary segment 

22.2% Poland 

21.3% Czech Republic 

16.3% Hungary 



Offices 74,054.4 35,122.1 38,932.3 110.8% 

Logistics/commercial 68,544.1 22,765.3 45,778.8 201.1% 

Residential 55.4 55.2 0.2 0.4% 

Parking 3,497.3 1,381.0 2,116.3 153.2% 

Rental income 146,151.2 59,323.7 86,827.5 146.4% 

Sale of inventories 818.2 277.0 541.2 195.3% 

Operating costs 40,830.1 18,596.5 22,233.6 119.6% 

Other revenues 5,120.9 1,817.4 3,303.5 181.8% 

Revenues 192,920.4 80,014.5 112,905.8 141.1% 

An analysis of rental income by secondary segment shows a noticeable shift between the individual 

sectors during the reporting year. While 59% of Group rental income was recorded in the office 

sector during 2005/06, this figure declined to 50.7% in 2006/07. In contrast, the share of rental 

income generated by logistics and commercial space rose to 47%. This development reflects the 

IMMOEAST strategy, which calls for the acquisition of large shopping centres in major cities and 

important secondary municipalities as well as the continued expansion of the Group’s STOP.SHOP. 

brand with its smaller retail facilities in the CEE and SEE regions. This sector registered growth of 

201% to TEUR 68,544.1, while the increase in rental income from office space rose by a less-thanaverage 

111% to TEUR 74,054.4 of the Group total. 










Structure of rental income 

2006/07 by primary segment 

in % 

15% of rental income 

generated in Russia 

Growing importance 

of SEE segment 

Higher rental income 

in all segments


Structure of rental income 

by secondary segment 

in TEUR 

Three primary segments with 

different sector structures 

160,000 

120,000 

80,000 

40,000 

0 

2004/05 2005/06 2006/07 

Rental income and revenues by primary and secondary segment 

Parking 

Residential 

Logistics/commercial 

C E E S E E C I S 

All amounts in TEUR 2006/07 2005/06 Change in % 2006/07 2005/06 Change in % 2006/07 2005/06 

Offices 52,963.9 23,425.0 126.1% 21,090.5 11,697.1 80.3% 0.0 0.0 

Logistics/commercial 45,464.8 20,382.9 123.1% 961.8 0.0 - 22,117.5 0.0 

Retail 0.0 2,382.4 -100.0% 0.0 0.0 - 0.0 0.0 

Residential 55.4 55.2 0.4% 0.0 0.0 - 0.0 0.0 

Parking 3,396.8 1,381.0 146.0% 73.0 0.0 - 27.5 0.0 

Rental income 101,881.0 47,626.6 113.9% 22,125.4 11,697.1 89.2% 22,145.0 0.0 

Sale of inventories 818.2 276.7 195.7% 0.0 0.3 -100.0% 0.0 0.0 

Operating costs charged on 37,373.6 16,178.3 131.0% 3,839.3 2,418.2 58.8% 1,820.8 0.0 

Other 2,128.2 1,809.5 17.6% 28.2 0.0 - 760.8 0.0 

Revenues 142,201.0 65,891.1 115.8% 25,992.9 14,115.6 84.1% 24,726.6 0.0 

Offices 

(continued) Transition IMMOEAST Group 

All amounts in TEUR 2006/07 2005/06 2006/07 2005/06 

Offices 0.0 0.0 74,054.4 35,122.1 

Logistics/commercial 0.0 0.0 68,544.2 20,382.9 

Retail 0.0 0.0 0.0 2,382.4 

Residential 0.0 0.0 55.4 55.2 

Parking 0.0 0.0 3,497.3 1,381.0 

Rental income 0.0 0.0 146,151.3 59,323.7 

Sale of inventories 0.0 0.0 818.2 277.0 

Operating costs charged on 0.0 0.0 43,033.7 18,596.5 

Other 0.0 7.8 2,917.2 1,817.4 

Revenues 0.0 7.8 192,920.4 80,014.5 

The CEE segment reported rental income of TEUR 52,963.9 for 2006/07, which equals 36% of rental 

income recorded by the Group. The largest share of rental income from office space as well as the 

largest share of commercial space with rental income of TEUR 45,464.8 (31% of Group rental income) 

was recorded by this segment. This is a direct result of the many years of investment activity in the 

region. The second oldest segment – SEE and here, above all, Romania – is currently responsible for 

15% of total rental income. In this segment 95% of rental income is registered in the office sector, 

but the development of retail projects will change the weighting in the SEE segment, presumably by 

mid-2009. In the CIS region, IMMOEAST investments were limited to retail objects in Moscow during

2006/07. However, the extensive investment programme planned for the coming years is expected 

to lead to a more equal distribution of rental income over a number of sectors. 

Revaluation results 

Revaluation results include all increases and decreases in the value of investment properties as well 

as any impairment charges to development projects. In comparison to the previous year, revaluation 

results rose by 322% to TEUR 493,095.1. Properties acquired during the reporting year generated 

TEUR 297,464.9 or roughly 60% of the total amount. This significant increase was the result of two 

main factors: on the one hand, the yield compression in Central and Eastern Europe intensified significantly 

in relation to 2005/06 –Hungary was the only country to report a different development. 

On the other hand, IMMOEAST was able to acquire a number of interesting sites for future project 

development, which were revalued during 2006/07. Also included here are properties that did not 

exceed their acquisition cost in revaluations carried out during earlier years. Revaluation results 

include TEUR 163,541.0 from the revaluation of property sites in 2006/07, which represent 33% of 

total revaluation results. 

A strong rise in the Polish Zloty, Romanian Leu, Hungarian Forint and Slovakian Krone had a substantial 

negative impact on revaluation results for the year. This effect was particularly significant 

in Slovakia, where a 9.8% increase in the value of the Krone over the prior year level had an equal 

impact on revaluation results. The Hungarian Forint gained 6.4% in relation to the Euro, a development 

that was also reflected in revaluation results. 

Revaluation results by segment and as a % of property 


Revaluation results Property 










Strong development in spite 

of foreign exchange effects 

All amounts in TEUR 2006/07 2005/06 Change in % 2006/07 2005/06 Increase in value in % 

Hungary 13,596.8 46,637.2 -33,040.4 -70.8% 495,474.2 361,370.9 2.82% 14.8% 

Czech Republic 146,145.4 13,015.1 133,130.3 1,022.9% 933,479.6 390,231.5 18.56% 3.5% 

Poland 60,746.9 37,890.9 22,856.0 60.3% 821,483.2 375,275.0 7.99% 11.2% 

Slovakia 12,257.0 -3,623.9 15,880.9 - 293,278.9 241,370.0 4.36% -1.5% 

Segment CEE 232,746.1 93,919.3 138,826.8 147.8% 2,543,715.9 1,368,247.4 10.07% 7.4% 

Romania 117,134.2 23,066.8 94,067.4 407.8% 425,734.8 218,129.2 37.96% 11.8% 

Bulgaria 78,740.4 0.0 78,740.4 - 102,881.3 0.0 326.17% - 

Slovenia 8,818.7 0.0 8,818.7 - 31,329.2 0.0 39.18% - 

Segment SEE 210,901.6 23,066.8 187,834.8 814.3% 605,717.9 218,129.2 53.42% 11.8% 

Russia 49,447.4 0.0 49,447.4 - 352,480.7 0.0 16.32% - 

Segment CIS 49,447.4 0.0 49,447.4 - 352,480.7 0.0 16.32% - 

Total 493,095.1 116,986.1 376,109.0 321.5% 3,501,914.5 1,586,376.6 16.39% 8.0% 

-


Highest increase in value 

in Czech Republic 

SEE profits from rise in value 

of property sites 

Decline in other operating 

income due to development 

of good will 

Deduction of deferred tax 

liabilities in determining 

book value of CGU 

The CEE segment recorded an impressive year-on-year increase of roughly 10% in the value of its 

investment properties during 2006/07. In comparison with the prior year, revaluation results in this 

segment rose by TEUR 138,826.8 or 148%. As explained above, the value of properties in Hungary 

and Slovakia increased by a relatively low 2.8% and 4.4%, respectively, in relation to assets. The 

strongest increase, both in percent and absolute value, was recorded by the Czech Republic with 

18.6% or TEUR 146,145.4. This development was supported by the yield compression, which was 

stronger here than in the other CEE countries and also continued after the end of the 2006/07 financial 

year. Furthermore, the start of a redevelopment project in the CSOB portfolio led to an additional 

revaluation gain of TEUR 40,410.5. The returns that are used in the valuation of investment 

properties ranged between 6.5% and 5.25%. Transactions with returns below 5.0% were noted 

after the balance sheet date on 30 April 2007, and indicate a further potential for an increase in the 

value of properties in this segment during 2007/08. 

The SEE segment recorded an increase of 53.4% in the value of its investment properties in relation 

to the property portfolio. This represents a revaluation gain of TEUR 210,901.6, which includes 

TEUR 151,835.5 from an increase in the value of property sites. The returns used in the valuation 

ranged from 8.75% to 6.5%. 

The CIS segment recognised an interim increase in value of 16% or TEUR 49,447.4, which resulted 

primarily from the yield compression that has also started to take hold in Russia. The returns used 

in the valuation ranged between 9.5% and 9.0%. 

Other operating income 

Other operating income is comprised primarily of gains on the sale of investment properties, the 

reversal of negative goodwill, gains and losses on the translation of foreign currency items related 

to operating activities, deconsolidation income and other positions. 

The slight decline of 11% in other operating income from TEUR 51,334.4 in 2005/06 to TEUR 45,724.6 

for the reporting year is the result of a decrease in negative goodwill, which represented 86% of 

other operating income in the prior year but fell to 11% in 2006/07. This development resulted from 

the use of the agreed transaction price for the recognition of properties at fair value on the acquisition 

date, instead of a revaluation based on expert opinions. In addition, negative goodwill from the 

acquisition of Salzburg Center S.A. was reversed because the returns defined in a forward purchase 

contract exceeded the current market value. 

Negative goodwill of TEUR 43,951.0 in the previous financial year resulted above all from the acquisition 

of Center Invest kft., the owner of the STOP.SHOP. chain in Hungary (TEUR 12,768.2), as well 

as the purchase of the remaining 90% of shares in Nowe Centrum sp. z o.o., the owner of the Silesia 

City Center (TEUR 19,726.2). 

Other operating income was positively influenced by foreign exchange effects of TEUR 15,411.4 

relating to the operating business as well as the sale of the Europe Tower, which generated a 

respectable gain of TEUR 14,053.1 on sale. 

Depreciation and amortisation 

This item is comprised chiefly of impairment charges to goodwill and depreciation on tangible 

assets. Depreciation and amortisation rose by TEUR 5,609.8 or 37% over 2005/06. In contrast to 

the prior year, the procedure followed in 2006/07 involved the deduction of deferred tax liabilities 

in determining the book value of a cash-generating unit (CGU) and a comparison with the fair value 

of the CGU. The fair value of deferred tax liabilities was set at zero in all cases because the deduc-


tion of these items in determining the purchase price for a property is generally not possible in the 

region in which IMMOEAST is active. 

Impairment charges of TEUR 43,244.0 to goodwill were largely the result of insufficient reserves 

(IAS 16) or insufficient valuation results. Any goodwill allocated to a property that was identified as 

impaired was also reduced through an impairment charge. 

Expenses related to properties 

Expenses related to properties consist for the most part of operating costs, valuation adjustments 

to receivables and other directly allocated expenses. The increase in these expenses is proportional 

to the growth in rental income. 

Other operating expenses 

Other operating expenses are comprised of administrative charges, consulting fees, taxes on property 

and legal transactions as well as commissions and advertising expenses. These expenses rose 

by 148% over the prior year to total TEUR 54,272.7 in 2006/07. The increase resulted primarily from 

higher administrative fees charged by Constantia Privatbank AG based on the management contract 

with IMMOEAST, which rose by 189% to TEUR 50,366.4. This development was triggered by the 

expansion of IMMOEAST and strong growth in the property portfolio. 

Legal, auditing and consulting expenses rose by 38% to TEUR 8,312.4. The need for consulting 

services increased during the reporting year, above all as a result of rapid changes in the legal and 

tax environments of the countries in Eastern Europe. In addition, audit costs rose due to an increase 

in the number of managed companies from 154 to 300. These expenses are expected to increase 

further over the coming years. 

Taxes and duties also rose by a significant 144% to TEUR 4,666.7, primarily as a result of building 

taxes that are charged in certain Central and East European countries. These taxes, in turn, triggered 

an increase in transaction taxes because of the higher number of properties in the portfolio. 

In addition, the trade tax in Hungary and the capital investment tax on direct shareholder contributions 

in Austria contributed to the increase in this category of expenses. The many investor relations 

events held during the reporting year also resulted in higher advertising expenses, which rose by 

24% to TEUR 1,914.1. 

A sharp rise of TEUR 1,808.8 to TEUR 2,254.9 was recorded in the cost of expert opinions, which 

resulted chiefly from the initial preparation of valuations by the international property experts 

Colliers and DTZ. In subsequent periods, the expenses for property valuation will decline by roughly 

30% for objects owned by IMMOEAST during the 2006/07 financial year. 

Miscellaneous other operating expenses include TEUR 9,748.3 of exchange rate effects that were 

allocated to operating activities. The increase of TEUR 2,465.63 in penalties to TEUR 4,134.8 represents 

a provision for risk. 










Expansion-related increase 

in administrative fees 

Number of managed 

companies rises 

from 154 to 300 

Initial valuation valuation by 

Colliers International 

International 

and DTZ


246% increase in EBIT 

Development of earnings 

influenced by declining returns 

in Central and Eastern Europe 

Operating profit (EBIT) 

EBIT reached a new record level in 2006/07, rising by 246% to TEUR 541,288.7. As in previous years, 

this development was strongly influenced by the development of revaluation results. In 2005/06 

revaluation results represented 75% or TEUR 116,986.1 of Group EBIT totalling TEUR 156,269.4, 

but this figure comprised 91% or TEUR 493,095.1 of Group EBIT (TEUR 541,288.6) for the reporting 

year. The contribution made by revenues to EBIT declined from TEUR 80,014.5 or 51% in 2005/06 to 

TEUR 192,920.4 or 36% in the 2006/07 financial year. 

The primary reason for this development was the yield compression, which influenced the entire 

Central and East European region. While prime yields averaged slightly more than 6.0% in the previous 

year, transactions – above all in the CEE segment – approached the 5.0%-mark and, in individual 

cases, fell below this level after the balance sheet date on 30 April 2007. Returns in the SEE 

segment fell by a more substantial margin, especially in Romania and Bulgaria. The prime yield 

remained near 8.0% in the previous year, but is now only slightly more than 6.0% in Romania and 

7.0%, in Bulgaria. 

This development is clearly demonstrated by the above comparison of EBIT and revaluation results 

by segment. The CEE segment recorded an increase of roughly 175% or TEUR 189,728.7 over 

the previous year, maintaining its leading position over the other two segments. The largest contributions 

to EBIT and revaluation results in the CEE segment were provided by the Czech Republic 

(TEUR 157,071.0) and Poland (TEUR 81,234.3). 

Comparison of EBIT and revaluation results by primary segment 

EBIT Revaluation results 

All amounts in TEUR 2006/07 2005/06 Change in % 2006/07 2005/06 Share in % 

Hungary 36,310.6 54,550.3 -18,239.7 -33.4% 13,596.8 46,637.2 37.4% 85.5% 

Czech Republic 157,071.0 19,550.8 137,520.1 703.4% 146,145.4 13,015.1 93.0% 66.6% 

Poland 81,234.3 56,023.5 25,210.8 45.0% 60,746.9 37,890.9 74.8% 67.6% 

Slovakia 23,816.7 -21,420.8 45,237.5 -211.2% 12,257.0 -3,623.9 51.5% 16.9% 

Segment CEE 298,432.5 108,703.8 189,728.7 174.5% 232,746.1 93,919.3 78.0% 86.4% 

Romania 128,009.7 31,804.7 96,205.0 302.5% 117,134.2 23,066.8 91.5% 72.5% 

Bulgaria 78,643.7 0.0 78,643.7 - 78,740.4 0.0 100.1% - 

Croatia 7,350.3 0.0 7,350.3 - 6,208.2 0.0 84.5% - 

Serbia -259.0 0.0 -259.0 - 0.0 0.0 0.0% - 

Slovenia 9,406.0 0.0 9,406.0 - 8,818.7 0.0 93.8% - 

Segment SEE 223,150.8 31,804.7 191,346.1 601.6% 210,901.6 23,066.8 94.5% 72.5% 

Russia 61,424.0 0.0 61,424.0 - 49,447.4 0.0 80.5% - 

Ukraine -12,230.1 0.0 -12,230.1 - 0.0 0.0 0.0% - 

Segment CIS 49,193.9 0.0 49,193.9 - 49,447.4 0.0 0.0% - 

Consolidation 29,488.6 15,760.8 -45,249.4 - 0.0 0.0 0.0% - 

Total 541,288.6 156,269.4 385,019.3 246.4% 493,095.1 116,986.1 91.1% 74.9%

The SEE segment generated TEUR 223,150.8 or 41% of Group EBIT in 2006/07. This development 

was supported above all by Romania (TEUR 128,009.7) and Bulgaria (TEUR 78,740.4). Only Serbia 

reported negative EBIT of TEUR -259.0, which resulted from impairment charges to goodwill. 

The first contribution by the new CIS segment to Group EBIT totalled TEUR 49,193.9 or 9%. EBIT 

reported by Ukraine was negative because of an impairment charge recognised to goodwill in the 

Alacor Group. 

Cash EBIT totalled TEUR 65,383.6 for the 2006/07 financial year. 


Central and Eastern Europe, the oldest and largest segment of IMMOEAST, reported an above-average 

increase of TEUR 72,299.0 in cash EBIT. 

Cash EBIT and cash EBIT margin by primary segment 

C E E S E E C I S 

All amounts in TEUR 2006/07 2006/07 2006/07 

Operating profit (EBIT) 298,432.4 223,150.8 49,193.9 

Revaluation of properties -232,746.1 -210,901.6 -49,447.4 

Depreciation and amortisation 22,058.4 4,746.0 16,668.0 

Gain/loss on the sale of non-current assets -14,026.2 0.0 16.6 

Other non-cash income/expenses 163.7 -4,189.9 495.7 

Income taxes paid -1,583.1 -1,187.7 -4,149.0 

Cash EBIT 72,299.0 11,617.7 12,777.9 

Revenues 142,200.9 25,992.9 24,726.6 

Cash EBIT margin 50.8% 44.7% 51.7% 

(continued) Other and Group Eliminations IMMOEAST Group 

All amounts in TEUR 2006/07 2006/07 

Operating profit (EBIT) -29,488.5 541,288.7 

Revaluation of properties 0.0 -493,095.1 

Depreciation and amortisation 343.9 43,816.3 

Gain/loss on the sale of non-current assets -0.1 -14,009.7 

Other non-cash income/expenses -2,132.6 -5,663.1 

Income taxes paid -33.7 -6,953.5 

Cash EBIT -31,310.9 65,383.6 

Revenues 0.0 192,920.4 

Cash EBIT margin 0.0% 33.9% 











Improvement of 290% 

in financial results 

2% effective tax rate 

Financial results 

Financial results comprise current financing costs (interest income and interest expense) as well 

as profit and loss on financial investments and the proportional share of profit and loss from associated 

companies. The 2006/07 financial year brought an increase of 290% or TEUR 77,487.3 in 

financial results to TEUR 104,163.5. This development resulted from the strong expansion of the 

Group’s financing activities on behalf of partners and the parent company, which led to the first 

clearly positive net financing costs of TEUR 14,131.8. In addition, the investment of surplus liquid 

funds from the capital increase and the valuation of financial instruments generated TEUR 48,429.7 

in 2006/07 compared with TEUR 14,680.3 in the prior year. Distributions from financial instruments 

held by IMMOEAST totalled TEUR 5,422.2. Exchange rate gains and losses equalled TEUR 34,356.6 

in 2006/07 compared with TEUR 11,141.5 in 2005/06. 

Financial results by segment 


Hungary 2,654.0 -16,591.0 19,245.0 116.0% 

Czech Republic -12,926.9 4,505.9 -17,432.8 -386.9% 

Poland -10,873.1 1,505.4 -12,378.5 -822.3% 

Slovakia 10,459.7 -271.5 10,731.2 -3,952.6% 

Segment CEE -10,686.3 -10,851.2 164.9 -1.5% 

Romania -6,730.9 -1,602.9 -5,128.0 319.9% 

Bulgaria -441.8 0.0 -441.8 - 

Croatia -684.3 0.0 -684.3 - 

Serbia -19.5 0.0 -19.5 - 

Slovenia -0.2 0.0 -0.2 - 

Segment SEE -7,876.7 -1,602.9 -6,273.8 391.4% 

Russia -2,350.3 0.0 -2,350.3 - 

Ukraine -40.5 0.0 -40.5 - 

Segment CIS -2,390.8 0.0 -2,390.8 - 

Consolidation 125,117.3 39,130.4 -85,986.9 - 

Total 104,163.5 26,676.3 77,487.3 290.5% 

The above table shows that financial results – with the exception of foreign exchange effects – are 

generated to a limited extent by the operating segments and realised primarily at the holding company 

level. 

Income taxes 

This item includes income tax expense as well as provisions for deferred taxes. Income tax expense 

for the group rose from TEUR -37,654.3 in the prior year to TEUR -109,269.1 for 2006/07, but 

represents a decrease in the group tax rate from von 20.6% to 16.9%. A calculation based on 

TEUR -13,062.8 of income taxes actually paid for the reporting year shows a rate of 2% for the 

actual taxation of earned income.

5.2 Financial position 

Cash flow statement 


Gross cash flow 63,361.5 24,854.1 154.9% 

Cash flow from operating activities -121,097.5 6,783.7 -1,885.1% 

Cash flow from investing activities -2,174,279.3 -799,448.5 172.0% 

Cash flow from financing activities 2,664,752.7 1,056,146.7 152.3% 

Cash and cash equivalents at the beginning of the period 317,728.7 58,811.7 440.2% 

Cash and cash equivalents at the end of the period 702,146.3 317,728.7 121.0% 

Change in cash and cash equivalents 384,417.6 258,917.0 48.5% 

The full consolidated cash flow statement is shown on page 105. 


Gross cash flow 

Gross cash flow demonstrates the strength of a company’s operational earnings. However, the 

strong growth of IMMOEAST in recent years has made this indicator less important than earnings 

data for an accurate evaluation of performance. In spite of this fact, it can be noted that gross cash 

flow rose by 155% over the prior year to TEUR 63,361.5 for 2006/07 – an above-average increase 

compared with the growth in revenues. Income taxes paid rose by 691% to TEUR 13,062.8 due to 

the sale of the Europe Tower in Budapest through an asset deal, which did not allow for the (full) 

elimination of tax expense. 

Cash flow from operating activities 

Cash flow from operating activities is based on gross cash flow, and includes the changes in the 

various components of working capital. For the reporting year, cash flow from operating activities 

fell significantly below gross cash flow because of a sharp rise in other receivables. This increase 

was related to amounts due from taxation authorities in various East European countries for input 

VAT as well as recently granted financing. 

Cash flow from investing activities 

Cash flow from investing activities clearly reflects the expansion strategy of IMMOEAST, with an 

increase of 172% from TEUR 799,448.5 in 2005/06 to TEUR 2,174,279.3 for the reporting year. The 

most important positions were the acquisition of property companies for TEUR 732,135.1 and the 

purchase of financial assets for TEUR 544,875.0, whereby the acquisition of a 25% stake in TriGránit 

represents a major component of this item. 

Cash flow from financing activities 

Cash flow from financing activities is comprised primarily of net proceeds of TEUR 2,658,792.3 

from the IMMOEAST capital increase, and also includes the increase in and repayment of financial 

liabilities. 

Financing 

IMMOEAST currently has an equity ratio of 73.2% and gearing of 19.7%. This standing reflects the 

capital increase that was carried out during the 2006/07 financial year. 

Information on the conditions of financial liabilities is provided in the notes to the financial statements 

on page 207ff. 










Growth higher than 

revenues 

Negative cash cash flow from 

operating activities activities due due to 

increase in receivables 

Intensity of expansion 

reflected in plus of 172% 

Capital increase leads to 

improvement in equity ratio


Extension of balance sheet 

and improved risk allocation 

5.3 Asset position 

Consolidated balance sheet 


Property 3,501,914.5 1,586,376.6 120.7% 

Property under construction 242,772.6 85,632.7 183.5% 

Other non-current assets 1,002,787.5 158,487.8 532.7% 

Non-current assets 4,747,474.5 1,830,497.1 159.4% 

Receivables and other assets 1,196,878.6 478,005.0 150.4% 

Property held for sale - 42,847.6 -100.0% 

Inventories 81,694.3 18,375.5 344.6% 

Securities, cash and cash equivalents 702,146.3 317,728.7 121.0% 

Current assets 1,980,719.2 856,956.8 131.1% 

ASSETS 6,728,193.7 2,687,453.9 150.4% 

Equity 4,923,085.8 1,661,954.3 196.2% 

Financial liabilities 957,489.0 614,655.6 55.8% 

Other non-current liabilities 528,817.1 205,365.3 157.5% 

Non-current liabilities 1,486,306.1 820,020.9 81.3% 

Current liabilities 318,801.8 205,478.7 55.2% 

EQUITY AND LIABILITIES 6,728,193.7 2,687,453.9 150.4% 

Non-current assets 

The development of non-current assets reflected the expansion strategy of IMMOEAST during the 

reporting year, rising by 159% or TEUR 2,916,977.5 to TEUR 4,747,474.6. Investments were concentrated 

on the acquisition of investment properties as well as development projects. In addition, the 

group increased its focus on the purchase of strategic investments in development companies such 

as TriGránit and Adama in order to improve the diversification of risk and, at the same time, secure 

access to new projects. 

Current assets 

Current assets rose by TEUR 1,123,762.4 in 2005/06 to TEUR 1,980,719.2 as of 30 April 2007. 

This growth was supported in part by liquid funds remaining from the capital increase that was 

carried out in 2006/07 as well as an increase in receivables due from the parent company to 

TEUR 993.142,2. 

Equity 

The above-mentioned capital increase and improvement in results for the reporting period increased 

equity by TEUR 3,261,131.5. The equity ratio reached 73.2% and asset coverage rose to over 96%.

Non-current liabilities 

Non-current liabilities rose by 81% or TEUR 666,285.2 to TEUR 1,486,306.1, primarily as a result of 

liabilities taken over in connection with the acquisition of companies. Deferred tax liabilities also 

increased by a substantial 153% to TEUR 473,099.1, above all due to the revaluation of assets as 

part of the initial consolidation of acquisitions or the revaluation of properties at year-end. 

Current liabilities 

Current liabilities rose by TEUR 113,323.1 to TEUR 318,801.8. 

Net asset value 


All amounts in TEUR 2006/07 2005/06 

Equity before minority interests 4,907,297.5 1,661,971.7 

Goodwill -180,722.4 

Deferred tax assets -61,089.0 -23,042.5 

Deferred tax liabilities 

Property under 

473,099.1 5,138,585.2 186,946.7 1,825,876.0 

construction (carrying value) 242,772.6 85,632.7 

Property under construction (fair value) 569,107.9 326,335.3 95,387.3 9,754.6 

Inventories (carrying value) 81,694.3 

Inventories (fair value) 

Residual value of forward purchase contracts and 

151,751.6 70,057.3 

investments in other companies carried at cost 41,144.9 

Property held for sale (carrying value) 0.0 42,847.6 

Property held for sale (fair value) 0.0 0.0 54,125.0 11,277.4 

Shares in associated companies (carrying value) 372,468.8 21,574.4 

Shares in associated companies (fair value) 438,102.6 65,633.7 39,979.4 18,404.9 

Net asset value 5,641,756.5 1,865,312.9 

Number of shares (in 1,000) 555,882.8 222,353.1 

Net asset value per share (in EUR) 10.2 8.4 

Net asset value per share rose by 21.4% from EUR 8.4 in the prior year to EUR 10.2 in 2006/07. This 

figure includes the valuation of all development projects, inventories and investments in other companies 

that are not carried at fair value. The increase was supported by two main factors: on the one 

hand, IMMOEAST was able to acquire numerous new development projects that carry a high potential 

for future earnings and, on the other hand, the yield compression on investment properties led 

to significant increases in value. The calculation of net asset value is based on a Best Practices 

Policy Recommendation (6.3) of the European Public Real Estate Association (EPRA). 










Net asset value rises by 21.4% 

to EUR 10.2 per share


Initial calculation 

of NNNAV 

Triple Net Asset Value 

All amounts in TEUR 30 April 2007 

Net asset value (NAV) 5,641,756.5 5,641,756.5 

Deferred taxes (fair value) -8,554.0 -8,554.0 

Triple net asset value (NNNAV) 5,633,202.4 

Number of shares (in 1,000) 555,882.8 

Triple net asset value per share (in EUR) 10.1 

Since IMMOEAST now has inventories that will inevitably result in tax effects when they are sold 

– even after the utilisation of opportunities for the reduction of taxes – triple net asset value was 

calculated for the first time. This calculation is based on the assumption that the full gain on sale 

will be taxed at the current tax rate. 

Net operating income 

Net operating income on an annual basis – derived from let investment properties – is as follows: 

All amounts in TEUR 

Country Fair value NOI (a) Return 

Czech Republic 837,993.2 49,874.8 6.0% 

Slovakia 293,278.9 17,197.9 5.9% 

Hungary 495,474.2 30,400.9 6.1% 

Poland 802,255.8 47,858.7 6.0% 

Total CEE 2,429,002.1 145,332.2 6.0% 

Slovenia 31,329.2 1,973.7 6.3% 

Croatia 45,772.5 2,998.1 6.6% 

Romania 318,475.4 20,567.8 6.5% 

Total SEE 395,577.1 25,539.6 6.5% 

Russia 352,480.7 31,240.8 8.9% 

Total CIS 352,480.7 31,240.8 8.9% 

Total 3,177,059.9 202,112.6 6.4% 

Net operating income is defined as net rental income for the year after the deduction of rental costs 

that cannot be charged to other parties. The returns in the above table represent the weighted 

average discount rate used for the valuation of properties.

The expected net operating income from development projects (excluding inventories) is shown below: 

Development projects, excluding inventories 


Country Construction costs NOI (e) Development yield Fair value yield 

Czech Republic 297,107.73 31,555.38 10.6% 6.1% 

Hungary 537,359.44 49,218.76 9.2% 7.2% 

Poland 229,011.44 20,830.06 9.1% 7.4% 

Slovakia 289,958.12 33,190.26 11.4% 11.2% 

Total CEE 1,353,436.74 134,794.46 10.0% 7.9% 

Romania 1,054,350.56 105,310.33 10.0% 8.1% 

Bulgaria 162,718.93 28,823.52 17.7% 10.9% 

Total SEE 1,217,069.50 134,133.85 11.0% 8.7% 

Russia 619,292.52 58,832.79 9.5% 9.5% 

Ukraine 58,173.05 5,090.14 8.8% 8.8% 

Total CIS 677,465.57 63,922.93 9.4% 9.4% 

Total 3,247,971.80 332,851.24 10.2% 8.5% 

The fair value yield shows the returns on the valuation of properties as of the balance sheet date, 

while the development yield is calculated by dividing NOI (e) by construction costs. 

Transition to the property portfolio 

The property portfolio of the IMMOEAST Group totalled approximately EUR 9 billion as of the balance 

sheet date on 30 April 2007. This value is comprised of the following: 

Property portfolio as of 30 April 2007 

All amounts in EUR million 

Investment properties 3,501.91 

Construction costs for redevelopment/land 613.78 

4,115.69 

Properties under construction 242.77 

Reserves 326.34 

Outstanding construction costs 1,803.02 

2,372.13 

Inventories 81.68 

Reserves 70.06 

Outstanding construction costs 259.48 

411.22 

Construction costs for forward purchases 588.40 

Reserves for forward purchases 

Properties held through investments in other 

41.14 

companies and commitments 1,490.57 

2,120.12 

Total 9,019.16 












Hungary, Poland, 

Czech Republic, Slovakia 

6. Segment Reports 

6.1 Segment CEE 

Overview of properties in the CEE segment 

2006/07 2005/06 Change in % 

Residential properties 

Number of objects 20 11 81.8% 

Letable space in sqm 

Retail properties 

826,860 481,999 71.5% 



Office properties 

1,007,796 549,954 83.3% 



Recreation/hotel properties 

3,672,184 979,895 274.8% 

Number of objects 1 0 - 


Logistics properties 

46,900 0 - 


Letable space in sqm 552,273 448,531 23.1% 

Total number of objects 230 89 158.4% 


Proportional share of letable 

6,106,013 2,460,379 148.2% 

space in sqm 2,552,824 1,187,565 115.0% 

6.1.1. The market environment in CEE 

The CEE segment comprises the Central and East European states of Hungary, the Czech Republic, 

Poland and Slovakia. These four countries, which joined the European Union in 2004, formed the 

first investment targets for IMMOEAST. Their economic development has approached West European 

levels in recent years, even through the pace of growth exceeded the west in 2006: while the 

EU-25 recorded an average increase of 2.9% in GDP for 2006, the comparable value was 8.3% for 

Slovakia and 3.9% for Hungary. A further adjustment in growth rates is forecasted for the coming 

years, above all in Hungary.

6.1.2. Development of business in CEE 

Key data on the CEE Segment 


Revenues in TEUR 142,201.0 65,891.1 115.8% 

EBIT in TEUR 298,432.5 87,674.8 240.4% 

Cash EBIT in TEUR 72,299.0 24,184.0 199.0% 

Segment assets in TEUR 2,960,800.9 1,642,033.4 80.3% 

Segment liabilities in TEUR 1,810,058.0 1,102,442.9 64.2% 

Letable space as a % of the total portfolio 52.2% 84.1% -38.0% 

Fair value in EUR million 4,311.7 1,662.6 159.3% 

Fair value as a % of the total portfolio 47.8% 86.1% -44.5% 

The CEE segment generated an increase of nearly 116% in revenues to TEUR 142,201.0 in 2006/07, 

which represents 74% of the total revenues recorded by IMMOEAST. Investments in this segment 

focus primarily on office properties as well as logistics and commercial objects. EBIT rose by more 

than 240% to TEUR 298,432.5 during the reporting year, supported by a further increase in revaluation 

results. This development was based primarily on Poland and the Czech Republic. The CEE 

segment is responsible for 55% of EBIT in the IMMOEAST Group. An increase of nearly 200% in cash 

EBIT led to an improvement in the cash EBIT margin from 33.1% to 50.8% during 2006/07. 

Recreation/hotel properties 1.4% 

Residential properties 5.9% 

Parking 10.7% 

Logistics properties 12.8% 

Retail properties 26.9% 

42.3% Office properties 

Segment Reports 










74% of revenues from CEE 

Distribution of letable space 

by sector in CEE 

As of 30.4.2007


Developed market at 

West European level 

Second strongest subsegment 

with nearly 700% 

increase in revenues 

6.1.3. Czech Republic 

Country information 

Population in mill. 


10.3 

Real GDP increase in % 6.1 

GDP per capita in EUR 11,010.0 

Inflation in % 2.5 

Source: Eurostat 

The property market in the Czech Republic 

In recent years, certain sectors of the Czech property market have reached levels that are comparable 

with Western Europe. The office market – which is concentrated primarily in the capital city 

of Prague and comprises roughly 2 million sqm – was characterised by an excess supply of new 

space up to 2005. However, a change in market conditions during 2006 led to a mismatch with 

new space of 160,000 sqm facing demand of 190,000 sqm. The result was a decline in vacancies 

to nearly 10%. 

The residential market in the Czech Republic covers approximately 4.5 million units, with more than 

12% located in the capital city. Roughly half the units are owner-occupied and 30% represent rental 

apartments, while the remainder are owned through cooperative housing societies. The steady rise 

in disposable income has triggered a parallel increase in the share of single households and the 

demand for high-quality housing. Consumer spending has also grown, providing added benefits for 

the retail sector. In addition to Prague, numerous shopping malls have developed in the secondary 

population centres. The general acceleration of economic momentum and increasing global business 

connections have also led to an increase in the exchange of goods, which has created additional 

demand for logistics space. 

The development of business in the Czech Republic 

With revenues of TEUR 40,153.4, the Czech Republic represents the second largest subsegment 

of IMMOEAST. The increase of 76.9% in revenues over the prior year resulted from acquisitions in 

Prague and Brno. EBIT rose by more than 700% year-on-year, clearly exceeding the overall development 

of IMMOEAST, and is related to the above-average development of revaluation results. 

Key data on the Czech Republic 



EBIT in TEUR 157,071.0 19,550.8 703.4% 


Fair value in EUR million 1,303.4 470.5 177.0% 

Fair value as a % of the total portfolio 14.5% 24.4% -40.6%




Parking 18.9% 

6.1.4. Hungary 




10.1 



I n f l a t i o n i n % 6 . 6 


23.3% Retail properties 



The property market in Hungary 

The office market in Hungary has roughly 1.8 million sqm of space and a vacancy rate of 14%, which 

is concentrated in older buildings that have not been renovated. The demand for new high-quality 

space has remained consistently high since the country’s accession to the EU in 2004. New rentals 

have risen from 140,000 sqm in 2003 to a current level of 230,000 sqm per year. The supply of new 

space has lagged behind this development to date, but the production of new space and demand 

are expected to equalise in 2007. 

The Hungarian residential market is concentrated in Budapest, where roughly 850,000 units are 

registered as primary residences. A process to privatise state-owned apartments was started during 

the early 1990s after the political transformation, and the share of owner-occupied apartments 

has reached nearly 90%. As a result, the momentum on the rental market is correspondingly low. 

The rising level of incomes has led to the development of new retail space, not only in Budapest but 

also in the prospering provincial cities. The logistics market has shown steady development with 

roughly 1 million sqm, which are concentrated on the autobahn ring surrounding Budapest and have 

a vacancy rate of almost 9%. 

The development of business in Hungary 

Revenues recorded by the Hungary subsegment rose by roughly 55% to TEUR 32,568.4 as a result 

of new acquisitions and the purchase of the remaining shares in IMAK CEE. Revaluation results 

were influenced by the increasing strength of the Forint in comparison with the Euro, which held the 

improvement in EBIT below the growth in revenues at 8.3%. 










Distribution of letable space by 

sector in the Czech Republic 


Office and residential 

market focus on Budapest, 

retail also in in provincial cities 

Revenues increase 55%, 

EBIT influenced by 

foreign exchange factors



by sector in Hungary 


Strong office and 

retail markets 

Key data on Hungary 



EBIT in TEUR 36,310.6 33,521.3 8.3% 

Letable space as a % of the total portfolio 14.7% 25.7% 42.8% 





Parking 4.8% 



6.1.5. Poland 




38.2 



I n f l a t i o n i n % 1 . 4 



The property market in Poland 

In spite of the economic recovery in selected major cities, the office market in Poland is still concentrated 

in the capital city of Warsaw. The office market in this city has a volume of roughly 2.6 

million sqm and is characterised by a significant demand overhang– in 2007 the planned 280,000 

sqm of new space will be contrasted with forecasted demand of roughly 400,000 sqm. The vacancy 

rate has fallen to a recent level of 7%. This situation will lead to an increase in rents, and also bring 

about an adjustment of returns to West European levels. 

Following the privatisation of former state-owned buildings, approximately two-thirds of the Polish 

residential market with its roughly 13 million units is now in private ownership. Forecasts show a 

steady increase in demand in this sector due to the rising level of income and relatively large households 

with a statistical average of 3 persons. The retail trade has also profited from the development 

of incomes and is attracting international sellers – numerous shopping malls in the capital 

city and smaller population centres have been constructed to meet the higher demand for space. 

The strong growth of the economy has also had a favourable impact on the logistics market, which 

remains stable with roughly 3 million sqm of space.

The development of business in Poland 

Poland recorded the highest revenues of all subsegments in the IMMOEAST Group with an increase 

of 212% to TEUR 45,845.3 in 2006/07. This development was supported by major acquisitions such 

as the Mokotow Business Park and Brama Zachodnia as well as the purchase of the remaining 

shares in IMAK CEE. EBIT rose by 45% to TEUR 81,234.3, whereby TEUR 60,746.9 of this total consists 

of revaluation results. 

Key data on Poland 



EBIT in TEUR 81,234.3 56,023.5 45.0% 



Fair value as a % of the total portfolio 12.4% 23.0% 46.1% 



Parking 8.7% 



6.1.6. Slovakia 




5.4 







The property market in Slovakia 

The institutional property market in Slovakia is concentrated in the capital city of Bratislava, the 

only city in the country with a population of more than 400,000. The office market in Bratislava has 

roughly 1 million sqm of space, with production reaching 80,000 sqm and new rentals 70,000 sqm 

in 2006. A comparable situation is expected for 2007, which should hold the vacancy rate stable at 

a level near the current 11%. In spite of a slight increase, top rents remain below the comparable 

values for other capital cities in Eastern Europe at EUR 18/sqm. 










Strongest subsegment with 

plus of 212% in revenues 


by sector in Poland 


Office prices below CEE 

average, opportunities in 

residential residential and and retail sectors


Strong improvement in 

revenues and earnings 


by sector in Slovakia 


Slovakia has a population of 5.4 million and a supply of slightly more than 2 million housing units, 

which translates into an average household size of 2.8 persons. This situation, combined with the 

comparatively low average age of the Slovakian population (approx. 36 years), will lead to a significant 

increase in the demand for housing over the coming years. In the retail sector, development 

steps were initiated several years ago with a focus on Bratislava and the provincial city of Kosice. 

The logistics market is located primarily in the capital city as well as the industrial areas of Zilina 

and Kosice, and has a volume of roughly 440,000 sqm with a steadily declining vacancy rate that 

now equals 8%. 

The development of business in Slovakia 

The growth rates recorded in Slovakia exceed the average for the other countries in this segment 

because of the later market entry. Revenues recorded in Slovakia rose by 216.5% to TEUR 23,633.9 

for the reporting year. EBIT reached a level of TEUR 23,816.7 in 2006/07 after negative results in the 

previous year, whereby approximately one-half of the reporting year figure consists of revaluation 

results. 

Key data on Slovakia 



EBIT in TEUR 23,816.7 -21,420.8 211.2% 


Fair value in EUR million 671.5 285.9 134.9% 



Parking 11.8% 

Retail properties 38.0% 49.9% Office properties

6.2 Segment SEE 

Overview of properties in the SEE segment 






1,383,339 113,427 1,119.6% 

Number of objects 48 1 4,700.0% 



1,787,788 30,100 5,839.5% 




869,581 242,426 258.7% 


Letable space in sqm 466,000 0 - 


Letable space in sqm 4,506,708 385,953 1,067.7% 

Proportional share of letable space in sqm 2,011,043 213,721 841.0% 

6.2.1. The market environment in SEE 

In South-eastern Europe, IMMOEAST is present in Romania, Bulgaria, Slovenia, Serbia and Croatia. 

Slovenia has been a member of the European Union since 2004, and Bulgaria and Romania joined 

in 2007. Economic development in Serbia and Croatia has been partly overshadowed by administrative 

and structural reforms – the growth rate for these five countries equals 5 to 6%, which exceeds 

the European average by a significant margin. 

6.2.2. The development of business in the SEE segment 

Key data on the SEE segment 




EBIT in TEUR 223,150.8 31,804.7 601.6% 

Cash EBIT in TEUR 11,617.7 9,862.7 17.8% 

Segment assets in TEUR 869,069.9 255,699.6 239.9% 

Segment liabilities in TEUR 457,621.8 163,941.9 179.1% 


Fair value in EUR million 3,677.5 240.1 1,431.7% 











Above-average economic 

growth of 5 to 6%


84.1% increase in revenues 

by Romania form 

strongest submarket 


by sector in SEE 


Strong demand in 

all sectors 

Revenues recorded in the SEE segment rose by 84.1% to TEUR 25,992.9 in 2006/07. In Romania, 

the most important submarket, revenues increased 62% to TEUR 22,806.3, while the remaining 

countries generated revenues for the first time. The SEE segment contributed roughly 41% or 

TEUR 223,150.8 to Group EBIT, with Romania and Bulgaria providing the major share of operating 

profit. 


Parking 1.4% 



6.2.3. Romania 




21.6 



I n f l a t i o n i n % 4 . 9 




The property market in Romania 

The demand by international companies for office space has led to the development of a functioning 

office market in the Romanian capital of Bucharest during recent years. The current volume 

totals roughly 850,000 sqm and, despite extensive construction – the production of new space is 

expected to equal 320,000 sqm in 2007 – there is a demand overhang, which has had a positive 

effect on vacancy rates and pre-letting for new projects. However, the growing interest of investors 

has led to a decline in realisable returns and this trend is expected to continue in the future. 

The residential market with its roughly 8 million units is characterised by a high component of substandard 

apartments and an above-average number of persons per household. In combination with 

the rising level of income and the growing availability of mortgage financing for private persons, the 

demand for modern housing is increasing steadily. This strong economic growth also represents an 

important driver for the retail sector, above all in the capital city and the roughly 25 population centres 

with more than 100,000 residents. The logistics market can be described as underdeveloped 

due to a general lack of transportation infrastructure, but activities in this sector should receive 

substantial impulses from projects supported by the EU.

The development of business in Romania 

With an increase of 61.6% in revenues to TEUR 22,806.3, Romania is the largest country market by 

far in the SEE segment. EBIT rose by nearly 303% year-on-year to equal TEUR 128,009.7 in 2006/07, 

supported by a massive increase in revaluation results to TEUR 117,134.2. The most important 

investments made during the 2006/07 financial year were the acquisition of the Polus City shopping 

centre in Cluj, the Polus Center in Constanta and the Victoria Park in Bucharest. 

Key data on Romania 



EBIT in TEUR 128,009.7 31,804.7 302.5% 


Fair value in EUR million 3,247.2 240.1 1,252.4% 



Parking 1.4% 



6.2.4. Bulgaria 




7.8 








The property market in Bulgaria 

The office market in the Bulgarian capital of Sofia comprises approximately 550,000 sqm, of which 

only a small part meets the international A-class standards. In the coming years, the market entry of 

numerous international corporations is expected to trigger a further increase in the existing demand 

overhang. Similar to most of the countries in Eastern and South-eastern Europe, a large share of 

the properties in the Bulgarian residential market is unable to meet the rising demand for quality 

space. The demand for modern housing is growing with the general increase in incomes. There is 

also substantial pent-up demand in the retail sector – not only in Sofia, but also in the ten cities 










Increased investments lead to 

plus of 61.6% 61.6% in revenues and 

a a significant rise in in EBIT 


by sector in Romania 


Strong demand for office, 

retail and residential space


First revenues and high 

revaluation results 

Smaller markets, but selected 

opportunities for investments 

with populations of more than 100,000. Developments in the logistics sector are different, and are 

dependent on the realisation of modern infrastructure projects. 

The development of business in Bulgaria 

The first revenues were recorded in Bulgaria during the 2006/07 financial year, for a total of TEUR 

482.5. EBIT, which is comprised entirely of revaluation results, equalled TEUR 78,643. The most 

important direct investment was the acquisition of a mixed use property in the capital city of Sofia 

with roughly 40,000 sqm of letable space. 

Key data on Bulgaria 

Revenues in TEUR 


482.5 

EBIT in TEUR 78,643.7 

Letable space as a % of the total portfolio 3.7% 

Fair value in EUR million 289.3 

Fair value as a % of the total portfolio 3.2% 

6.2.5. Other SEE markets – Slovenia, Serbia and Croatia 


Slovenia Serbia Croatia 

Population in mill. 2.0 7.5 *) Slovenia Serbia Croatia 

Population in mill. 2.0 7.5 4.4 

Real GDP increase in % 5.2 5.0 4.8 

GDP per capita in EUR 14,810.0 3,000.0 7,700.0 

Inflation in % 3.0 6.6 3.2 

*) 4.4 

Real GDP increase in % 5.2 5.0 4.8 

GDP per capita in EUR 14,810.0 3,000.0 7,700.0 

Inflation in % 3.0 6.6 3.2 

*) excl. Kosovo 


The property markets in Slovenia, Croatia and Serbia 

A number of property submarkets have developed in this region during recent years, parallel to the 

general growth of the economy. The office market is concentrated primarily in the capital cities of 

Belgrade, Zagreb and Ljubljana, and is characterised by a limited number of major projects that 

are being realised by West European investors. The retail sector is well-developed in Croatia and, 

above all in Slovenia, and is considered to be quantifiable due to the size of these countries. On the 

residential market, interesting projects for investors are found primarily in the major cities and the 

attractive costal regions of Croatia and Slovenia. 

The development of business 

IMMOEAST entered the markets in Slovenia, Serbia and Croatia during the 2006/07 financial year. 

Business operations in Serbia focus on the Francuska residential project with roughly 120 apartments. 

Acquisitions made during the reporting year include the Grand Centar in the Croatian capital 

of Zagreb and two specialty shopping centres in the Slovenian cities of Kranj and Nove Mesto.

Key Data 

Slovenia Croatia Serbia 

Revenues in TEUR 1,113.1 1.1 1,589.7 

EBIT in TEUR 9,406.0 -259.0 7,350.3 

Letable space as a % of the total portfolio 1.3 1.1 1.7 

Fair value in EUR million 31.3 14.5 45.8 


6.3 Segment CIS 

Overview of properties in the CIS segment 






292,931 0 - 




487,300 140,500 246.8% 




46,627 26,672 74.8% 


Letable space in sqm 311,058 144,000 116.0% 


Letable space in sqm 1,137,916 181,572 526.7% 

Proportional share of letable space in sqm 327,449 10,990 2,879.5% 

6.3.1. The market environment in CIS 


In the CIS (Community of Independent States) IMMOEAST completed its first direct investments in 

Russia and Ukraine – the two largest countries in Europe based on area – during the 2006/07 financial 

year. These two countries recorded above-average growth of 6 to 7% in spite of rising political 

tensions. Numerous reforms in recent years have led to an improvement in the legal framework, 

which has created greater security for foreign investors. 

6.3.2. Developments in 2006/07 

IMMOEAST recorded its first revenues of TEUR 24,726.6 in the CIS segment during the reporting 

year, which were generated entirely in the subsegment Russia. Positive revaluation results from 

Russia were contrasted with negative EBIT from Ukraine, for net EBIT of TEUR 49,193.9 million. 










Economic growth of 6% to 7% 

Segment revenues generated 

entirely in Russia



by sector in the CIS segment 


Enormous market potential 

and above-average returns 

Key data on the CIS segment 



24,726.6 



Fair value in EUR million 1,029.9 



Parking 6.3% 

Office properties 6.7% 



6.3.3. Russia 




142.4 



I n f l a t i o n i n % 9. 7 



The property market in Russia 

The Russian property market, above all in Moscow, is a highly interesting market for foreign investors 

because of its size and the large range of available opportunities – and despite the higher risk. Initial 

returns total 9%, and exceed the average of other West European cities. The office market in Moscow 

has approximately 5.3 million sqm of space, whereby roughly one-fifth meets western standards. 

The inherent potential of this submarket is also demonstrated by other indicators: the office space 

per resident currently equals 0.5 sqm in Moscow, compared with more than 6 sqm in Vienna and 

1 sqm in Budapest. Demand totalled roughly 1 million sqm in 2006, while the vacancy rate remained 

at a low 3% in spite of massive construction activity. There is enormous pent-up demand in the retail 

sector, which has profited from the growth of the middle class: based on the size of the population, 

Moscow has 0.02 sqm of retail space (Austria: 0.24 sqm). Excellent infrastructure connections (airports, 

inland ports) also give Moscow a special standing on the logistics market. This submarket has 

a volume of nearly 3 million sqm and has virtually no vacancies despite an increase of 40% in space 

during the previous year. Another office market that has drawn the increased interest of international 

investors is developing in St. Petersburg. This second largest city in Russia is rapidly becoming a 

functional regional submarket because of its attractiveness for foreign companies.

Key data on Russia 



22,145.0 


Letable space as a % of the total portfolio 4.5 



The acquisition of the Golden Babylon I and II properties and the 5th Avenue shopping mall in 

Moscow generated revenues of TEUR 22,145.0 in Russia during 2006/07, representing 15% of total 

revenues recorded by IMMOEAST. EBIT equalled TEUR 61,424.0, and was supported by positive 

revaluation results. 

6.3.4. Ukraine 




46.7 





The property market in Ukraine 

Even though Ukraine has five cities with a population of more than one million, the property investment 

market is still located primarily in the capital city of Kiev. With total space of approximately 

620,000 sqm, the office market in Kiev is in an early stage of development. New production reached 

177,000 sqm in 2006, and was met by rising demand and almost no vacancies. Nearly three-fourths 

of all new space was let to international corporations. The property markets in the logistics and 

retail sectors have also started to develop, although with a slight delay. The supply of logistics 

facilities equalled 200,000 sqm in 2006, but is expected to double during 2007. The volume of retail 

space is forecasted to rise from 300,000 sqm to 800,000 sqm by 2009. In Ukraine the space on the 

property market meets international standards in only a limited number of cases. For this reason, 

foreign investors tend to focus primarily on projects that are realised by well – known property 

development companies. Therefore, the investment market has only started its evolution. 

Key data on Ukraine 




0 

EBIT in TEUR -12,230.1 













Three major acquisitions 

acquisitions 

generate revenues of 

TEUR 22,145.0 

Property market in the 

early stage of development


7. Outlook 

The successful conclusion of the capital increase gives IMMOEAST impressive liquidity reserves of 

approximately EUR 3 billion, which will guarantee the implementation of the EUR 6 billion investment 

programme that is planned for 2007/08. Of this total, EUR 2.3 billion were realised by the end 

of June 2007. The property portfolio, including contracted investments, will therefore increase to at 

least EUR 13 billion by the end of April 2008. 

The extensive investments that are planned for the 2007/08 financial year will also lead to a significant 

change in the structure of the IMMOEAST portfolio, both from a geographic and a sector 

standpoint. The focal point of investment activity will move to South-eastern Europe, Russia and 

Ukraine, while the sector diversification will show a shift toward retail properties. The share of 

development projects will also continue to increase, and thereby safeguard the long-term earning 

power of IMMOEAST. 

The high volume of development projects will make an important contribution to the expected 

increase in net asset value per share to EUR 11.50. That represents an increase of approx. 13% in 

the inherent value of the company compared with the 2006/07 financial year. 

Only part of the 2007/08 investment programme will be reflected in the financial statements for that 

year because of the high share of development projects. Roughly two-thirds of these investments 

will begin to generate earnings and cash flow in the following two financial years. However, these 

investments will form a sound basis for the positive and sustainable development of IMMOEAST in 

the future. 

Gross cash flow should reach nearly EUR 100 million for the first time in 2007/08, and revenues will 

exceed EUR 300 million. A further goal is to raise the cash EBIT margin to 40% over the mid-term.

Consolidated 

Financial Statements of 

IMMOEAST AG 

Consolidated balance sheet 102 

Consolidated income statement 103 

Statement of changes in equity 104 

Consolidated cash flow statement 105 


Notes to the financial statements 116 

General principles 116 

Basis of consolidation 118 

Accounting and valuation principles 172 

Notes to the balance sheet 185 

Notes to the income statement 213 

Notes to the cash flow statement 219 


Other information 225 

Group companies 235 

Auditor’s report 242 

Analysis of results 244 

Valuation certificates 257 












Consolidated balance sheet as of 30 April 2007 

with comparison to prior year data 

30 April 2007 30 April 2006 

ASSETS SSETS Notes in TEUR in TEUR 

Investment property (4.1.1) 3,501,914.5 1,586,376.6 

Property under construction (4.1.2) 242,772.6 85,632.7 

Other tangible assets (4.2) 2,157.4 1,693.3 

Intangible assets (4.3) 182,775.1 1,967.8 

Shares in associated companies (4.4) 372,468.8 21,574.4 

Other financial instruments (4.5) 290,274.2 94,089.6 

Receivables and other assets (4.6) 94,022.9 16,120.2 

Deferred tax assets (4.15) 61,089.0 23,042.5 

Non-current assets 4,747,474.5 1,830,497.1 

Receivables and other assets (4.6) 1,196,878.6 478,005.0 

Property held for sale (4.1.3) 0.0 42,847.6 

Inventories (4.8) 81,694.3 18,375.5 

Financial instruments (4.7) 300,000.0 101,966.0 

Cash and cash equivalents 402,146.3 215,762.7 

Current assets 1,980,719.2 856,956.8 

ASSETS 6,728,193.7 2,687,453.9 

EQ EQUIT UITY T AND LIA IABILITIES ILITIES 

Share capital 555,882.8 222,353.1 

Reserves 3,568,029.5 1,219,560.1 

Revaluation reserve 813.1 75.7 

Retained earnings and consolidated profit 738,677.8 204,918.6 

Currency translation adjustment 43,894.2 15,064.2 

4,907,297.5 1,661,971.7 

Minority interests 15,788.4 -17.4 

Equity (4.9) 4,923,085.8 1,661,954.3 

Long-term financial liabilities (4.10) 957,489.0 614,655.6 

Trade accounts payable (4.11) 1,894.8 869.6 

Provisions (4.12) 1,894.8 1,597.5 

Other liabilities (4.13) 51,928.4 15,951.5 

Deferred tax liabilities (4.15) 473,099.1 186,946.7 

Non-current liabilities 1,486,306.1 820,020.9 

Short-term financial liabilities (4.10) 116,139.4 87,641.6 

Trade accounts payable (4.11) 105,086.3 47,823.8 

Provisions (4.12) 12,255.7 9,609.1 

Other liabilities (4.13) 85,320.5 60,404.2 

Current liabilities 318,801.8 205,478.7 

EQUIT UITY TY AND LIA LIABILITIES 

ILITIES 6,728,193.7 2,687,453.9 

The following notes to the consolidated financial statements form an integral part of this consolidated balance sheet.


Consolidated income statement 











Notes 2006/07 in TEUR 2005/06 in TEUR 

Revenues (5.1) 192,920.4 80,014.5 

Revaluation of properties (5.2) 493,095.1 116,986.1 

Other operating income (5.3) 45,724.6 51,334.4 

Depreciation and amortisation (5.4) -43,816.3 -31,868.0 

Expenses related to properties (5.5) -54,272.7 -23,027.9 

Other operating expenses (5.6) -91,214.4 -36,844.1 

Personnel expenses (5.7) -329.8 -24.4 

Cost of goods sold (5.8) -818.2 -301.2 

Operating perating profit ( (EBI BIT) T 541,288.7 156,269.4 

Net financing costs 14,131.8 -1,612.9 

Income/(loss) on financial instruments 89,331.2 29,492.3 

Share of profit/(loss) from associated companies 700.6 -1,203.1 

Financial results (5.9) 104,163.5 26,676.3 

Earnings arnings before tax ( (EBT) T 645,452.2 182,945.7 

Income taxes (5.10) -109,269.1 -37,654.3 

Net profit for the period 536,183.1 145,291.4 

Equity quity holders of the parent company 528,172.7 145,308.4 

Minority inority interests 8,010.4 -17.0 

Earnings arnings per share in EUR UR (8.2) 1.02 0.76 

The he following notes to the consolidated financial statements form an integral part of this consolidated income statement. 

Balance sheet 

Income statement



Statement tatement of changes in equity 

Revalu- Currency 

Share Capital ation Retained translation Minority 

All amounts in TEUR capital reserves reserve earnings adjustment interests Total T 

Balance on 30 April pril 2005 59,294.2 286,559.9 0.0 54,032.9 6,195.5 1,621.6 407,704.1 

Fair value reserve 6,952.6 6,952.6 

Deferred tax assets/ 

liabilities recognised directly in equity -1,738.1 -1,738.1 

Net income recognised directly in equity 5,214.5 5,214.5 

Net profit as of 30 April 2006 145,308.4 -17.0 145,291.4 

Total otal recognised income 

and expense for the period 150,523.0 -17.0 150,506.0 

Capital increase 163,058.9 962,047.7 1,125,106.6 

Cost of capital increase -29,047.5 -29,047.5 

Currency translation adjustment 0.2 9,086.3 -41.0 9,045.5 

Structural changes -1,581.0 -1,581.0 

Change in consolidation method 75.7 75.7 

Changes in shareholders‘ 

equity of associates 362.5 -217.6 145.0 

Balance on 30 April pril 2006 222,353.1 1,219,560.1 75.7 204,918.6 15,064.2 -17.4 1,661,954.3 

Fair value reserve 7,402.1 7,402.1 

Deferred tax assets/ 

liabilities recognised directly in equity -1,850.5 -1,850.5 

Net income recognised directly in equity 5,551.6 5,551.6 

Net profit as of 30 April 2007 528,172.7 8,010.4 536,183.1 

Total otal recognised income 

and expense for the period 533,724.3 8,010.4 541,734.7 

Capital increase 333,529.7 2,418,090.0 2,751,619.6 

Cost of capital increase -69,620.5 -69,620.5 

Currency translation adjustment 28,709.0 385.6 29,094.6 

Structural changes -10.3 10.3 0.0 

Change in consolidation method/ 

additions to consolidation range 737.5 7,399.5 8,136.9 

Changes in shareholders‘ 

equity of associates 45.3 121.0 166.2 

Balance on 30 April pril 2007 555,882.8 3,568,029.5 813.1 738,677.8 43,894.2 15,788.4 4,923,085.8 

The he following notes to the consolidated financial statements form an integral part of this statement of changes in equity.


Consolidated cash flow statement 












Earnings before tax 645,452.2 182,945.7 

Amortisation/reversal of negative goodwill 110,808.4 3,919.8 

Share of profit/(loss) from associated companies -700.6 1,203.1 

Gain/(loss) on the sale of non-current assets -14,009.7 220.4 

Gains on the change in investments 0.0 -3,964.9 

Temporary changes in the fair value of financial instruments -89,080.3 -29,499.8 

Income taxes paid -13,062.8 -1,651.4 

Net financing costs -10,585.0 7,278.7 

Other non-cash income/(expenses) -565,460.7 -135,597.5 

Gross cash flow 63,361.5 24,854.1 

Receivables and other assets -103,242.6 -40,204.3 

Trade accounts payable 35,854.0 18,829.8 

Provisions (excl. tax provisions) -6,790.1 4,581.3 

Other liabilities -110,280.4 -1,277.2 

Cash flow from operating activities -121,097.5 6,783.7 

Acquisition of property -360,266.2 -126,834.8 

Acquisition of property companies less cash and cash equivalents (TEUR 51,391.5, 2005/06: TEUR 20,880.8) -732,135.1 -278,836.2 

Acquisition of other tangible assets -324.1 1,847.4 

Acquisition of intangible assets 0.0 92.0 

Acquisition of financial instruments -544,875.0 -8,990.0 

Granting of short-term financing -657,044.0 -412,534.1 

Proceeds from the sale of current assets 0.0 2,117.6 

Proceeds from the sale of non-current assets 63,053.3 4,136.9 

Proceeds from the sale of financial instruments 2,664.1 6,099.2 

Interest income from financial instruments 54,647.7 13,453.5 

Cash flows from investing activities -2,174,279.3 -799,448.5 

Cash inflows from long-term financing 176,220.8 116,665.7 

Cash inflows from capital increases 2,658,792.3 1,086,376.6 

Cash inflows from changes in investments 6.4 -1,321.4 

Repayment of short-term debt -67,926.0 -2,461.5 

Repayment of long-term debt -67,540.0 -130,673.4 

Interest expense -34,800.6 -12,439.3 

Cash flows from financing activities 2,664,752.7 1,056,146.7 

Differences arising from foreign currency translation 15,041.6 -4,564.9 

Change in cash and cash equivalents 384,417.6 258,917.0 

Cash and cash equivalents at the beginning of the period 317,728.7 58,811.7 

Cash and cash equivalents at the end of the period 702,146.3 317,728.7 

Change in cash and cash equivalents 384,417.6 258,917.0 

The he following notes to the consolidated financial statements form an integral part of this cash flow statement. 

Changes in equity 

Cash flow statement



Segment reporting 

Segmentation by region 

CEE 

Hungary Czech Republic Poland 

All amounts in TEUR 2006/07 2005/06 2006/07 2005/06 2006/07 2005/06 

Offices 11,208.0 8,706.0 19,752.9 7,669.9 15,210.6 4,295.2 

Logistics/commercial 11,864.2 6,263.1 9,862.8 8,491.6 16,458.3 5,606.4 

Residential 0.0 0.0 55.4 55.2 0.0 0.0 

Parking 703.0 430.3 1,424.9 647.0 774.1 207.8 

Rental income 23,775.2 15,399.4 31,096.0 16,863.8 32,443.0 10,109.3 

Sale of inventories 0.0 276.7 0.0 0.0 818.2 0.0 

Operating costs charged to tenants 8,119.7 5,022.2 8,740.0 5,649.2 12,342.9 4,521.1 

Other revenues 673.4 330.7 317.3 190.6 241.2 61.8 

Revenues 32,568.4 21,029.1 40,153.4 22,703.6 45,845.3 14,692.3 

Revaluation of properties 13,596.8 46,637.2 146,145.4 13,015.1 60,746.9 37,890.9 

Other operating income 20,677.3 773.1 796.3 1,282.5 6,899.2 20,983.3 

Depreciation and amortisation -1,024.6 -1,781.5 -12,457.8 -4,648.4 -7,980.1 -4,906.9 

Expenses related to properties -11,701.9 -5,869.7 -11,522.6 -7,572.1 -12,893.7 -4,528.5 

Other operating expenses -17,744.8 -5,936.6 -6,043.7 -5,229.7 -10,477.2 -8,089.0 

Personnel expenses -60.6 0.0 0.0 -0.1 -87.9 -18.6 

Cost of goods sold 0.0 -301.2 0.0 0.0 -818.2 0.0 

Operating profit (EBIT) 36,310.6 54,550.3 157,071.0 19,550.8 81,234.3 56,023.5 

Interest and similar income 3,409.6 709.6 750.8 -319.5 545.5 1,030.7 

Interest and similar expenses -10,365.5 -6,311.2 -14,232.9 -4,951.3 -23,323.9 -7,310.7 

Income/(loss) on financial instruments 9,609.9 -10,388.3 1,545.0 10,378.5 11,905.3 7,785.4 

Share of profit/(loss) from associated companies 0.0 -601.2 -989.8 -601.9 0.0 0.0 

Financial results 2,654.0 -16,591.0 12,926.9 4,505.9 -10,873.1 1,505.4 

Earnings before tax (EBT) 38,964.6 37,959.3 144,144.1 24,056.7 70,361.1 57,528.9 

Thereof share of profit/(loss) from joint ventures 

Thereof share of profit/(loss) from companies 

1,805.1 21,141.9 43,450.1 10,259.5 32,126.8 16,333.9 

consolidated at equity 0.0 -601.2 -989.8 -601.9 0.0 0.0 

Income taxes -4,782.2 -9,199.5 -37,474.4 -9,311.9 -15,392.2 -8,040.6 

Net profit for the period 34,182.4 28,759.9 106,669.7 14,744.8 54,968.9 49,488.3 

Segment assets 602,418.2 466,178.1 1,093,378.4 467,866.0 910,907.8 424,821.5 

Thereof Investment property 495,474.2 361,370.9 933,479.6 390,231.5 821,483.2 375,275.0 

Thereof property under construction 35,114.4 12,236.0 26,905.7 20,179.7 547.0 25,798.1 

Thereof in investments included at equity 0.0 8,228.1 12,508.1 13,342.4 0.0 0.0 

Segment liabilities 308,325.5 292,391.1 594,331.7 296,955.9 656,885.3 289,443.1 

Segment investments 107,050.5 237,042.2 394,717.5 219,377.2 345,917.7 244,495.7 

Thereof Investments in property 61,182.4 164,183.0 388,197.5 217,762.8 312,586.4 235,162.0 

Thereof Investments in property under construction 45,022.1 47,310.3 6,516.3 1,384.0 33,295.9 9,769.0


Report by the Executive Board 107 









SEE 

Slovakia Romania Slovenia Serbia 

2006/07 2005/06 2006/07 2005/06 2006/07 2005/06 2006/07 2005/06 

6,792.4 2,753.9 19,128.2 11,697.1 0.0 0.0 1.2 0.0 

7,279.5 2,404.2 0.0 0.0 961.8 0.0 0.0 0.0 

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 

494.8 95.9 0.0 0.0 0.0 0.0 0.0 0.0 

14,566.7 5,254.0 19,128.2 11,697.1 961.8 0.0 1.2 0.0 

0.0 0.0 0.0 0.3 0.0 0.0 0.0 0.0 

8,170.9 985.8 3,677.9 2,418.2 151.2 0.0 0.0 0.0 

896.3 1,226.4 222.21 0.0 0.0 0.0 0.0 0.0 

23,633.9 7,466.2 22,806.3 14,115.6 1,113.1 0.0 1.2 0.0 

12,257.0 -3,623.9 117,134.2 23,066.8 8,818.7 0.0 0.0 0.0 

968.8 45.4 8,858.9 2,838.5 22.3 0.0 0.1 0.0 

-595.8 -19,261.8 -4,586.5 -1,248.1 0.0 0.0 -138.9 0.0 

-8,049.7 -1,856.5 -6,054.7 -3,201.3 -224.2 0.0 -68.0 0.0 

-4,378.5 -4,189.3 -10,144.8 -3,764.0 -323.9 0.0 -53.4 0.0 

-19.1 -1.0 -3.7 -2.8 0.0 0.0 0.0 0.0 

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 

23,816.7 -21,420.8 128,009.7 31,804.7 9,406.0 0.0 -259.0 0.0 

389.5 31.8 369.0 77.0 1.5 0.0 0.0 0.0 

-9,341.2 -2,383.1 -13,933.0 -5,340.9 -1.7 0.0 -64.0 0.0 

19,275.4 2,079.9 6,833.0 3,661.0 0.0 0.0 44.5 0.0 

135.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 

10,459.7 -271.5 -6,730.9 -1,602.9 -0.2 0.0 -19.5 0.0 

34,276.4 -21,692.3 121,278.8 30,201.8 9,405.8 0.0 -278.5 0.0 

41.7 0.0 29,718.4 -144.7 0.0 0.0 0.0 0.0 

135.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 

-6,594.9 447.0 -13,631.1 -4,580.6 -2,554.0 0.0 14.0 0.0 

27,681.5 -21,245.3 107,647.7 25,621.2 6,851.8 0.0 -264.5 0.0 

354,096.6 283,167.7 669,160.6 255,699.6 34,881.3 0.0 3,533.5 0.0 

293,278.9 241,370.0 425,734.8 218,129.2 31,329.2 0.0 0.0 0.0 

14,836.3 12,186.0 120,386.3 15,233.0 0.0 0.0 0.0 0.0 

4,287.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 

250,515.4 223,652.9 391,210.9 163,941.9 5,315.5 0.0 3,630.8 0.0 

14,040.4 257,478.8 179,549.9 97,301.6 22,510.5 0.0 0.3 0.0 

12,783.7 244,904.0 56,888.3 63,623.4 22,510.5 0.0 0.3 0.0 

1,256.7 12,360.6 122,657.0 33,128.0 0.0 0.0 0.0 0.0



Segment reporting (continued) 

Segmentation by region 

SEE 

All amounts in TEUR Bulgaria Croatia Russia 

2006/07 2005/06 2006/07 2005/06 2006/07 2005/06 

Offices 482.5 0.0 1,478.6 0.0 0.0 0.0 

Logistics/commercial 0.0 0.0 0.0 0.0 22,117.5 0.0 

Residential 0.0 0.0 0.0 0.0 0.0 0.0 

Parking 0.0 0.0 73.0 0.0 27.5 0.0 

Rental income 482.5 0.0 1,551.6 0.0 22,145.0 0.0 

Sale of inventories 0.0 0.0 0.0 0.0 0.0 0.0 

Operating costs charged to tenants 0.0 0.0 10.1 0.0 1,820.8 0.0 

Other revenues 0.0 0.0 28.0 0.0 760.8 0.0 

Revenues 482.5 0.0 1,589.7 0.0 24,726.6 0.0 

Revaluation of properties 78,740.4 0.0 6,208.2 0.0 49,447.4 0.0 

Other operating income 0.3 0.0 0.2 0.0 446.7 0.0 

Depreciation and amortisation -18.7 0.0 -1.8 0.0 -4,441.3 0.0 

Expenses related to properties -84.5 0.0 -432.1 0.0 -3,241.2 0.0 

Other operating expenses -476.3 0.0 -13.9 0.0 -5,374.0 0.0 

Personnel expenses 0.0 0.0 0.0 0.0 -140.2 0.0 

Cost of goods sold 0.0 0.0 0.0 0.0 0.0 0.0 

Operating profit (EBIT) 78,643.7 0.0 7,350.3 0.0 61,424.0 0.0 

Interest and similar income 0.4 0.0 2.1 0.0 57.0 0.0 

Interest and similar expenses -442.3 0.0 -544.8 0.0 -1,993.1 0.0 

Income/(loss) on financial instruments 0.0 0.0 -141.6 0.0 -414.1 0.0 

Share of profit/(loss) from associated companies 0.0 0.0 0.0 0.0 0.0 0.0 

Financial results -441.8 0.0 -684.3 0.0 -2,350.3 0.0 

Earnings before tax (EBT) 78,201.9 0.0 6,666.1 0.0 59,073.8 0.0 

Thereof share of profit/(loss) from joint ventures 

Thereof share of profit/(loss) from companies 

0.0 0.0 0.0 0.0 7,490.4 0.0 

consolidated at equity 0.0 0.0 0.0 0.0 0.0 0.0 

Income taxes -7,822.9 0.0 -1,339.8 0.0 -16,040.5 0.0 

Net profit for the period 70,379.1 0.0 5,326.3 0.0 43,033.3 0.0 

Segment assets 110,848.6 0.0 50,645.9 0.0 461,793.0 0.0 

Thereof property 102,881.3 0.0 45,772.5 0.0 352,480.7 0.0 

Thereof property under construction 0.0 0.0 0.0 0.0 42,222.1 0.0 

Thereof in investments included at equity 0.0 0.0 0.0 0.0 0.0 0.0 

Segment liabilities 25,441.6 0.0 32,023.0 0.0 124,029.1 0.0 

Segment investments 24,140.9 0.0 39,573.4 0.0 350,527.8 0.0 

Thereof property 24,140.9 0.0 39,573.4 0.0 294,078.5 0.0 

Thereof property under construction 0.0 0.0 0.0 0.0 56,191.1 0.0

CIS 


Ukraine Other and Group eliminations IMMOEAST Group 


0.0 0.0 0.0 0.0 74,054.4 35,122.1 

0.0 0.0 0.0 0.0 68,544.1 22,765.3 

0.0 0.0 0.0 0.0 55.4 55.2 

0.0 0.0 0.0 0.0 3,497.3 1,381.0 

0.0 0.0 0.0 0.0 146,151.2 59,323.7 

0.0 0.0 0.0 0.0 818.2 277.0 

0.0 0.0 0.0 0.0 43,033.7 18,596.5 

0.0 0.0 0.0 7.8 2,917.3 1,817.4 

0.0 0.0 0.0 7.8 192,920.4 80,014.5 

0.0 0.0 0.0 0.0 493,095.1 116,986.1 

0.0 0.0 7,054.4 25,411.6 45,724.6 51,334.4 

-12,226.8 0.0 -343.9 -21.3 -43,816.3 -31,868.0 

0.0 0.0 0.00 0.0 -54,272.7 -23,027.9 

-1.7 0.0 -36,084.8 -9,635.5 -91,116.9 -36,844.1 

-1.7 0.0 -114.1 -1.9 -427.3 -24.4 

0.0 0.0 0.00 0.0 -818.2 -301.2 

-12,230.1 0.0 -29,488.6 15.760.8 541,288.7 156,269.4 

0.0 0.0 51,047.7 13,936.1 56,573.2 15,465.7 

-40.5 0.0 31,841.4 9,218.6 -42,441.5 -17,078.6 

0.0 0.0 40,673.8 15,975.7 89,331.2 29,492.3 

0.0 0.0 1,554.4 0.0 700.6 -1,203.1 

-40.5 0.0 125,117.3 39.130.4 104,163.5 26,676.3 

-12,270.7 0.0 95,628.7 54,891.2 645,452.2 182,945.7 

1,471.4 0.0 -14,073.5 5,362.9 102,030.3 52,953.4 

0.0 0.0 1,554.4 0.0 700.6 -1,203.1 

10.9 0.0 -3,662.0 -6,968.7 -109,269.1 -37,654.3 

-12,259.8 0.0 91,966.7 47,922.5 536,183.1 145,291.4 

2,796.1 0.0 2,433,733.8 789,720.9 6,728,193.7 2,687,453.9 

0.0 0.0 0.0 0.0 3,501,914.5 1,586,376.6 

2,760.8 0.0 0.0 0.0 242,772.6 85,632.7 

0.0 0.0 355,673.5 3.8 372,468.8 21,574.4 

1,835.1 0.0 -588,436.0 -240,885.1 1,805,107.9 1,025,499.7 

2,814.0 0.0 18.7 2.2 1,480,861.7 1,055,697.5 

0.0 0.0 0.0 25.203.2 1,211,942.0 950,838.4 

2,814.0 0.0 0.0 0.0 267,753.1 103,951.9 













Transition from segment to Group data 

C E E S E E 

All amounts in TEUR 2006/07 2005/06 2006/07 2005/06 

Offices 52,963.9 23,425.0 21,090.5 11,697.1 

Logistics/commercial 45,464.8 22,765.3 961.8 0.0 

Residential 55.4 55.2 0.0 0.0 

Parking 3,396.8 1,381.0 73.0 0.0 

Rental income 101,881.0 47,626.6 22,125.4 11,697.1 

Sale of inventories 818.2 276.7 0.0 0.3 

Operating costs charged to tenants 37,373.6 16,178.3 3,839.3 2,418.2 

Other revenues 2,128.2 1,809.5 28.2 0.0 

Revenues 142,201.0 65,891.1 25,992.9 14,115.6 

Revaluation of properties 232,746.1 93,919.3 210,901.6 23,066.8 

Other operating income 29,341.7 23,084.3 8,881.8 2,838.5 

Depreciation and amortisation -22,058.4 -30,598.6 -4,746.0 -1,248.1 

Expenses related to properties -44,167.9 -19,826.7 -6,863.5 -3,201.3 

Other operating expenses -38,644.1 -23,444.7 -11,012.3 -3,764.0 

Personnel expenses -167.6 -19.7 -3.7 -2.8 

Cost of goods sold -818.2 -301.2 0.0 0.0 

Operating profit (EBIT) 298,432.5 188,703.8 223,150.8 31,804.7 

Interest and similar income 5,095.4 1,452.6 373.1 77.0 

Interest and similar expenses -57,263.5 -20,956.3 -14,985.7 -5,340.9 

Income/(loss) on financial instruments 42,335.6 9,855.6 6,735.9 3,661.0 

Share of profit/(loss) from associated companies -853.8 -1,203.1 0.0 0.0 

Financial results -10,686.3 -10,851.2 -7,876.7 -1,602.9 

Earnings before tax (EBT) 287,746.2 97,852.6 215,274.1 30,201.8 

Thereof share of profit/(loss) from joint ventures 77,423.7 47,735.2 29,718.4 -144.7 

Thereof share of profit/(loss) from companies consolidated at equity -853.8 -1,203.1 0.0 0.0 

Income taxes -64,243.8 -26,104.9 -25,333.8 -4,580.6 

Net profit for the period 223,502.5 71,747.7 189,940.3 25,621.2 

Segment assets 2,960,800.9 1,642,033.4 869,069.9 255,699.6 

Thereof property 2,543,715.9 1,368,247.4 605,717.9 218,129.2 

Thereof property under construction 77,403.4 70,399.7 120,386.3 15,233.0 

Thereof in investments included at equity 16,795.2 21,570.6 0.0 0.0 

Segment liabilities 1,810,058.0 1,102,442.9 457,621.8 163,941.9 

Segment investments 861,726.1 958,393.7 265,775.0 97,301.6 

Thereof property 774,750.1 862,011.8 143,113.4 63,623.4 

Thereof property under construction 86,090.9 70,823.9 122,657.0 33,128.0


C I S Transition IMMOEAST Group 


0.0 0.0 0.0 0.0 74,054.4 35,122.1 

22,117.5 0.0 0.0 0.0 68,544.2 22,765.3 

0.0 0.0 0.0 0.0 55.4 55.2 

27.5 0.0 0.0 0.0 3,497.3 1,381.0 

22,145.0 0.0 0.0 0.0 146,151.2 59,323.7 

0.0 0.0 0.0 0.0 818.2 277.0 

1,820.8 0.0 0.0 0.0 43,033.7 18,596.5 

760.8 0.0 0.0 7.8 2,917.3 1,817.4 

24,726.6 0.0 0.0 7.8 192,920.4 80,014.5 

49,447.4 0.0 0.0 0.0 493,095.1 116,986.1 

446.7 0.0 7,054.4 25,411.6 45,724.6 51,334.4 

-16,668.0 0.0 -343.9 -21.3 -43,816.3 -31,868.0 

-3,241.2 0.0 0.0 0.0 -54,272.7 -23,027.9 

-5,375.7 0.0 -36,084.8 -9,635.5 -91,116.9 -36,844.1 

-141.9 0.0 -114.1 -1.9 -427.3 -24.4 

0.0 0.0 0.0 0.0 -818.2 -301.2 

49,193.9 0.0 -29,488.6 15,760.8 541,288.7 156,269.4 

57.0 0.0 51,047.7 13,936.1 56,573.2 15,465.7 

-2,033.7 0.0 31,841.4 9,218.6 -42,441.5 -17,078.6 

-414.1 0.0 40,673.8 15,975.7 89,331.2 29,492.3 

0.0 0.0 1,554.4 0.0 700.6 -1,203.1 

-2,390.8 0.0 125,117.3 39,130.4 104,163.5 26,676.3 

46,803.1 0.0 95,628.7 54,891.2 645,452.2 182,945.7 

8,961.7 0.0 -14,073.5 5,362.9 102,030.3 52,953.4 

0.0 0.0 1,554.4 0.0 700.6 -1,203.1 

-16,029.6 0.0 -3,662.0 -6,968.7 -109,269.1 -37,654.3 

30,773.5 0.0 91,966.7 47,922.5 536,183.1 145,291.4 

464,589.0 0.0 2,433,733.8 789,720.9 6,728,193.7 2,687,453.9 

352,480.7 0.0 0.0 0.0 3,501,914.5 1,586,376.6 

44,982.8 0.0 0.0 0.0 242,772.6 85,632.7 

0.0 0.0 355,673.6 3.8 372,468.8 21,574.4 

125,864.2 0.0 -588,436.0 -240,885.1 1,805,107.9 1,025,499.7 

353,341.8 0.0 18.7 2.2 1,480,861.7 1,055,697.5 

294,078.5 0.0 0.0 25,203.2 1,211,942.0 950,838.4 

59,005.2 0.0 0.0 0.0 267,753.1 103,951.9 













Segmentation by sector 

2006/07 2005/06 

All amounts in TEUR Revenues Investments Assets Revenues Investments Assets 

Offices 74,054.4 951,490.3 1,437,435.3 44,318.2 469,165.9 959,998.6 

Logistics/commercial 68,544.1 527,685.9 1,330,476.6 30,453.6 586,315.0 709,785.1 

Residential 55.4 0.3 1,076.0 69.0 0.0 1,494.3 

Parking 3,497.3 0.0 67,884.8 1,844.9 216.5 39,963.4 

Other 46,769.2 1,685.2 907,814.3 3,328.7 0.0 72,105.4 

Total 192,920.4 1,480,861.7 3,744,687.1 80,014.5 1,055,697.5 1,733,232.4 

Shares in associated companies 372,468.6 21,574.4 

Investments in other companies 284,227.3 93,089.3 

Other assets 2,326,810.7 839,557.8 

Total Group assets 6,728,193.7 2,687,453.9




The following table shows the adjustment of operating profit (EBIT) to exclude non-cash components. 

CEE SEE CIS 

All amounts in TEUR 2006/07 2006/07 2006/07 



Depreciation and amortisation 

Gain/loss on the sale of 

22,058.4 4,746.0 16,668.0 

non-current assets -14,026.2 0.0 16.6 

Other non-cash income/(expenses) 163.7 -4,189.9 495.7 

Income taxes paid -1,583.1 -1,187.7 -4,149.0 

Cash EBIT 72,299.0 11,617.7 12,777.9 

Revenues 142,200.9 25,992.9 24,726.6 


Other and Group eliminations IMMOEAST Group 

All amounts in TEUR 2006/07 2006/07 

Operating profit (EBIT) -29,488.5 541,288.7 

Revaluation of properties 0.0 -493,095.1 

Depreciation and amortisation 343.9 43,816.3 

Gain/loss on the sale of non-current assets -0.1 -14,009.7 

Other non-cash income/(expenses) -2,132.6 -5,663.1 

Income taxes paid -33.7 -6,953.5 

Cash EBIT -31,310.9 65,383.6 

Revenues 0.0 192,920.4 

Cash EBIT margin 0.0% 33.9% 













The following table shows the adjustment of operating profit (EBIT) to exclude non-cash components. 

All amounts in TEUR Hungary Czech Republic 

CEE 

Poland 

2006/07 2006/07 2006/07 

Operating profit (EBIT) 36,310.6 157,070.9 81,234.3 


Depreciation and amortisation 1,024.6 12,457.8 7,980.1 

Gain/loss on the sale of non-current assets -14,089.4 8.9 54.3 

Other non-cash income/(expenses) 1,141.0 273.7 -1,312.1 

Income taxes paid -945.2 -279.8 -356.2 

Cash EBIT 9,844.8 23,386.1 26,853.6 

Revenues 32,568.4 40,153.3 45,845.3 


SEE 

Bulgaria Croatia Russia 




Depreciation and amortisation 18.7 1.8 4,441.3 

Gain/loss on the sale of non-current assets 0.0 0.0 16.6 

Other non-cash income/(expenses) -0.3 0.0 389.7 

Income taxes paid -1.9 -0.8 -4,148.1 

Cash EBIT -80.2 1,143.1 12,676.1 

Revenues 482.5 1,589.7 24,726.6 

Cash EBIT margin -16.6% 71.9% 51.3%

CIS 











Slovakia Romania 

SEE 

Slovenia Serbia 

2006/07 2006/07 2006/07 2006/07 

23,816.6 128,009.7 9,406.0 -259.0 

-12,257.0 -117,134.2 -8,818.7 0.0 

595.8 4,586.5 0.0 138.9 

0.0 0.0 0.0 0.0 

61.0 -4,189.6 0.0 0.0 

-1.9 -1,183.6 -0.5 -0.8 

12,214.5 10,088.9 586.7 -120.9 

23,633.9 22,806.3 1,113.1 1.2 

51.7% 44.2% 52.7% -9,801.3% 

Ukraine Other and Group eliminations IMMOEAST Group 


-12,230.1 -29,488.5 541,288.7 

0.0 0.0 -493,095.1 

12,226.8 343.9 43,816.3 

0.0 -0.1 -14,009.7 

106.0 -2,132.6 -5,663.1 

-0.8 -33.7 -6,953.5 

101.8 -31,310.9 65,383.6 

0.0 0.0 192,920.4 

0.0% 0.0% 33.9%


IAS 1.126(a) 

IAS 1.46 

IAS-reg. 

1606/2002 

IAS 1.14 

in connection 

with IFRS 3 

IAS 27.26 

1. General principles 

1.1 Introduction 

IMMOEAST AG (hereafter IMMOEAST) maintains its registered headquarters at A-1010 Vienna, Bankgasse 2. The 

business activities of the IMMOEAST Group include the development and acquisition of properties, above all in Central 

and Eastern Europe, as well as the sale, management and commercial utilisation of properties to optimise asset 

management. 

The company’s share has traded in the standard market segment of the Vienna Stock Exchange since 12 December 

2003 and in the Prime Market Segment since 21 March 2005. 

The consolidated financial statements were prepared in accordance with the International Financial Reporting Standards 

(IFRS) that were valid as of the balance sheet date. IFRS include the new IFRS issued by the International 

Accounting Standards Board (IASB) and International Accounting Standards (IAS) as well as the Interpretations of the 

International Financial Reporting Interpretations Committee (IFRIC) and Standing Interpretations Committee (SIC). 

These consolidated financial statements are based on Regulation (EU) Nr. 1606/2002 of the European Parliament 

and the European Union for the application of international accounting standards (IAS-regulation 1606/2002), which 

require capital market-oriented companies in the European Union to prepare and publish their consolidated financial 

statements for business years that begin on or after 1 January 2005 in accordance with International Financial Reporting 

Standards. Art. 3 Par. 1 of IAS regulation 1606/2002 requires the application of those standards, which were 

adopted into the body of law of the European Union through the procedure set forth in Art 6 Par. 2 of IAS regulation 

1606/2002. The International Financial Reporting Standards adopted by the European Union take effect immediately 

in the member states of the European Union and do not require separate implementation into national law. Valid 

standards in the sense of European Union law cover all International Financial Reporting Standards published in the 

relevant country language. § 245a Par. 1 of the Austrian Commercial Code in the version published in Austrian federal 

gazette BGBl. I 161/2004 requires companies to prepare consolidated financial statements in accordance with 

International Financial Reporting Standards as defined in Art. 4 Par. 1 of IAS regulation 1606/2002. The consolidated 

financial statements prepared in previous years by IMMOEAST in accordance with International Financial Reporting 

Standards were based on the option provided by § 245a Par. 1 of the Austrian Commercial Code, in the version published 

in Austrian federal gazette BGBl. I 1999/49. This option releases a company from the obligation to prepare 

consolidated financial statements pursuant to Austrian commercial law if the company prepares consolidated financial 

statements in accordance with international accounting standards. 

The IASB framework does not represent an integral part of IFRS and, for this reason, was not adopted into the body of 

law of the European Union. However, IAS 8.11 (b) calls for the application of the definitions and recognition criteria for 

assets, liabilities, expenses and income that are anchored in the framework to provide interpretations and fill gaps. 

In keeping with Point 2.1.5 of the (legally nonbinding) commentary on certain sections of IAS regulation 1606/2002 

of the EU, the framework forms a “basis for the formation of judgments on the solution of accounting problems”. For 

this reason and because of the express reference in IAS 8.11 (b), the framework was applied without limitation when 

the consolidated financial statements of IMMOEAST were prepared. 

The annual financial statements of all Austrian and foreign companies included in the consolidated financial statements, 

either through full or proportionate consolidation, were converted to IFRS. In the case of business combinations 

as defined in IFRS 3, the financial statements were revalued, and audited or subjected to a review by independent 

certified public accountants in agreement with International Standards on Auditing (ISA) and the International 

Standards on Review Engagements (ISRE). The accounting and valuation principles used by all companies included 

in the consolidated financial statements were standardised and adjusted to conform to the options elected by 

IMMOEAST. In accordance with IAS 27.26, the balance sheet date for the consolidated financial statements is the 

same as the balance sheet date of the parent company. The annual financial statements of all companies included in 

the consolidation were prepared on the same balance sheet date as the consolidated financial statements.

The principle of fair presentation was observed in preparing the consolidated financial statements. The financial 

position and financial performance as well as cash inflows and cash outflows of the company provide a true and fair 

view of the actual situation and events in all material respects. 

The consolidated financial statements are presented in thousand Euro (“TEUR”, rounded). The use of automatic data 

processing equipment can lead to rounding differences in the addition of rounded amounts or percentage rates. 

1.2 Statement of compliance with IFRS 

The consolidated financial statements prepared by IMMOEAST reflect the full scope of International Financial Reporting 

Standards in their current version, to the extent that these IFRS were adopted by the European Union into the 

European Union body of law in accordance with Art. 6 Par. 2 of IAS regulation 1606/2002 through the special unification 

procedure. In the opinion of IMMOEAST, this does not represent any limitation of the compliance with IFRS that 

is required by IAS 1.14. 

1.3 Overview of applied standards and interpretations 

Given the large number of new standards and the generally permitted early application of these standards, the following 

table provides an overview of the regulations applied by IMMOEAST in preparing the consolidated financial 

statements as of 30 April 2007. 

Standard Application Standard Application Standard/Interpretation Application 

IFRS 1 n.a. IAS 21 (revised 2003) as of 2004/05 IAS 41 n.a. 

IAS 1 up to 2003/04 IAS 21 (revised 2005) as of 2006/07 SIC-7 to IAS 21 n.a. 

IAS 1 (revised 2003) as of 2004/05 IAS 22 **) up to 2003/04 SIC-10 to IAS 20 n.a. 

IAS 1, version IFRS 7 as of 2006/07 IAS 23 as of 2000/01 SIC-12 to IAS 27 n.a. 

IFRS 2 n.a. IAS 24 up to 2003/04 IFRIC adjustment to SIC-12 n.a. 

IAS 2 n.a. IAS 24 (revised 2003) as of 2004/05 SIC-13 to IAS 31 n.a. 

IAS 2 (revised 2003) as of 2004/05 IAS 26 n.a. SIC-15 to IAS 17 as of 2000/01 

IFRS 3 as of 2004/05 IAS 27 up to 2003/04 SIC-21 to IAS 12 n.a. 

IFRS 4 n.a. IAS 27 (revised 2003) as of 2004/05 SIC-25 to IAS 12 n.a. 

IFRS 5 as of 2005/06 IAS 28 up to 2003/04 SIC-27 to IAS 1/17/18 as of 2000/01 

IFRS 6 n.a. IAS 28 (revised 2003) as of 2004/05 SIC-29 to IAS 1 n.a. 

IFRS 7 as of 2006/07 IAS 29 n.a. SIC-31 to IAS 18 n.a. 

IFRS 8 as of 2006/07 IAS 30 n.a. SIC-32 to IAS 38 n.a. 

IAS 7 as of 2000/01 IAS 31 up to 2003/04 IFRIC 1 n.a. 

IAS 8 up to 2003/04 IAS 31 (revised 2003) as of 2004/05 IFRIC 2 n.a. 

IAS 8 (revised 2003) as of 2004/05 IAS 32 up to 2003/04 IFRIC 4 n.a. 


IAS 10 (revised 2003) as of 2004/05 IAS 33 up to 2003/04 IFRIC 6 n.a. 

IAS 11 n.a. IAS 33 (revised 2003) as of 2004/05 IFRIC 7 n.a. 

IAS 12 as of 2000/01 IAS 34 n.a. IFRIC 8 n.a. 

IAS 14 as of 2000/01 IAS 35 n.a. IFRIC 9 n.a. 

IAS 15 *) n.a. IAS 36 up to 2003/04 IFRIC 10 n.a. 


IAS 16 (revised 2003) as of 2005/06 IAS 37 as of 2000/01 

IAS 17 up to 2003/04 IAS 38 up to 2003/04 

IAS 17 (revised 2003) as of 2004/05 IAS 38 (revised 2004) as of 2004/05 

IAS 18 as of 2000/01 IAS 39 up to 2003/04 

IAS 19 as of 2000/01 IAS 39 (revised 2003) ***) as of 2004/05 *) IAS 15 was cancelled without replacement. 

IAS 20 as of 2000/01 IAS 40 as of 2000/01 **) IAS 22 was replaced by IFRS 3. 

IAS 21 up to 2003/04 IAS 40 (revised 2003) as of 2004/05 

***) in the 2006 version. 

n.a. = not applicable 

Notes 










IAS 1.46(d). (e) 

IAS 1.14


IFRS 7.43 

IFRS 7.1 

IFRS 8.1 

IFRS 3.4 

IFRS 3.3 

IFRS 3.1 in 

connection 

with IFRS 

3.14 & 3.16 

1.4 Early application of accounting standards 

IFRS 7 Financial Instruments: Disclosures 

IFRS 7 Financial Instruments: Disclosures was announced by the IASB on 18 August 2005 and adopted without 

change into European law by the EU Commission on 11 January 2006 through regulation (EG) Nr. 108/2006 of the 

Commission of the European Union. The Basis for Conclusions and Guidance on Implementing do not form an integral 

component of IFRS 7 and were not adopted into European law at the EU level in connection with the endorsement 

process. 

IFRS 7 applies to annual periods beginning on or after 1 January 2007. However, earlier application is encouraged. 

This new standard is designed to provide disclosures in financial statements that enable users to evaluate the significance 

of financial instruments for the company’s financial position and performance as well as the nature and 

extent of risks arising from financial instruments to which the entity is exposed during the period and at the reporting 

date, and how management manages these risks. The provisions of IFRS 7 complement the principles for recognising, 

measuring and presenting financial assets and liabilities in IAS 32 Financial Instruments: Presentation and IAS 39 

Financial Instruments: Recognition and Measurement. IFRS 7 must be applied to all recognised and non-recognised 

financial instruments, with the exception of those items listed under IFRS 7.3. 

IFRS 8 Operating Segments 

The IASB issued IFRS 8 Operating Segments, which is part of a joint project with the US Financial Accounting Standards 

Board (FASB) to reduce the differences between IFRS and US-GAAP. IFRS 8 will replace IAS 14 and achieve 

convergence with the requirements of SFAS 131. IFRS 8 requires companies to provide financial and descriptive 

information on their reportable segments. This standard calls for the identification of operating segments based on 

the internal management focus of the company (management approach). In keeping with this approach, the presentation 

of the segments must reflect the same basis used for internal reporting. IFRS 8 applies to annual periods beginning 

on or after 1 January 2009. The early application of IFRS 8 to these consolidated financial statements would lead, 

above all, to additional disclosures in the notes and provide more detailed insight into the financial position and 

performance of the individual segments. 

IFRS 8 had not yet been adopted into the body of European Union law at the time these consolidated financial statements 

were prepared. Reservations were expressed by the European Financial Reporting Advisory Group (EFRAG) in 

connection with the reporting of internal financial information that is not based on IFRS data. Since all data published 

as part of segment reporting are based solely on IFRS and the definition of the segments meets the requirements of 

IAS 14, IMMOEAST assumes these notes converge with the requirements of both IFRS 8 and IAS 14. 

2. Basis of Consolidation 

2.1 Consolidation methods 

A business combination is the bringing together of separate entities or businesses into one reporting entity. IFRS 3 

applies to all business combinations, with the exception of companies under common control and business combinations 

involving mutual entities as well as business combinations based on contracts that do not include the exchange 

of ownership interests or which results in the formation of joint ventures. 

All business combinations that fall under the scope of application defined by IFRS 3 must be recorded using the 

purchase method of accounting. The application of the purchase method includes the identification of the acquirer,

the measurement of the cost of the business combination and the allocation of the cost of the business combination 

to the assets acquired and liabilities and contingent liabilities assumed on the acquisition date. The acquirer is the 

combining entity that obtains control of the other combining entities or businesses. This method calls for the elimination 

of the investment and equity at the acquisition date through the offset of the purchase price with the revalued 

proportional share of net assets in the acquired company. All identifiable assets, liabilities and contingent liabilities 

of the subsidiary are stated at their full fair value, independent of any minority interest. Major exceptions to the 

mandatory recognition of assets and liabilities at fair value include deferred tax assets for deferred tax liabilities as 

well as assets or groups of assets that fall under IFRS 5 Non-current assets held for sale and discontinued operations. 

Intangible assets must be shown separately from goodwill, if their fair value can be reliably determined and 

if they are identifiable. According to IFRS 3.46, this latter criterion is met when the assets are separable from the 

company or result from a contractual or other right. When the purchase method is applied, the acquirer is not permitted 

to create provisions for future losses or expected restructuring expenses that may result from the business 

combination. 

Goodwill is recognised by the acquirer as an asset on the acquisition date and initially measured as the excess of the 

cost of the business combination over the acquirer’s interest in the net fair value of the of the identifiable assets, 

liabilities and contingent liabilities of the acquired entity. If the acquirer’s interest in the fair value of acquired identifiable 

net assets exceeds the cost of the business combination, this difference – negative goodwill – is recognised 

immediately to profit or loss under other operating income after the reassessment of the remeasurement as required 

by IFRS 3.56 (a). 

In accordance with IFRS 3 in connection with IAS 36, capitalised goodwill is no longer amortised on a regular basis, 

but is tested for impairment each year or on an interim basis if there are signs of a loss in value. If the carrying value 

of a cash-generating unit (CGU) to which goodwill has been allocated should fall below its recoverable amount, 

goodwill is reduced by the amount of the difference through an impairment charge. Any remaining difference will be 

reflected in a proportional reduction of the carrying value of the other non-current assets. 

A business combination may involve more than one purchase transaction, e.g. when it occurs in stages by successive 

share purchases. In this case each transaction must be treated separately by the acquirer, whereby the cost of the 

transaction and fair value information at the date of each exchange transaction are used to determine the amount 

of any goodwill associated with that transaction. The shift between the previous minority interest and the offset of 

capital from a step acquisition is shown as a structural change on the statement of changes in equity. For business 

combinations that result in a proportional share of equity below 100%, the increase in minority interest is reported 

as an addition to the consolidation range on the statement of changes in equity. In accordance with the economic 

unity principle that is anchored in IAS 27.4 and IAS 1.68 (o), minority interests are presented as a separate position 

under equity. 

IFRS 3 and IAS 27 do not directly regulate the determination of indirect minority interests. In accordance with the 

economic unity principle, the consolidated financial statements of IMMOEAST include only indirect minority interests 

in the earned equity of consolidated subsidiaries. In keeping with the prevalent opinion expressed in accounting 

literature, indirect minority interests are treated in line with the economic unity principle and not taken into account 

in the consolidation, which is therefore based on the direct stake owned in the subsidiary. This leads to the determination 

of goodwill that is secured through cash outflows and meets the conceptual criteria for complete revaluation 

that are expressed in IFRS 3. 

The financial statements of all companies included in the consolidation are based on the same balance sheet date 

as the parent company. If the balance sheet dates are different, the relevant subsidiaries prepare interim financial 

Notes 










IFRS 3.17 

IFRS 3.36 in 

connection 

with IFRS 3.37 

IFRS 3.37(c) 

IFRS 3.46 

IFRS 3.41 

(a), (b) 

IFRS 3.51 in 

connection 

with IFRS 3.56 

IFRS 3.54 

IFRS 3.58 

IAS 27.4 in 

connection 

with IAS 1.68 

(o) (o) 

IAS 27.26 

IAS 27.27


IAS 27.28 

IAS 27.33 

IFRS 3.62 (a) 

IAS 27.24 

IAS 28.20 in 

connection 

with 28.25 

IAS 31.1 

IAS 31.3 

IAS 31.9 

IAS 31.10 

IAS 31.30 / 

IAS 31.38 

statements – whenever possible – as of the balance sheet date used by the parent company. In no case may the 

balance sheet dates of the parent company and subsidiary differ by more than three months, and adjustments must 

be made for any significant business transactions concluded during this period. In order to develop the consolidated 

financial statements, all necessary financial information from the subsidiaries must be prepared in accordance with 

IFRS. Therefore, uniform Group accounting and valuation methods must be applied to similar business events and 

transactions. 

Minority interests must be reported under equity on the consolidated balance sheet, but shown separately from 

the equity of the parent company. The share of consolidated profit due to minority interests must also be shown 

separately. 

Newly acquired companies are included in the consolidation as of their acquisition date. The conversion of the opening 

balance sheets of major newly acquired companies to IFRS is subject to an audit or review. 

Joint ventures are included at their proportionate share according to the same general principles described above. 

All receivables and liabilities, revenues, other income and expenses from the provision of goods and services between 

fully or proportionately consolidated companies are eliminated. Interim profits, which arise primarily from the transfer 

of stakes in other companies and properties between member companies of the group, are eliminated. 

For associated companies consolidated at equity, the difference resulting from the elimination of the investment and 

equity is determined according to the same general principles used for fully consolidated companies. The carrying 

values of assets and liabilities as well as the amount of revenues and expenses were determined in accordance with 

IAS 28.20 on a uniform basis as required by IFRS. For associated companies with a different balance sheet date, 

interim financial statements were prepared at a balance sheet date within three months from the balance sheet date 

used by IMMOEAST in accordance with IAS 28.25. Major transactions were reflected in a proportional adjustment of 

results included in the consolidated financial statements (also see point 4.4). 

2.2 Consolidation range 

IFRS follow a multi-level approach in the classification of the consolidation range. The assignment to a specific level 

is based on the Group’s influence on the company: the stronger the influence of the Group, the more extensive the 

inclusion in the consolidated financial statements. 

An overview of the IMMOEAST Group companies is presented at the end of the notes. 

2.2.1 Proportionate consolidation 

IAS 31 is applied to the recognition and measurement of all stakes in joint ventures and reporting on the assets, 

liabilities, income and expenses of joint ventures. A joint venture is a contractual agreement whereby two or more 

parties undertake an economic activity that is subject to contractually agreed joint control. The partner companies 

are the shareholders of a joint venture and participate in the joint management of the entity. The form of the contractual 

agreement is determined by the relevant legal regulations. 

IAS 31 allows for the use of the equity method or proportionate consolidation in preparing the consolidated financial 

statements. The selected method must then be applied throughout the Group. IMMOEAST considers the depiction of 

joint ventures through proportionate consolidation to be the more appropriate form of presentation because it makes 

the asset, financial and earnings position more easily understandable for the users of the financial statements.

Proportionate consolidation is a method of accounting whereby the Group’s share of the assets that are jointly controlled 

and the liabilities that are covered by joint responsibility is combined with similar items in the consolidated 

financial statements. The income statement of the joint venture is also included on a proportionate basis in the consolidated 

financial statements. 

In accordance with IAS 31, 89 companies are included in the consolidation using proportionate consolidation. Due to 

the conclusion of syndication agreements with other companies for the joint management of business in accordance 

with IAS 31.3 in connection with IAS 31.9, IMMOEAST does not exercise control over the following companies despite 

its majority holdings or manages these businesses jointly with other partners in spite of its minority interests: 

Segment Country Headquarters Company Stake 

CEE CZ Prague Centrum Olympia Olomuc a.s. 45.00% 

CEE CZ Prague MY BOX Uherske Hradiste s.r.o. 50.50% 

CEE CZ Prague Holtera Property a.s. 45.00% 

CEE CZ Prague MY BOX Strakonice s.r.o. 50.50% 

CEE CZ Znaim Nakupni Centrum Trebic s.r.o. 50.50% 

CEE CZ Znaim Nakupni Centrum AVENTIN Tabor s.r.o. 50.50% 

CEE CZ Prague Veronia Shelf s.r.o. 51.00% 

CEE CZ Prague MY BOX Kolin s.r.o. 50.50% 

CEE CZ Prague Diamant Real s.r.o. 51.00% 

CEE EST Tallinn OÜ Robbins 45.00% 

CEE H Budapest STOP.SHOP. TB Kft. 51.00% 

CEE H Budapest STOP.SHOP. Gyöngy Kft. 51.00% 

CEE H Budapest STOP.SHOP. BCS Kft. 51.00% 

CEE PL Warsaw ImmoPoland Residential I Sp. z o.o. 47.50% 

CEE PL Warsaw Equator Real Sp. z o.o. 51.00% 

CEE PL Warsaw Zenith Real Sp. z o.o. 51.00% 

CEE PL Warsaw Nimbus Real Sp. z o.o. 51.00% 

CEE PL Warsaw Cirrus Real Sp. z o.o. 51.00% 

CEE PL Katowice Silesia Residential Project Sp. z o.o. 70.00% 

CEE PL Warsaw Debowe Tarasy Sp. z o.o. 70.00% 

CEE PL Katowice Debowe Tarasy Sp. z o.o. II sp.k. 70.00% 

CEE PL Katowice Debowe Tarasy Sp. z o.o. III sp.k. 70.00% 

CEE PL Katowice Debowe Tarasy Sp. z o.o. IV sp.k. 70.00% 

CIS UA Kiev Alacor Construction LLC 41.00% 

CIS UA Kiev Alacor Scorta LLC 41.00% 

CIS UA Kiev Alacor City LLC 41.00% 

SEE RO Bucharest S.C. Meteo Business Park s.r.l. 89.00% 

SEE RO Bucharest S.C. Stupul de Albine s.r.l. 89.00% 

SEE RO Bucharest S.C. Union Investitii s.r.l. 25.00% 

Holding CY Nicosia Silesia Residential Holding Limited 70.00% 

Holding CY Nicosia Loberta Holdings Ltd. 51.00% 

Holding CY Nicosia Roches Ventures Ltd. 41.00% 

Holding D Munich Multi-ImmoEast Asset Management GmbH 45.00% 

Holding LU Luxembourg Multi-ImmoEast Central European Property Fund C.V. 45.00% 

Holding LU Luxembourg Multi-IMMOEAST Master Luxembourg Otarfi s.r.l. 45.00% 

Notes 










IAS 31.33 

IAS31.3in 

connection 

connection 

with IAS 31.9


IAS 28.11 

IAS 28.31 

IAS 28.33 

IAS 28.7 

The following tables show the pro rata values for companies that were included in the consolidated financial statements 

at their proportionate share: 

All amounts in TEUR 30 April 2007 30 April 2006 

Property 438,995.4 288,986.4 

Other non-current assets 9,935.0 5,976.3 

Current assets 48,467.7 24,785.6 

Non-current liabilities -253,653.4 -133,840.6 

Current liabilities -101,688.8 -81,155.9 

Proportional share of net assets 142,055.9 104,751.9 


Revenues 10,249.4 13,101.9 

Revaluation 104,214.0 40,114.3 

Operating profit (EBIT) 106,038.3 44,748.9 

Financial results -4,008.0 8,204.5 

Income taxes -22,781.4 -9,042.4 


The above presentation includes effects from the consolidation of liabilities and the elimination of income and 

expenses only when they arose in the proportionately consolidated companies. Funds borrowed from or loaned to 

other Group companies were not eliminated. 

2.2.2 Equity method 

The equity method is used to record shares in associated companies. Under this method the proportionate share of 

changes in equity and the proportionate share of profit or loss recognised by the associated company are transferred to 

the consolidated financial statements, and thereby increase or decrease the carrying amount of the investment. 

The investment in an associated company is recognised at cost on the date of acquisition. The equity method is a 

procedure for the subsequent measurement of the investment. It is based on the same principles as full consolidation, 

however, the assets and liabilities of the associated company are not transferred to the consolidated financial statements, 

but only serve to determine the amount of goodwill. The difference between the revalued assets of the associated 

company and the cost of the investment represent goodwill. This goodwill forms a part of the carrying value of the 

investment. 

Investments in associated companies are tested for impairment in accordance with the requirements of IAS 39 concerning 

indications of impairment and the requirements of IAS 36 concerning the actual impairment test. Goodwill included 

in the carrying amount of an investment in an associated company is not tested separately for impairment. 

Two sub-groups and one company were included in the 2006/07 consolidated financial statements at equity. 

The requirement for application of the equity method is the existence of significant influence. This is usually evidenced 

by one or more of the following factors: 

• Representation of the investor on the board of directors and/or supervisory body or a similar governing body of the 

investee 

• Participation in policy-making processes 

• Material transactions between the investor and the investee 

• Interchange of managerial personnel or 

• Provision of essential technical information.

Potential voting rights are to be considered in determining whether the requirements for significant influence are met. 

The actual exercise of significant influence is not necessary. Significant influence as defined in IAS 28.6 is considered 

to exist when the stake owned in a company equals 20% or more of the voting power, but this presumption can be 

refuted. IMMOEAST holds stakes of more than 20% in the net assets of the following companies, which were not classified 

as associated companies: 

• Prime Property BG REIT, Bulgaria (42.23%) 

• FF&P Russia Real Estate Limited, Guernsey (25.8%) 

• Global Emerging Property Fund L.P., Jersey (25%) 

• FF&P Development Fund (32.895%) 

• Adama Holding Public Ltd. (25%) 

• Bluehouse Accession Property Ltd. (25%) 

• M.O.F. Immobilien AG (20%) 

M.O.F. Immobilien AG was reclassified from associated companies to financial instruments as defined in IAS 39 during 

2006/07 because IMMOEAST no longer has significant influence over this company (also see point 4.5). 

The presumption of association is refuted by the absence of employees or corporate bodies of IMMOEAST on the managing 

bodies of the above companies as well as the quorum of shareholders that is required to pass resolutions. The 

financial statements of companies included at equity are generally prepared as of the same balance sheet date as the 

parent company. The preparation of these statements on a different balance sheet date and the inclusion of any adjustments 

for significant transactions is permitted when the balance sheet date used by the associated company varies by 

three months or less . 

The consolidated financial statements of the EPG Group and TriGránit Holding Ltd. have a balance sheet date of 

31 December 2006. That means the three-month rule is not followed in these cases. However, non-compliance with this 

rule has no material effect on these consolidated financial statements. 

2.2.3 Full consolidation 

A subsidiary is an entity that is controlled by another entity (parent company). Subsidiaries are included in the consolidated 

financial statements through full consolidation. The control concept forms the basis for deciding when a 

company must be classified as a subsidiary. Control is understood to mean the power to govern the financial and 

operating policies of an entity so as to obtain benefits from its activities. The possibility of control is sufficient for 

this classification, while the actual exercise of control is less important. Direct or indirect control over more than 50% 

of the voting rights in an entity is considered to be a refutable presumption for the existence of control. Moreover, 

control is assumed to be irrefutable when the parent company: 

• directly or indirectly controls the majority of voting rights, including potential voting rights that can be exercised or 

converted as of the balance sheet date, 

• holds the power over more than one-half of voting rights by virtue of an agreement (e.g. syndication agreement) 

with other shareholders, 

• has the power to govern the financial and operating policies of the entity under a statute or an agreement, 

• has the power to appoint or dismiss the majority of the members to a governing body (board or directors, supervisory 

board) or to cast the majority of votes on a governing body. 

The inclusion of domestic and foreign subsidiaries in the consolidated financial statements is based on the economic 

unity concept. This concept requires the inclusion of all assets, liabilities, income and expenses attributable 

to subsidiaries in the consolidated financial statements – independent of the stake owned by the controlling parent 

company – in cases where control exists. Equity in the consolidated financial statements is separated into the por- 

Notes 










IAS 28.9 

IAS 28.6 

IAS 28.24-25 

IAS 27.12 

IAS 27.4 

IFRS 3.19 

IAS 27.13


IAS 27.33 

IAS 27.30 

tion attributable to shareholders of the parent company and the portion attributable to the minority shareholders of 

the subsidiaries. The same applies to the consolidated income statement: the income and expenses of the subsidiaries 

are consolidated in full, and profit is then separated into a portion attributable to the parent company and a portion 

attributable to the minority shareholders. All intragroup balances, transactions, income and expenses must be 

eliminated. Minority interests are presented separately in the consolidated balance sheet within equity, but shown 

separately from the equity of the parent company’s shareholders. Minority interests in the profit or loss of the group 

are also reported separately. In addition to IMMOEAST, these consolidated financial statements include 89 domestic 

and 119 foreign subsidiaries in which IMMOEAST directly or indirectly holds the majority of shareholder voting rights 

or can exercise legal or actual control. 

2.2.4 Deconsolidation 

When a subsidiary is sold, the assets and liabilities of this company are no longer included in the consolidated financial 

statements. The income and expenses of the deconsolidated subsidiary are included in the consolidated financial 

statements until the date on which control is lost, and the sold share of profit is treated as a reduction of the 

proceeds from the deconsolidation in order to avoid double-counting. 

The profits accumulated by the deconsolidated subsidiary during its membership in the group influence the proceeds 

from the deconsolidation because these profits were recognised in the consolidated financial statements during 

prior periods. 

In the deconsolidation of foreign subsidiaries, the proceeds from the deconsolidation are increased or decreased 

to reflect the cumulative amount of any exchange differences that were recognised in equity during the subsidiary’s 

membership in the group. 

2.2.5 Transition consolidation (step acquisitions) 

A business combination achieved in stages (transition consolidation or step acquisition) represents the successive 

purchase of shares in subsidiaries through various transactions until control over the company is reached. In accordance 

with IFRS 3.58, goodwill must be determined separately for each exchange transaction based on the relevant 

cost and revalued net assets on the respective transaction dates. The share of undisclosed reserves attributable to the 

previous investment is included under the revaluation reserve, which is to be treated as a revaluation reserve in accordance 

with IAS 16 independent of any other application of the revaluation model defined in IAS 16 by the group. 

When there is a changeover from proportionate to full consolidation, the income statement is included on a proportionate 

basis until control is obtained over the net assets of the company; after this point, the income statement is 

included in full. The share of profit attributable to the joint venture partner up to this point is eliminated as acquired 

capital during the consolidation. 

2.3. Development of the consolidation range 

The consolidation range changed during the reporting year as follows: 

Full Proportionate Equity 

Consolidation range consolidation consolidation method Total 

Balance on 30 April 2006 97 53 4 154 

Newly consolidated 86 61 2 149 

Disposal -2 0 -1 -3 

Change in consolidation method 27 -25 -2 0 

Balance on 30 April 2007 208 89 3 300 

Thereof foreign companies 121 88 3 212

Notes 

IMMOEAST made the following acquisitions and founded the following companies during the reporting year: 

Type of 

Date of initial consolidation 

Segment Country Headquarters Company consolidation Stake method 

CEE CZ Prague MY BOX Strakonice s.r.o. 30.5.2006 50.50% Q 

CEE CZ Prague Aragonit s.r.o. 1.7.2006 100.00% V 

CEE CZ Znaim Nakupni Centrum Trebic s.r.o. 30.8.2006 50.50% Q 

CEE CZ Znaim Nakupni Centrum AVENTIN Tabor s.r.o. 18.9.2006 50.50% Q 

CEE CZ Prague Centrum Opatov a.s. 22.9.2006 100.00% V 

CEE CZ Prague Veronia Shelf s.r.o. 18.10.2006 51.00% Q 

CEE CZ Prague MY BOX Kolin s.r.o. 27.10.2006 50.50% Q 

CEE CZ Prague Diamant Real s.r.o. 31.10.2006 51.00% Q 

CEE CZ Prague WINNIPEGIA SHELF s.r.o. 13.11.2006 100.00% V 

CEE CZ Prague MY BOX Rakovnik s.r.o. 20.11.2006 50.00% Q 

CEE CZ Prague MY BOX Sokolov s.r.o. 20.11.2006 50.00% Q 

CEE CZ Prague MY BOX Hranice s.r.o. 20.11.2006 50.00% Q 

CEE CZ Prague BB C – Building A, k.s. 13.12.2006 100.00% V 

CEE CZ Prague BB C – Building B, k.s. 13.12.2006 100.00% V 

CEE CZ Prague BB C – Building C, k.s. 13.12.2006 100,00% V 

CEE CZ Prague MY BOX Pribram s.r.o. 15.12.2006 50.00% Q 

CEE CZ Prague MY BOX Breclav s.r.o. 12.2.2007 50.00% Q 

CEE CZ Prague MY BOX Jablonec nad Nisou s.r.o. 12.2.2007 50.00% Q 

CEE CZ Brno Centre Investments s.r.o. 28.2.2007 100.00% V 

CEE CZ Brno Brno Estates a.s. 28.2.2007 100.00% V 

CEE CZ Prague Delta Park a.s. 1.3.2007 100.00% V 

CEE H Budapest STOP.SHOP. TB Kft. 8.6.2006 51.00% Q 

CEE H Budapest STOP.SHOP. Gyöngy Kft. 8.6.2006 51.00% Q 

CEE H Budapest STOP.SHOP. BCS Kft. 8.6.2006 51.00% Q 

CEE H Budapest BEWO International Kft. 14.11.2006 50.00% Q 

CEE H Budapest Central Business Center Rt. 15.1.2007 100.00% V 

CEE PL Warsaw Salzburg Center Development S.A 31.7.2006 100.00% V 

CEE PL Warsaw Xantium Sp. z o.o. 4.8.2006 100.00% V 

CEE PL Warsaw Equator Real Sp. z o.o. 28.8.2006 51.00% Q 

CEE PL Warsaw Zenith Real Sp. z o.o. 28.8.2006 51.00% Q 

CEE PL Warsaw Nimbus Real Sp. z o.o. 28.8.2006 51.00% Q 

CEE PL Warsaw Cirrus Real Sp. z o.o. 28.8.2006 51.00% Q 

CEE PL Warsaw IMMOEAST Polonia Sp. z o.o. 6.9.2006 100.00% V 

CEE PL Katowice Silesia Residential Project Sp. z o.o. 9.10.2006 70.00% Q 

CEE PL Warsaw MBP I Sp. z o.o. 1.11.2006 50.00% Q 

CEE PL Warsaw MBP II Sp. z o.o. 1.11.2006 50.00% Q 

CEE PL Warsaw Debowe Tarasy Sp. z o.o. 21.11.2006 70.00% Q 

CEE PL Warsaw Fobos Investment Sp. z o.o. 14.12.2006 50.00% Q 

CEE PL Katowice Debowe Tarasy Sp. z o.o. II sp.k. 5.1.2007 70.00% Q 

CEE PL Katowice Debowe Tarasy Sp. z o.o. III sp.k. 5.1.2007 70.00% Q 

CEE PL Katowice Debowe Tarasy Sp. z o.o. IV sp.k. 5.1.2007 70.00% Q 

CEE PL Warsaw Passat Real Sp. z o.o. 27.3.2007 100.00% V 

CEE SK Bratislava Immoeast Dunaj s.r.o. 14.6.2006 100.00% V 

CEE SK Bratislava TriGránit Centrum a.s. 19.6.2006 25.00% E 

CEE SK Bratislava SCT s.r.o. 21.12.2006 100.00% V 

CEE SK Bratislava STOP.SHOP. Lucenec s.r.o. 19.2.2007 50.00% Q 

CEE SK Bratislava STOP.SHOP. Ruzomberok s.r.o. 19.2.2007 50.00% Q 











Type of 



CEE SK Bratislava STOP.SHOP. Zvolen s.r.o. 19.2.2007 50.00% Q 

CEE SK Bratislava SCP s.r.o. 19.3.2007 50.00% Q 

CIS CY Nicosia Wakelin Promotions Limited 21.6.2006 100.00% V 

CIS RU Moscow Krona Design LLC 21.6.2006 100.00% V 

CIS RU Moscow OAO Kashirskij Dvor-Severyanin 30.10.2006 50.00% Q 

CIS RU Moscow OOO Torgoviy Dom Na Khodinke 30.11.2006 100.00% V 

CIS UA Kiev Alacor Construction LLC 10.1.2007 41.00% Q 

CIS UA Kiev Alacor Scorta LLC 10.1.2007 41.00% Q 

CIS UA Kiev Alacor City LLC 10.1.2007 41.00% Q 

SEE BG Sofia Koral Residence EAD 23.6.2006 100.00% V 

SEE BG Sofia Business Park West-Sofia EAD 12.12.2006 100.00% V 

SEE BIH Banjaluka BEWO d.o.o. Banja Luka 5.3.2007 50.00% Q 

SEE CRO Zagreb Grand Zagreb d.o.o. 30.11.2006 80.00% V 

SEE CRO Zagreb Grand Centar d.o.o. 30.11.2006 80.00% V 

SEE RO Bucharest S.C. Almera New Capital s.r.l. 13.7.2006 50.00% Q 

SEE RO Bucharest S.C. Meteo Business Park s.r.l. 27.7.2006 89.00% Q 

SEE RO Bucharest S.C. Stupul de Albine s.r.l. 27.7.2006 89.00% Q 

SEE RO Bucharest Klyos Media s.r.l. 4.8.2006 90.00% V 

SEE RO Bucharest SC EFG Urban Achizitii s.r.l. 14.12.2006 89.00% V 

SEE RO Cluj SBACARO s.r.l. 15.12.2006 50.00% Q 

SEE RO Ilfov Logistic Contractor s.r.l. 18.12.2006 100.00% V 

SEE RO Cluj FMZ TM s.r.l. 22.12.2006 50.00% Q 

SEE RO Bucharest S.C. Arbor Corporation s.r.l. 29.1.2007 90.00% V 

SEE RO Bucharest S.C. IE Baneasa Project s.r.l. 1.2.2007 100.00% V 

SEE RO Bucharest Eye Shop Targu Jiu s.r.l. 19.2.2007 50.00% Q 

SEE RO Bucharest Log Center Ploiesti s.r.l. 19.2.2007 50.00% Q 

SEE RO Bucharest Log Center Brasov s.r.l. 19.2.2007 50.00% Q 

SEE RO Bucharest IMMOEAST Iride IV Project s.r.l. 1.3.2007 100.00% V 

SEE RO Bucharest S.C. Union Investitii S.r.l. 7.3.2007 25.00% Q 

SEE RO Bucharest S.C. Valero Invest s.r.l. 20.3.2007 100.00% V 

SEE RO Bucharest Log Center Iasi s.r.l. 29.3.2007 50.00% Q 

SEE RO Bucharest Eye Shop Hunedoara s.r.l. 29.3.2007 50.00% Q 

SEE RO Bucharest S.C. Baneasa 6981 s.r.l. 5.4.2007 100.00% V 

SEE SLO Ljubljana Alpha real d.o.o. 30.9.2006 100.00% V 

SEE SLO Ljubljana Beta real d.o.o. 30.9.2006 100.00% V 

SEE SRB Belgrade OCEAN ATLANTIC DORCOL DOO 24.8.2006 80.00% V 

SEE SRB Belgrade Bewo International d.o.o. Beograd 13.4.2007 50.00% Q 

Holding A Vienna IMMOEAST Projekt Tredecimus Holding GmbH 21.6.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Quindecimus Holding GmbH 21.6.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Septendecimus Holding GmbH 21.6.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Quadragesimus Holding GmbH 21.6.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Vicesimus Holding GmbH 21.6.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Sexagesimus Holding GmbH 21.6.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Octogesimus Holding GmbH 21.6.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Nonagesimus Holding GmbH 21.6.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Centesimus Holding GmbH 21.6.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Babekan Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Despina Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Curzio Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Almaria Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Sarastro Holding GmbH 1.8.2006 100.00% V

Holding A Vienna IMMOEAST Projekt Barbarina Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Cherubino Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Marcellina Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Cimarosa Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Fenena Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Almansor Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Roschana Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Cinna Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Annius Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Semos Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Titurel Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Radames Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Montano Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Amfortas Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Abdallo Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Rezia Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Hüon Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Titania Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Andromache Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Polyxene Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Hylas Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Hekuba Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Pantheus Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Chorebe Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Narbal Holding GmbH 1.8.2006 100.00% V 

Holding A Vienna IMMOEAST Projekt Moskau Holding GmbH 7.9.2006 100.00% V 

Holding CY Nicosia TriGránit Holding 31.7.2006 25.00% E 

Holding CY Nicosia Silesia Residential Holding Limited 9.10.2006 70.00% Q 

Holding CY Nicosia Gangaw Investments Limited 30.10.2006 50.00% Q 

Holding CY Limassol Trevima Ltd. 30.11.2006 100.00% V 

Holding CY Nicosia S+B CEE BETA CYPRUS LIMITED 29.12.2006 50.00% Q 

Holding CY Nicosia S+B CEE GAMMA CYPRUS LIMITED 29.12.2006 50.00% Q 

Holding CY Nicosia S+B CEE DELTA CYPRUS LIMITED 29.12.2006 50.00% Q 

Holding CY Nicosia Loberta Holdings Ltd. 10.1.2007 51.00% Q 

Holding CY Nicosia Roches Ventures Ltd. 10.1.2007 41.00% Q 

Holding CY Nicosia Lasuvu Consultants Ltd. 6.3.2007 100.00% V 

Holding CY Nicosia S+B CEE ZETA CYPRUS LIMITED 18.4.2007 50.00% Q 

Holding CY Nicosia S+B CEE EPSILON CYPRUS LIMITED 20.4.2007 50.00% Q 

Holding CY Nicosia S+B CEE ETA CYPRUS LIMITED 20.4.2007 50.00% Q 

Holding LU Luxembourg HEPP III Luxembourg MBP SARL 1.11.2006 50.00% Q 

Holding LU Luxembourg Immoeast Luxembourg 1 SARL 22.3.2007 100.00% V 

Holding LU Luxembourg Immoeast Luxembourg 2 SARL 22.3.2007 100.00% V 

Holding LU Luxembourg Hekuba SARL 28.3.2007 100.00% V 

Holding M Floriana Blue Danube Holding Ltd. 12.12.2006 100.00% V 

Holding NL Amsterdam IMMOEAST Despina III B.V. 9.10.2006 100.00% V 

Holding NL Amsterdam IMMOEAST Despina II B.V. 9.10.2006 100.00% V 

Holding NL Amsterdam IMMOEAST Despina V B.V. 9.10.2006 100.00% V 

Holding NL Amsterdam IMMOEAST Despina IV B.V. 9.10.2006 100.00% V 

Holding NL Amsterdam IMMOEAST Despina I B.V. 9.10.2006 100.00% V 

Holding NL Amsterdam Gordon Invest Netherlands B.V. 22.2.2007 100.00% V 

Holding SWE Stockholm HEPP III Sweden Finance AB 1.11.2006 50.00% Q 

V = Full consolidation. Q = Proprtionate consolidation. E = Equity method 

Notes 

Type of 













2.3.1. Segment Central and Eastern Europe (CEE) 

During the first quarter of 2006/07 IMMOEAST acquired a 25% stake in the TriGránit Group, the leading property 

developer in Central and Eastern Europe, through TriGránit Holding Limited. This investment gives IMMOEAST a holding 

in the TriGránit portfolio as well as pre-emptive rights to all TriGránit projects at market prices. 

2.3.1.1. Regional subsegment Poland 

2.3.1.1.1. Salzburg Center Development S.A. 

IMMOEAST acquired 100% of the shares in the Polish Salzburg Center Development S.A. as of 31 July 2006. This 

company owns a noffice building on the southwest border of the so-called “Central Business District” in Warsaw. 

The following table shows the acquired assets and liabilities at fair value as well as the consolidated proportional 

share of net assets at the individual company level as of the balance sheet date and the income statement of the 

company for the period from the acquisition date to the balance sheet date, which is included in the consolidated 

financial statements: 

Segment CEE All amounts in TEUR 30 April 2007 

Location of property Poland Property 34,606.0 

Company Salzburg Center Development S.A. Other non-current assets 190.5 

Date of initial consolidation 31 July 2006 

Current assets 2,659.1 


Cash and cash equivalents 

Receivables and other assets 

107.1 

2,585.7 



Proportional share of net assets 

-3,821.8 

-106.9 

33,526.9 

Deferred tax assets 64.1 

All amounts in TEUR 2006/07 

Property 20,824.8 

Revenues 6.8 

Trade accounts payable -912.7 

Revaluation 13,312.5 

Other liabilities -16,786.4 

Operating profit (EBIT) 17,720.3 

Deferred tax liabilities -1,174.0 

Financial results 108.9 

Currency translation adjustment 7.5 

Income taxes -2,477.5 

Acquired net assets 4,716.1 

Net profit for the period 15,351.7 

(Negative) goodwill -4,979.1 

Purchase price paid in cash -263.0 

Less cash and cash equivalents acquired -107.1 

Net purchase price for property company -370.2 

2.3.1.1.2 Xantium Sp.z o.o. 

During the second quarter of 2006/07 IMMOEAST acquired 100% of the shares in the Polish Xantium Sp.z o.o., which 

purchased the Brama Zachodnia office building through an asset deal. The project building is situated near the construction 

site of the Equator Office in the Jerozolimskie Business Corridor, the most dynamic office district in Warsaw. 

A number of shopping centres (Reduta, Blue City) are also located nearby. Brama Zachodnia is a modern 14-storey 

office complex that includes offices and a conference room as well as a restaurant and building services rooms. The 

object is fully let, primarily to well-known international corporations such as Ericsson.

The following table shows the consolidated proportional share of net assets at the individual company level as of the 

balance sheet date and the income statement of the company for the period from the acquisition date to the balance 

sheet date, which is included in the consolidated financial statements: 

Segment CEE 

Location of property Poland 

Company Xantium Sp. z o.o. 

Date of initial consolidation 4.8.2006 



Other non-current assets 586.6 


Non-current liabilities -957.2 

Current liabilities -380.6 

Proportional share of net assets 101,242.4 


Revenues 2,993.8 

Revaluation 719.8 


Financial results -1,374.0 

Income taxes -327.8 


2.3.1.1.3 Equator Real Sp. z o.o., Zenith Real Sp. z o.o., Nimbus Real Sp. z o.o. and Cirrus Real Sp. z o.o. 

A 51% stake was acquired in each of four Polish companies as of 28 August 2006: Equator Real Sp.z o.o., Zenith Real 

Sp. z o.o., Nimbus Real Sp. z o.o. and Cirrus Real Sp.z o.o. This project involves the construction of four office buildings 

in the most dynamic commercial district of the Polish capital. It will be managed by a joint venture that includes 

a well-known international property developer with significant experience in Warsaw. 


share of net assets at the individual company level as of the balance sheet date and the income statements of the 

companies for the period from the acquisition date to the balance sheet date, which are included in the consolidated 


Segment CEE 


Equator Real Zenith Real. Nimbus Real Cirrus Real 

Company Sp. z o.o. Sp. z o.o Sp. z o.o Sp. z o.o 

Date of initial consolidation 28.8.2006 28.8.2006 28.8.2006 28.8.2006 


Cash and cash equivalents 7.7 2.5 6.3 6.3 

Receivables and other assets 28.5 16.3 13.8 13.8 

Deferred tax assets 1.6 0.0 0.0 0.0 

Property 1,048.5 1,048.5 1,048.5 1,048.5 

Financial liabilities -931.0 -639.9 -607.2 -610.6 

Trade accounts payable -18.1 -19.9 -17.5 -17.8 

Other liabilities -133.4 -134.7 -104.8 -105.2 

Deferred tax liabilities -43.8 -99.4 -106.0 -105.2 

Currency translation adjustment -59.7 -56.3 -56.2 -56.2 

Acquired net assets -99.6 117.1 177.0 173.6 

(Negative) goodwill 2,234.8 1,899.2 1,833.0 1,836.3 

Purchase price paid in cash 2,135.2 2,016.3 2,009.9 2,009.9 

Less cash and cash equivalents acquired -7.7 -2.5 -6.3 -6.3 

Net purchase price for property company 2,127.4 2,013.9 2,003.6 2,003.6 

Notes 











Segment CEE 


Equator Real Zenith Real. Nimbus Real Cirrus Real 

Company Sp. z o.o. Sp. z o.o Sp. z o.o Sp. z o.o 

Date of initial consolidation 28.8.2006 28.8.2006 28.8.2006 28.8.2006 


Property 4,311.8 3,451.4 6,251.5 3,321.1 

Other non-current assets 357.5 573.0 1,112.3 552.9 

Current assets 399.9 33.6 36.1 35.8 

Non-current liabilities -3,286.2 -1,273.6 -1,774.6 -1,220.3 

Current liabilities -22.8 -2.8 -3.0 -2.7 

Proportional share of net assets 1,760.3 2,781.6 5,622.3 2,686.8 


Revenues 0.0 0.0 0.0 0.0 

Revaluation 1,574.0 2,360.6 5,126.5 2,232.0 

Operating profit (EBIT) -370.0 1,003.9 4,369.7 921.3 

Financial results 83.2 -23.1 -21.7 -21.5 

Income taxes -301.3 -439.6 -964.2 -416.2 

Net profit for the period -588.2 541.2 3,383.8 483.7 

2.3.1.1.4 Silesia Residential Holding Limited 

As of 9 October 2006 IMMOEAST purchased a 70% stake in the Cypriote Silesia Residential Holding Limited and, 

through the transaction, also acquired a 70% stake in this company’s Polish subsidiary Silesia Residential Sp.z o.o. 

The Debowe Tarasy – Silesia City Center Residential development project involves the construction of 980 apartments 

in four phases. The site has optimal transport connections and a good infrastructure, which also includes a 

recreation area with sports facilities north of the project location. Construction will take 13 months. 




financial statements:

Segment CEE 


Silesia Residential Silesia Residential Debowe Tarasy Debowe Tarasy Debowe Tarasy Debowe Tarasy 

Company Holding Limited Project Sp. z o.o. Sp. z o.o. Sp. z o.o. II sp.k. Sp. z o.o. III sp.k. Sp. z o.o. IV sp.k. 

Date of initial consolidation 9.10.2006 9.10.2006 21.11.2006 5.1.2007 5.1.2007 5.1.2007 


Cash and cash equivalents 0.0 236.5 0.0 0.0 0.0 0.0 

Financial instruments 1,668.1 0.0 0.0 0.0 0.0 0.0 

Receivables and other assets 1.2 5,990.3 0.0 0.0 0.0 0.0 

Deferred tax assets 0.0 35.7 0.0 0.0 0.0 0.0 

Financial liabilities 0.0 -934.0 0.0 0.0 0.0 0.0 

Trade accounts payable 0.0 -666.8 0.0 0.0 0.0 0.0 

Other liabilities -53.2 -223.4 0.0 0.0 0.0 0.0 

Provisions 0.0 -3.3 0.0 0.0 0.0 0.0 

Deferred tax liabilities 0.0 -547.7 0.0 0.0 0.0 0.0 

Currency translation adjustment 25.4 -109.2 0.3 0.0 0.0 0.0 

Acquired net assets 1,641.5 3,778.2 0.3 0.0 0.0 0.0 

(Negative) goodwill 1,905.3 1.8 0.0 0.0 0.0 0.0 

Purchase price paid in cash 3,546.8 3,780.0 0.3 0.0 0.0 0.0 

Less cash and cash equivalents acquired 0.0 -236.5 0.0 0.0 0.0 0.0 

Net purchase price for project company 3,546.8 4,561.2 0.3 0.0 0.0 0.0 


Property 0.0 0.0 0.0 0.0 0.0 0.0 

Other non-current assets 1,894.5 86.6 0.5 5.4 0.3 0.3 

Current assets 26.1 11,932.0 13.6 1,409.0 388.0 384.0 

Non-current liabilities -24.9 -3,062.2 -7.8 -677.7 0.0 0.0 

Current liabilities 0.0 -6,573.5 -3.5 -183.9 -1.8 -1.8 

Proportional share of net assets 1,895.8 2,382.9 2.9 552.8 386.6 382.6 


Revenues 0.0 818.2 0.0 0.0 0.0 0.0 

Revaluation 0.0 0.0 0.0 0.0 0.0 0.0 

Operating profit (EBIT) -4.0 -291.9 -3.4 -28.2 -1.7 -2.6 

Financial results -1.6 43.4 0.0 -0.2 0.0 0.0 

Income taxes 0.0 45.2 0.5 5.3 0.3 0.3 

Net profit for the period -5.6 -203.3 -2.9 -23.1 -1.4 -2.3 

2.3.1.1.5 MBP I Sp. z o.o. and MBP II Sp. z o.o. 

During the third quarter of 2006/07 IMMOEAST completed its largest investment in Poland to date in the form of a 

joint investment with Heitman European Property Partners. The acquisition of 50% stakes in the Polish MBP I Sp. z 

o.o. and MBP II Sp. z o.o. transferred the Mokotow Business Park to the Company’s portfolio. The Mokotow Business 

Park comprises nine office towers and is one of the most successful office projects in Warsaw. 

Notes 














Segment CEE All amounts in TEUR 2006/07 

Location of property Poland Revenues 4,173.2 1.5 

Company MBP I Sp. z o.o. MBP II Sp. z o.o. Revaluation 16,837.8 -981.8 

Date of initial consolidation 1.11.2006 1.11.2006 

Operating profit (EBIT) 19,054.6 -1,007.8 


Property 

Other non-current assets 

127,942.0 

1,425.6 

30 April 2007 

0.0 

198.8 


Income taxes 

Net profit for the period 

-958.4 

-3,557.9 

14,538.2 

-63.1 

196.4 

-874.5 

Current assets 3,992.6 976.7 

Non-current liabilities -74,892.0 0.0 

Current liabilities -1,292.9 -1.3 


2.3.1.1.6 Fobos Investment Sp. z o.o. 

The Rondo Jazdy Polskiej, a further joint venture project in Warsaw, was acquired by the Polish Fobos Investment 

Sp. z o.o as of 29 December 2006. The company owns an office development project that is located in the centre of 

Warsaw. 




Segment CEE 


Company Fobos Investment Sp. z o.o. 



Property 547.0 


Current assets 116.8 



Proportional share of net assets 621.5 


Revenues 0.0 


Operating profit (EBIT) -5.8 

Financial results -25.6 

Income taxes 3.0 

Net profit for the period -28.4

2.3.1.1.7 Passat Real Sp. z o.o. 

The Passat Office Building in Warsaw, a standing investment was acquired as of 29 March 2007 through the purchase 

of 100% of the shares in the Polish Passat Real Sp. z o.o. The Passat Office Building is a modern office property that 

is located adjacent to the Mistral Office Building owned by IMMOEAST. The object has an excellent location, with 

easy access via public transportation. Both the city centre of Warsaw and the international airport can be reached 

in 10 minutes. 





Segment CEE 


Company Passat Real Sp. z o.o. 

Date of initial consolidation 27.3.2007 


Cash and cash equivalents 69.5 

Receivables and other assets 205.3 



Financial liabilities -12,616.1 



Provisions -14.6 


Currency translation adjustment -158.3 


(Negative) goodwill 2,945.9 

Purchase price paid in cash 14,203.8 

Less cash and cash equivalents acquired -69.5 

Net purchase price for property company 14,134.4 

2.3.1.2RegionalsubsegmentSlovakia 



Other non-current assets 2,992.0 


Non-current liabilities -15,431.2 




Revenues 17.4 





Net profit for the period 104.6 

2.3.1.2.1 TriGránit Centrum a.s. 

As of 9 June 2006 IMMOEAST acquired a 25% stake in the Slovakian TriGránit Centrum a.s., which is developing the 

Lakeside project in Bratislava. This investment is classified as an associated company. 

2.3.1.2.2 SCT s.r.o. 

The Slovakian SCT s.r.o. was fully consolidated by IMMOEAST as of 21 December 2006. This company owns the 

Arkadia shopping centre, which is located on the eastern border of Trnava near a densely populated residential area. 





Notes 











Segment CEE All amounts in TEUR 30 April 2007 

Location of property Slovakia Property 15,204.0 

Company SCT s.r.o. 







309.6 

444.9 




-6,060.9 

-477.7 

10,704.0 

Deferred tax assets 

Property 

Financial liabilities 

Trade accounts payable 

Other liabilities 

Provisions 


Currency translation adjustment 

17.4 

11,724.1 

-4,335.8 

-224.3 

-95.1 

-0.8 

-1,169.1 

218.1 


Revenues 

Revaluation 



Income taxes 

Net profit for the period 


428.8 

2,695.7 

2,902.6 

33.1 

-557.9 

2,377.8 






2.3.1.3 Regional subsegment Czech Republic 

2.3.1.3.1 Aragonit s.r.o. 

The Czech Aragonit s.r.o. was acquired in full as of 1 July 2006, which added the Skofin Office Building in Prague 

to the IMMOEAST portfolio. As of 30 May 2006 a 50.50% stake was acquired in My Box Straconice s.r.o., a project 

company in the Czech Republic. 





Segment CEE 

Location of property Czech Republic 

Company Aragonit s.r.o. 








Other liabilities -29.4 

















Revenues 901.5 





Net profit for the period 3,220.6

2.3.1.3.2 Diamant Real s.r.o. 

The Czech Diamant Real s.r.o. was fully consolidated by IMMOEAST as of 31 October 2006. This transaction led to the 

purchase of one of the larger modern office properties (“Diamond Point”) in the capital city of Prague. In addition, 

49% of the shares in Veronia Shelf s.r.o., the parent company of Diamant Real s.r.o., were sold to the joint venture 

partner Allianz projštovna, a.s. as of 30 November 2006. 





Segment CEE 


Company Diamant Real s.r.o. 









Other liabilities -173.5 













Current liabilities -1,389.6 



Revenues 1,021.1 






2.3.1.3.3 WINNIPEGIA SHELF s.r.o. 

As of 13 November 2006 IMMOEAST acquired 100% of the shares in the Czech WINNIPEGIA SHELF s.r.o. and, from 

this company, the Grand Pardubice shopping centre. This property is located only several minutes from the historical 

old city and castle in Pardubice, and is comprised of two connected building complexes. 





Segment CEE 


Company WINNIPEGIA SHELF s.r.o. 






Non-current liabilities -2,070.5 



Notes 


















2.3.1.3.4 Building A k.s., Building B k.s. and Building C k.s. 

During the third quarter of 2006/07 IMMOEAST concluded its largest investment to date on the Czech office market. 

As of 13 December 2006 the Company acquired 100% of the shares in Building A k.s., Building B k.s. and Building 

C k.s., which led to the takeover of three objects in the BB Centrum office park. All three properties are fully let to 

well-known companies, in particular subsidiaries of foreign corporations. 





Segment CEE 


Company BB C – Building A, k.s. BB C – Building B, k.s. BB C – Building C, k.s. 

Date of initial consolidation 13.12.2006 13.12.2006 13.12.2006 


Cash and cash equivalents 5,512.3 2,213.3 513.7 

Receivables and other assets 1,217.0 1,403.1 1,680.8 

Deferred tax assets 136.4 243.9 0.0 

Property 64,335.5 53,610.8 40,132.8 

Financial liabilities -31,570.0 -20,147.1 0.0 

Trade accounts payable -53.2 -1,153.4 -203.7 

Other liabilities -2,619.0 -871.1 -19,273.7 

Provisions -65.5 -85.4 -116.6 

Deferred tax liabilities -9,316.9 -8,715.1 -5,912.4 

Currency translation adjustment 515.8 491.1 319.6 

Acquired net assets 28,092.4 26,990.1 17,140.5 

(Negative) goodwill 9,155.5 8,470.4 5,938.8 

Purchase price paid in cash 37,247.9 35,460.5 23,079.3 

Less cash and cash equivalents acquired -5,512.3 -2,213.3 -513.7 

Net purchase price for property company 31,735.5 33,247.2 22,565.6 


Property 71,243.3 43,637.4 60,905.9 

Other non-current assets 9,424.4 6,642.2 5,976.5 

Current assets 2,244.8 1,954.4 1,971.7 

Non-current liabilities -43,434.0 -26,687.2 -26,768.1 

Current liabilities -1,489.6 -2,128.8 -1,373.4 

Proportional share of net assets 37,989.0 23,418.0 40,712.7 


Revenues 1,595.9 1,753.2 1,353.9 

Revaluation 6,533.6 -10,202.6 20,410.2 

Operating profit (EBIT) 7,906.9 -11,483.6 21,170.8 

Financial results -833.6 -383.5 -493.5 

Income taxes -1,528.3 2,490.4 -4,875.0 

Net profit for the period 5,545.0 -9,376.7 15,802.4 

2.3.1.3.5 Centre Investments s.r.o., Delta Park a.s. and Brno Estates a.s. 

IMMOEAST acquired 100% of the shares in the Czech Centre Investments s.r.o., Delta Park a.s. and Brno Estates a.s. 

as part of a uniform transaction during the fourth quarter of 2006/07. This portfolio comprises four standing investments 

and two forward purchases: Jungmannova Plaza, a class A office property that is located in the historical city

centre of Prague, is almost fully let and has international tenants; Sylva Taroucca, a historical building on the Graben 

in Prague that is fully occupied; OC Petrov: an object located in the centre of Brno that is also almost fully let; Brno 

Business Park – Phase 1: an office complex in Brno that is comprised of two buildings; Brno Business Park – Phase 2: 

this class A office development project in Brno also comprises two buildings and represents an extension to the 

existing Brno Business Park – Phase 1 project; Letna Galeria: this shopping and business centre in Prague 7 is a 

development project that has received district approval. 





Segment CEE 


Company Centre Investments s.r.o. Brno Estates a.s. Delta Park a.s. 

Date of initial consolidation 28.2.2007 28.2.2007 1.3.2007 


Cash and cash equivalents 557.0 1,211.8 84.9 

Receivables and other assets 456.3 686.6 584.6 


Property 16,191.0 56,955.4 47,680.4 

Financial liabilities -3,699.1 -18,895.0 -13,759.9 

Trade accounts payable -33.4 -1,889.2 -177.4 

Other liabilities -360.1 -272.7 -7,405.8 

Provisions -100.1 0.0 0.0 

Deferred tax liabilities -3,148.0 -9,334.3 -6,858.0 

Currency translation adjustment -12.1 -41.9 44.9 

Acquired net assets 10,538.3 28,735.9 20,407.5 

(Negative) goodwill 4,042.3 21,683.5 6,899.9 

Purchase price paid in cash 14,580.6 50,419.4 27,307.4 

Less cash and cash equivalents acquired -557.0 -1,211.8 -84.9 

Net purchase price for property company 14,023.7 49,207.6 27,222.4 


Property 17,114.6 79,028.2 44,949.8 

Other non-current assets 3,387.7 14,707.0 6,523.0 

Current assets 1,663.9 2,271.2 1,042.1 

Non-current liabilities -6,938.3 -30,619.8 -19,273.9 

Current liabilities -541.0 -927.1 -2,108.8 



Revenues 138.8 200.8 443.4 

Revaluation 833.7 20,241.3 -2,983.2 

Operating profit (EBIT) 161.1 12,715.8 -3,448.3 

Financial results -12.4 -77.1 -167.5 

Income taxes -192.1 -4,838.4 700.6 

Net profit for the period -43.3 7,800.3 -2,915.2 

Notes 











2.3.1.4 Regional subsegment Hungary 

2.3.1.4.1 Central Business Center Rt. 

Central Business Center Rt., a Hungarian project 

company, was fully consolidated by IMMOEAST as 

of 10 January 2007. The company owns the Central 

Business Center in Budapest, which is located on 

the Buda-side of the city near the Margit Bridge. 

The following table shows the acquired assets and 

liabilities at fair value as well as the consolidated 

proportional share of net assets at the individual 

company level as of the balance sheet date and 

the income statement of the company for the period 

from the acquisition date to the balance sheet 

date, which is included in the consolidated financial 

statements: 

2.3.2 Segment Community of Independent States (CIS) 

2.3.2.1 Regional subsegment Russia 

Segment CEE 

Location of property Hungary 

Company Central Business Center Rt. 



Cash and cash equivalents 1,077.2 











Less cash and cash equivalents acquired -1,077.2 











Revaluation -905.4 

Operating profit (EBIT) -1,298.0 



Net profit for the period -1,092.0 

2.3.2.1.1WakelinPromotionsLimitedandKronaDesignLLC 

As of 21 June 2006 IMMOEAST acquired 100% of the shares in the Cypriote Wakelin Promotions Limited, which has 

an office in Russia, and the Russian Krona Design LLC. These companies own two shopping centres in Moscow: 

Golden Babylon I and Golden Babylon II. Golden Babylon I, the larger of the two objects, is fully rented to attractive 

tenants from the foodstuffs and electronics branches. Golden Babylon II was completed in August 2006 and is also 

fully let.





Segment CIS 

Location of property Russia 

Company Wakelin Promotions Limited Krona Design LLC 



Cash and cash equivalents 535.1 627.6 

Financial assets 31,642.3 0.0 

Receivables and other assets 13,303.0 2,767.1 

Deferred tax assets 0.0 10.0 

Property 140,808.1 56,794.2 

Financial liabilities -1,120.5 -4,224.2 

Trade accounts payable 0.0 -153.9 


Provisions -47.4 -20.5 

Deferred tax liabilities -31,488.0 -9,967.9 

Currency translation adjustment 2,706.3 0.0 

Acquired net assets 153,758.3 31,642.3 

(Negative) goodwill 50,958.1 0.0 

Purchase price paid in cash 204,716.4 31,642.3 

Less cash and cash equivalents acquired -535.1 -627.6 

Net purchase price for property company 204,181.3 31,014.7 


Property 159,500.2 73,134.9 

Other non-current assets 50,509.9 1,681.5 



Current liabilities -792.5 -525.1 



Revenues 14,440.7 5,121.3 

Revenues 20,709.4 17,155.3 


Financial results -75.1 20.6 

Income taxes -7,631.1 -5,043.3 


2.3.2.1.2 Gangaw Investments Limited and OAO Kashirskij Dvor-Severyanin 

As of 13 November 2006 IMMOEAST acquired 50% of the shares in the Cypriote Gangaw Investments Limited and 

the Russian OAO Kashirskij Dvor-Severyanin. This transaction will lead to the construction of the Rostokinǒ Retail 

Park in Moscow through a joint project together with an established Russian property developer. The Rostokinǒ is 

scheduled for completion at the end of 2009, and has an excellent location at the intersection of the Mira Prospect 

and the future fourth ring road. 

Notes 















Segment CIS 


Gangaw OAO Kashirskij 

Company Investments Limited Dvor-Severyanin 





Receivables and other assets 0.0 319.3 


Property 0.0 38,701.0 

Financial liabilities -502.5 -2,879.1 

Other liabilities 0.0 -31.0 

Provisions 0.0 0.0 

Deferred tax liabilities 0.0 -8,960.6 

Currency translation adjustment 81.6 328.0 




Less cash and cash equivalents acquired 0.0 -0.4 



Property 0.0 42,222.1 

Other non-current assets 8,872.4 940.3 

Current assets 0.0 2,202.4 

Non-current liabilities 0.0 -8,868.2 

Current liabilities -507.1 -1,886.7 



Revenues 0.0 12.5 

Revaluation 0.0 0.0 

Operating profit (EBIT) -4,242.4 -65.2 

Financial results -7.5 -565.8 

Income taxes 0.8 119.1 

Net profit for the period -4,249.2 -511.9 

2.3.2.1.3 Trevima Ltd. and OOO Torgoviy Dom Na Khodinke 

IMMOEAST acquired 100% of the shares in the Cypriote Trevima Ltd. during the third quarter of 2006/07, which also 

resulted in the takeover of 100% of the shares in this company’s Russian subsidiary OOO Torgoviy Dom Na Khodinke. 

This transaction resulted in the acquisition of the 5th Avenue Shopping Center project, which is a three-storey shopping 

centre with two underground garage levels.





Segment CIS 


OOO Torgoviy Dom 

Company Trevima Ltd. Na Khodinke 





Receivables and other assets 0.0 2,788.3 


Property 0.0 109,717.0 

Financial liabilities 0.0 -191.4 

Other liabilities -147.2 -26,396.0 

Provisions -1.4 0.0 

Deferred tax liabilities 0.0 -21,104.2 

Currency translation adjustment 97.4 -416.2 







Property 0.0 119,845.6 



Non-current liabilities 0.0 -24,477.9 




Revenues 0.0 5,152.1 

Revaluation 0.0 11,582.7 

Operating profit (EBIT) 0.0 15,512.3 

Financial results 0.4 -1,730.0 

Income taxes 0.0 -3,485.2 

Net profit for the period 0.4 10,297.1 

2.3.2.2 Regional subsegment Ukraine 

2.3.2.2.1 Loberta Holding Limited and Roches Ventures Limited 

During the third quarter of 2006/07 IMMOEAST concluded a broad-based cooperation agreement in Ukraine, which 

Notes 











took the form of a joint investment with the well-known Ukrainian developer Alacor. Through a successive purchase 

of shares (from 24.9% to 51% and 41%, respectively) in the Cypriote Loberta Holding Limited and Roches Ventures 

Limited, the Alacor Business Park City logistics and office project and the Alacor Logistic Park Obukhov were acquired. 

Both the Business Park City and the Park Obukhov are located in the south of Kiev and have excellent traffic connections. 

The completion of both projects is scheduled for 2009. 





Segment CIS 

Location of property Ukraine 

Loberta. Roches Alacor Alacor 

Company Holdings Ltd Ventures Ltd. Construction LLC Alacor Scorta LLC Alacor City LLC 

Initial consolidation 10.1.2007 10.1.2007 10.1.2007 10.1.2007 10.1.2007 


Cash and cash equivalents 0.5 0.3 1.8 2.4 1.7 

Financial instruments 0.0 885.9 20.1 998.3 0.0 

Receivables and other assets 1,108.8 0.2 0.2 0.1 8.3 

Deferred tax assets 0.5 0.7 0.0 0.2 10.1 

Property 0.0 0.0 0.0 0.0 2,727.5 

Other liabilities -1,110.1 -67.8 -0.1 -0.1 -1,391.1 

Provisions -0.3 -0.2 0.0 0.0 0.0 

Deferred tax liabilities -0.6 0.0 0.0 -0.1 -348.1 

Currency translation adjustment 0.0 20.8 0.4 17.9 0.0 

Acquired net assets -1.2 839.7 22.4 1,018.7 1,008.4 

(Negative) goodwill 24.7 12,570.2 0.0 0.0 0.0 

Purchase price paid in cash 23.5 13,409.9 22.4 1,018.7 1,008.4 

Less cash and cash equivalents acquired -0.5 -0.3 -1.8 -2.4 -1.7 

Net purchase price for project company 23.0 13,409.6 20.6 1,016.3 1,006.7 


Property 0.0 0.0 0.0 0.0 2,760.8 

Other non-current assets 393.1 342.2 0.1 0.3 28.6 

Current assets 0.5 0.4 1.5 2.0 2.9 

Non-current liabilities -972.0 -3.1 0.0 0.0 -341.5 

Current liabilities -11.1 -78.7 -0.1 -0.1 -0.5 

Proportional share of net assets -589.5 260.8 1.5 2.2 2,450.3 


Revenues 0.0 0.0 0.0 0.0 0.0 

Revaluation 0.0 0.0 0.0 0.0 0.0 

Operating profit (EBIT) -31.4 -12,227.6 -0.4 -0.3 -2.7 

Financial results 12.2 0.0 0.0 0.0 -40.5 

Income taxes -0.6 0.1 0.1 0.1 10.7 

Net profit for the period -19.8 -12,227.5 -0.3 -0.2 -32.5

2.3.3 Segment South-Eastern Europe (SEE) 

2.3.3.1 Regional subsegment Bulgaria 

2.3.3.1.1 Koral Residence EAD 

IMMOEAST acquired 100% of the shares in the Bulgarian Koral Residence EAD as of 23 June 2006. A closed complex 

with a 4-star hotel and residential area will be built in Zarevo, 50 km south of the Black Sea resort of Burgas in Bulgaria, 

as a joint investment by IMMOEAST and Prime Property BG. This project was recognised under inventories in 

accordance with IAS 2 (see point 4.8). 



companies for the period from the acquisition date to the balance sheet date, which is included in the consolidated 


Segment SEE 

Location of property Bulgaria 

Company Koral Residence EAD 



Receivables and other assets 2,832.2 

Deferred tax liabilities -262.8 


(Negative) goodwill 281.5 




Property 0.0 







Revenues 0.0 





Net profit for the period -111.2 

Notes 











2.3.3.1.2 Blue Danube Holding Ltd. and Business Park West-Sofia EAD 

As of 12 December 2006 IMMOEAST acquired all of the shares in the Maltese Blue Danube Holding Ltd. and its 

Bulgarian subsidiary Business Park West-Sofia EAD. This project involves the revitalisation of a former light industrial 

and administrative complex in four phases to create a business park. 





Segment SEE All amounts in TEUR 30 April 2007 

Location of property Bulgaria Property 102,881.3 

Company Business Park West-Sofia EAD 






Cash and cash equivalents 2,508.2 














Less cash and cash equivalents acquired -2,508.2 




2.3.3.2 Regional subsegment Croatia 

2.3.3.2.1 Grand Centar d.o.o. and Grand Zagreb d.o.o. 

IMMOEAST purchased 80% of the shares in each of the Croatian companies Grand Centar d.o.o. and Grand Zagreb 

d.o.o. as of 30 November 2006, which resulted in the acquisition of the Grand Center office and retail property in the 

capital city of Zagreb. This represents the first direct investment by IMMOEAST in Croatia, and was realised together 

with Generali Immobilien AG. The majority of the space in the Grand Center is used as offices, but retail space, warehouses 

and an underground garage are also available. This property has a central location, roughly 800 m from the 

historical old city.





Segment SEE 

Location of property Croatia 

Company Grand Centar d.o.o. Grand Zagreb d.o.o. 




Financial assets 0.0 10,249.9 



Property 39,400.0 164.2 

Financial liabilities 0.0 -361.0 

Trade accounts payable -49.7 -43.5 

Other liabilities -26,279.8 -618.4 

Provisions 0.0 -14.0 

Deferred tax liabilities -2,844.5 -746.8 


(Negative) goodwill 0.0 2,487.8 





Property 45,608.2 164.2 

Other non-current assets 0.0 2,609.8 


Non-current liabilities -4,132.6 -0.3 




Revenues 618.3 971.4 

Revaluation 6,208.2 0.0 

Operating profit (EBIT) 7,606.7 -256.3 

Financial results -685.9 1.6 

Income taxes -1,390.7 50.9 

Net profit for the period 5,530.1 -203.8 

2.3.3.3 Regional subsegment Romania 

2.3.3.3.1 S.C. Almera New Capital s.r.l., S.C. Meteo Business Park s.r.l., S.C. Stupul de Albine s.r.l. 

As of 13 July 2006 IMMOEAST acquired 100% of the shares in S.C. Almera New Capital s.r.l., which owns a property 

in Timis¸oara. This transaction will lead to the creation of a logistics centre portfolio of five to seven objects together 

with the development partner Eyemaxx. A 50% stake in this company was sold as of 1 February 2007 and resulted 

in a changeover to proportionate consolidation as of 30 April 2007. In addition, 89% of the shares in S.C. Meteo 

Business Park s.r.l. and S.C. Stupul de Albine s.r.l. were acquired as of 27 July 2006, resulting in the acquisition of 

Notes 











the Jandarmeriei property. This project comprises the development of an office complex and residential complex in 

the north of Bucharest. 





Segment SEE 

Location of property Romania 

S.C. Almera. S.C. Meteo. S.C. Stupul 

Company New Capital s.r.l Business Park s.r.l de Albine s.r.l. 

Date of initial consolidation 13.7.2006 27.7.2006 27.7.2006 


Cash and cash equivalents 0.0 2,377.1 1,525.7 

Receivables and other assets 0.0 172.4 9,017.2 


Property 204.5 9,849.6 0.0 

Financial liabilities -88.0 -4,797.9 -4,102.0 

Trade accounts payable 0.0 -46.1 -42.5 

Other liabilities -120.8 -3,669.9 -3,560.9 

Deferred tax liabilities 0.0 -663.5 -499.0 

Currency translation adjustment -0.2 -198.5 -149.5 

Acquired net assets -4.2 3,034.7 2,203.9 

(Negative) goodwill 4.2 1,472.0 1,195.0 

Purchase price paid in cash 0.0 4,506.7 3,398.8 

Less cash and cash equivalents acquired 0.0 -2,377.1 -1,525.7 

Net purchase price for property company 0.0 2,129.6 1,873.1 


Property 4,467.6 29,951.5 0.0 

Other non-current assets 19.4 1,548.3 1,236.7 

Current assets 969.1 1,745.5 10,389.0 

Non-current liabilities -1,261.1 -3,798.4 -509.5 

Current liabilities -1,076.2 -4,978.4 -4,315.8 



Revenues 0.0 0.0 0.0 

Revaluation 0.0 19,084.7 0.0 

Operating profit (EBIT) -384.3 19,105.5 35.1 

Financial results 32.7 -45.1 -34.1 

Income taxes 18.6 -3,021.0 0.9 

Net profit for the period -333.0 16,039.3 1.8

2.3.3.3.2 Klyos Media s.r.l. 

On 9 October 2006 IMMOEAST started the Craiova shopping centre project in Romania based on a joint venture 

agreement with an experienced general planner and developer in the CEE region with the purchase of a 90% stake 

in the Romanian Klyos Media s.r.l. This shopping centre is located in the north-western section of Craiova, the fifth 

largest city in Romania, and has excellent traffic connections. 





Segment SEE 


Company Klyos Media s.r.l. 






Trade accounts payable -8,929.1 



Minority interests -3.0 

Acquired net assets 34.7 


Purchase price paid in cash 80.9 


Net purchase price for property company 80.2 









Revenues 0.0 






2.3.3.3.3 Polus Transilvania Companie de Investitii S.A. 

IMMOEAST purchased a 15% stake in the Romanian Polus Transilvania Companie de Investitii S.A. as of 2 November 

2006, and thereby acquired the Polus Center development project. This project involves the construction of a 

shopping centre in Cluj, the capital of the booming Romanian province of Transylvania. Completion is scheduled for 

November 2007. 

Notes 











2.3.3.3.4 S.C. EFG Urban Achizitii s.r.l. 

As of 14 December 2006 IMMOEAST purchased an 89% stake in the multi-functional project IUS Brasov with office, 

retail and residential space as well as a hotel. The property is located several minutes north of the commercial centre 

and old city, and offers an attractive infrastructure and good connections to public and private transportation. 

IMMOEAST has recognised this project under inventories in accordance with IAS 2 (see point 4.8). 





Segment SEE All amounts in TEUR 30 April 2007 

Location of property Romania Property 0.0 

Company SC EFG Urban Achizitii s.r.l. Other non-current assets 1,406.9 






2,256.4 

34,145.4 




-22,528.0 

-75.1 

16,801.2 



Financial liabilities -21,079.5 

Revenues 0.0 




Operating profit (EBIT) 107.4 





Minority interests -1,224.9 



(Negative) goodwill 1,307.8 



Net purchase price for property company 8,872.8

2.3.3.3.5 SBACARO s.r.l. 

The SIBIU joint venture shopping centre project was 

acquired as of 15 December 2006 from the Cypriote 

S+B CEE Alpha Cyprus Limited (100% subsidiary of 

S+B CEE) through SBACARO s.r.l., a wholly owned 

Romanian investment company. This object is also 

located in the north-east of the city, directly on the 

outer ring road and close to the historical city centre. 

The opening is planned for 2009. 








statements: 

2.3.3.3.6 Logistic Contractor s.r.l. 

In December 2006 the 100% acquisition of the 

Romanian Logistic Contractor s.r.l. led to the conclusion 

of a framework agreement for the Bucharest 

Distribution Park project in Romania. This property 

is located in the north of Bucharest, close to the 

beltway that surrounds this city and the autobahn 

that extends to Ploiesti and Brasov in the north. The 

project involves the construction of a modern logistics 

and distribution park in stages. The realisation 

of the entire project is expected to take three years, 

and numerous forwarding agents have already 

expressed an interest. 




company level as of the balance sheet date and the 

income statement of the company for the period 

from the acquisition date to the balance sheet date, 

which is included in the consolidated financial 

statements: 

Notes 

Segment SEE 


Company SBACARO s.r.l. 






Non-current liabilities 0.0 




Revenues 0.0 






Segment SEE 


Company Logistic Contractor s.r.l. 










Revenues 0.0 


Operating profit (EBIT) -4,258.4 



Net profit for the period -4,218.8 











2.3.3.3.7 FMZ TM s.r.l. 

As of 22 December 2006 a 50% stake was acquired 

in the Romanian FMZ TM s.r.l, a 100% subsidiary 

of the Cypriote company S+B CEE. This transaction 

resulted in the acquisition of the Targu Mures 

specialty shopping centre project. This property is 

located in the emerging economic region of Transylvania, 

which has a population of 160,000. This 

specialty shopping centre is scheduled to open in 

2009. 








statements: 

2.3.3.3.8 S.C. Arbor Corporation s.r.l. 

As of 19 February 2007 shares in S.C. Arbor Corporation 

s.r.l. were acquired in connection with 

the Glina specialty shopping centre joint venture 

project, which is being carried out by IMMOEAST 

and a German developer. This project involves 

the purchase of several sites and construction of 

a specialty shopping centre. The designated location 

is situated on the eastern border of Bucharest, 

and has an excellent infrastructure as well as ideal 

transport connections. Intensive negotiations with 

potential tenants are currently in progress. 








statements: 

Segment SEE 


Company FMZ TM s.r.l. 










Revenues 0.0 






Segment SEE 


Company S.C. Arbor Corporation s.r.l. 






Property 626.5 


Minority interests 1.0 

Acquired net assets -8.8 




Net purchase price for property company -3,313.3 









Revenues 0.0 





Net profit for the period -204.1

2.3.3.3.9 S.C. IE Baneasa Project s.r.l. 

IMMOEAST and the Euromall developer group concluded 

an agreement for the construction of a joint 

venture project, the Euromall Residential Park, as 

of 19 February 2007 through the acquisition of all 

shares in the Romanian S.C. IE Baneasa Project 

s.r.l. The site is located in the north-western part 

of Bucharest, in an area where a number of highquality 

residential objects are currently under construction. 

This project involves the construction of 

residential space in the middle to upper segment, 

whereby completion will take place in four phases 

over a period of four to five years. 








statements: 

2.3.3.3.10 Eye Shop Targu Jiu s.r.l. and Eye 

Shop Hunedoara s.r.l. 

As part of activities carried out through a joint 

venture between IMMOEAST and the developer 

Eyemaxx, 50% of the shares in each of the two 

Romanian companies Eye Shop Targu Jiu s.r.l. and 

Eye Shop Hunedoara s.r.l. were acquired during the 

fourth quarter of 2006/07. Plans calls for the construction 

of specialty shopping centres and shopping 

malls in the major economic and industrial cities 

of Romania. 








statements: 

Segment SEE 


Company S.C. IE Baneasa Project s.r.l. 










Revenues 0.0 






Segment SEE 


Company Eye Shop Targu Jiu s.r.l. 



Notes 

Cash and cash equivalents 715,9 

Receivables and other assets 1,4 

Deferred tax assets 114,3 

Property 771,5 

Other liabilities -1,479,7 

Deferred tax liabilities -115,3 

Acquired net assets 8,1 

(Negative) goodwill -8,1 

Purchase price paid in cash 0,0 

Less cash and cash equivalents acquired -715,9 

Net purchase price for property company -715,8 


Property 788,4 

Other non-current assets 0,0 

Current assets 116,6 

Non-current liabilities 0,0 

Current liabilities -177,6 

Proportional share of net assets 727,5 


Revenues 0,0 

Revaluation 0,0 

Operating profit (EBIT) -0,1 

Financial results -7,3 

Income taxes 0,0 

Net profit for the period -7,5 











2.3.3.3.11LogCenterPloiestis.r.l.,LogCenterIasis.r.l.andLogCenterBrasovs.r.l 

A further transaction during the fourth quarter involved the purchase of 50% of the shares in the Romanian Log Center 

Ploiesti s.r.l., Log Center Iasi s.r.l. and Log Center Brasov s.r.l A logistics portfolio will be compiled through a joint venture 

with the developer Eyemaxx. The objects will be situated at major economic and industrial sites in the regional 

cities of Romania, which are undersupplied with modern warehouse and logistics facilities at the present time. The 

realisation of these projects is planned to take place over the coming three to five years. 





Segment SEE 


Company Log Center Ploiesti s.r.l. Log Center Brasov s.r.l. Log Center Iasi s.r.l. 

Date of initial consolidation 19.2.2007 19.2.2007 29.3.2007 


Cash and cash equivalents 3.8 0.0 0.0 

Receivables and other assets 0.0 0.8 0.0 


Property 3,921.3 0.0 0.0 

Financial liabilities 0.0 0.0 -0.1 

Trade accounts payable -3.3 -1.9 0.0 

Other liabilities -3,900.6 -3.2 0.0 

Deferred tax liabilities -6.1 0.0 0.0 

Acquired net assets 15.7 -4.2 -0.1 

(Negative) goodwill -15.7 4.2 0.1 

Purchase price paid in cash 0.0 0.0 0.0 

Less cash and cash equivalents acquired -3.8 0.0 0.0 

Net purchase price for property company -3.8 0.0 0.0 


Property 4,007.1 0.0 0.0 

Other non-current assets 2.3 2.8 0.0 

Current assets 54.7 24.8 0.0 

Non-current liabilities -146.2 0.0 0.0 

Current liabilities -2,145.9 -35.0 -0.1 

Proportional share of net assets 1,772.1 -7.4 -0.1 


Revenues 0.0 0.0 0.0 

Revaluation 0.0 0.0 0.0 

Operating profit (EBIT) -27.6 -17.2 -0.1 

Financial results -5.1 0.0 0.0 

Income taxes 3.8 2.7 0.0 

Net profit for the period -28.9 -14.5 -0.1

2.3.3.3.12 S.C. Union Investitii s.r.l. 

The Euromall Galati Shopping Center, a joint venture 

project in Romania, was stated at the end of March 

2007 through the acquisition of the Romanian S.C. 

Union Investitii s.r.l. This project includes the construction 

and development of a modern shopping 

centre. In addition to shops, the Euromall Galati 

will also contain an entertainment area and a food 

court. The site is located at the centre of Galati near 

the main Domneasca road, it can be easily reached 

by private transportation and is opposite the bus 

terminal and also close to the main railway station. 

The completion of this project is planned for the end 

of 2007. 








statements: 


Company S.C. Union Investitii S.r.l. 

























Revenues 0.0 


Operating profit (EBIT) 15.4 



Net profit for the period 11.5 

2.3.3.3.13 S.C. Valero invest s.r.l. and Baneasa 6981 s.r.l. 

At the end of 2006/07 IMMOEAST acquired 100% of the shares in two Romanian companies, S.C Valero invest s.r.l. 

and S.C. Baneasa 6981 s.r.l., and thereby took over the Victoria Park office complex, a joint project under development 

by these firms in Bucharest. This project involves the construction of a class A office complex, which will comprise 

four connected building sections. The site is located in the northern part of Baneasa, only 9 km from the city 

centre and 5 km from the airport. The surrounding area is considered to be the political centre of the city because the 

Romanian government and numerous embassies are situated here. 

Notes 















Segment SEE 


Company S.C. Valero Invest s.r.l. S.C. Baneasa 6981 s.r.l. 

Date of initial consolidation 20.3.2007 5.4.2007 


Cash and cash equivalents 18,041.4 701.5 

Receivables and other assets 1,015.9 900.1 


Property 17,954.9 38,478.7 





Currency translation adjustment 203.2 528.0 


(Negative) goodwill 466.0 2,368.5 


Less cash and cash equivalents acquired -18,041.4 -701.5 

Net purchase price for property company -7,264.5 25,851.6 


Property 21,624.0 40,213.1 

Other non-current assets 476.2 2,758.8 



Current liabilities -1,547.5 -2,015.3 



Revenues 117.5 59.7 

Revaluation 3,201.4 0.0 

Operating profit (EBIT) 3,226.6 85.0 


Income taxes -516.9 -12.0 

Net profit for the period 2,649.2 63.1

2.3.3.4 Regional subsegment Serbia 

2.3.3.4.1 OCEAN ATLANTIC DORCOL DOO 

IMMOEAST also completed its first investments in Serbia during the second quarter of the 2006/07 Business Year. 

An 80% stake in OCEAN ATLANTIC DORCOL DOO, a company with headquarters in Belgrade, was acquired as of 

24 August 2006, this transaction added the Francuska residential project to the IMMOEAST portfolio. The project 

entails the construction of 130 apartments and 184 underground garage spaces. 





Segment SEE 

Location of property Serbia 

Company OCEAN ATLANTIC DORCOL DOO 








Minority interests -6.1 

Acquired net assets 24.5 




Net purchase price for property company -754.7 

Notes 


Property 0.0 







Revenues 1.2 
















2.3.3.5 Regional subsegment Slovenia 

2.3.3.5.1 Alpha Real d.o.o. and Beta Real d.o.o. 

During the second quarter of the 2006/07 Business Year IMMOEAST also made its first investments in Slovenia by 

acquiring 100% of the shares in Alpha Real d.o.o. and Beta Real d.o.o. as of 30 September 2006. These transactions 

led to the takeover of two specialty shopping centres in Kranj and Nove Mesto. The facilities are located at central 

sites in the respective cities and are fully let. 





Location of property Slovenia 

Company Alpha real d.o.o. Beta real d.o.o. 






Property 15,569.9 6,940.5 


Other liabilities -19.7 -7.3 

Provisions -15.5 -14.1 

Deferred tax liabilities -1,540.8 -619.5 







Property 21,943.8 9,385.5 


Current assets 968.6 448.9 





Revenues 758.1 354.9 

Revaluation 6,373.8 2,444.9 



Income taxes -1,785.9 -768.1 

Net profit for the period 5,029.9 1,821.9

2.3.4Impactofinitialconsolidations 

Point 2.3 presents the companies that were initially consolidated during 2006/07. The previous section shows the 

impact of the acquisition or founding of major companies, while the following section presents the companies that 

hold investment property as defined in IAS 40. The following table shows the acquired assets and liabilities at fair 

value as well as the consolidated proportional share of net assets at the individual company level as of the balance 

sheet date and the income statement of the company for the period from the acquisition date to the balance sheet 

date, which is included in the consolidated financial statements: 

Segment CEE CEE CEE CEE CEE CEE 

Location of property Poland Poland Poland Poland Poland Poland 

Salzburg Center Xantium Equator Real Zenith Real Nimbus Real Cirrus Real 

Company Development S.A Sp. z o.o. Sp. z o.o. Sp. z o.o. Sp. z o.o. Sp. z o.o. 

Initial consolidation 31.7.2006 4.8.2006 28.8.2006 28.8.2006 28.8.2006 28.8.2006 


Cash and cash equivalents 107.1 0.0 7.7 2.5 6.3 6.3 

Receivables and other assets 2,585.7 0.0 28.5 16.3 13.8 13.8 


Property 20,824.8 0.0 1,048.5 1,048.5 1,048.5 1,048.5 

Financial liabilities 0.0 0.0 -931.0 -639.9 -607.2 -610.6 

Trade accounts payable -912.7 0.0 -18.1 -19.9 -17.5 -17.8 

Other liabilities -16,786.4 0.0 -133.4 -134.7 -104.8 -105.2 

Deferred tax liabilities -1,174.0 0.0 -43.8 -99.4 -106.0 -105.2 

Currency translation adjustment 7.5 12.0 -59.7 -56.3 -56.2 -56.2 

Acquired net assets 4,716.1 12.0 -99.6 117.1 177.0 173.6 

(Negative) goodwill -4,979.1 0.0 2,234.8 1,899.2 1,833.0 1,836.3 

Outstanding purchase price 0.0 0.0 0.0 0.0 0.0 0.0 

Purchase price paid in cash -263.0 12.0 2,135.2 2,016.3 2,009.9 2,009.9 

Less cash and cash equivalents acquired -107.1 0.0 -7.7 -2.5 -6.3 -6.3 

Net purchase price for project company -370.2 12.0 2,127.4 2,013.9 2,003.6 2,003.7 


Property 34,606.0 81,555.9 4,311.8 3,451.4 6,251.5 3,321.1 

Other non-current assets 190.5 586.6 357.5 573.0 1,112.3 552.9 

Current assets 2,659.1 20,437.7 399.9 33.6 36.1 35.8 

Non-current liabilities -3,821.8 -957.2 -3,286.2 -1,273.6 -1,774.6 -1,220.3 

Current liabilities -106.9 -380.6 -22.8 -2.8 -3.0 -2.7 

Proportional share of net assets 33,526.9 101,242.4 1,760.3 2,781.6 5,622.3 2,686.8 


Revenues 6.8 2,993.8 0.0 0.0 0.0 0.0 

Revaluation 13,312.5 719.8 1,574.0 2,360.6 5,126.5 2,232.0 

Operating profit (EBIT) 17,720.3 2,751.1 -370.0 1,003.9 4,369.7 921.3 

Financial results 108.9 -1,374.0 83.2 -23.1 -21.7 -21.5 

Notes 

Income taxes -2,477.5 -327.8 -301.3 -439.6 -964.2 -416.2 

Net profit for the period 15,351.7 1,049.4 -588.2 541.2 3.383.8 483.7 












Location of property Poland Poland Poland Slovakia Slovakia Slovakia 

Fobos Investment Passat Real Immoeast Dunaj STOP.SHOP. 

Company MBP I Sp. z o.o. Sp. z o.o. Sp. z o.o. s.r.o. SCT s.r.o. Zvolen s.r.o. 

Initial consolidation 1.11.2006 14.12.2006 27.3.2007 14.6.2006 21.12.2006 19.2.2007 



Receivables and other assets 0.0 6.5 205.3 0.0 444.9 0.0 


Property 0.0 0.0 28,344.4 0.0 11,724.1 0.0 

Financial liabilities 0.0 0.0 -12,616.1 0.0 -4,335.8 0.0 

Trade accounts payable 0.0 0.0 -23.9 0.0 -224.3 0.0 

Other liabilities 0.0 0.0 -1,776.4 0.0 -95.1 0.0 

Provisions 0.0 0.0 -14.6 0.0 -0.8 0.0 

Deferred tax liabilities 0.0 0.0 -2,821.2 0.0 -1,169.1 0.0 

Currency translation adjustment -99.6 1.4 -158.3 -4.1 218.1 0.0 

Acquired net assets -99.6 7.9 11,257.9 -4.1 6,889.2 0.0 

(Negative) goodwill 362.0 0.0 2,945.9 55.4 1,406.5 53.1 


Purchase price paid in cash 262.4 7.9 14,203.8 51.3 8,295.7 53.1 

Less cash and cash equivalents acquired 0.0 0.0 -69.5 0.0 -309.6 0.0 

Net purchase price for project company 262.4 7.9 14,134.4 51.3 7,986.1 53.1 


Property 127,942.0 547.0 28,741.2 14.8 15,204.0 419.4 

Other non-current assets 1,425.6 11.2 2,992.0 3.3 1,501.3 0.1 

Current assets 3,992.6 116.8 245.9 24.1 537.3 82.7 

Non-current liabilities -74,892.0 -8.2 -15,431.2 0.0 -6,060.9 0.0 

Current liabilities -1,292.9 -45.2 -135.4 -4.3 -477.7 -499.9 

Proportional share of net assets 57,175.3 621.5 16,412.4 37.9 10,704.0 2.3 


Revenues 4,173.2 0.0 17.4 0.0 428.8 0.0 

Revaluation 16,837.8 0.0 45.1 0.0 2,695.7 0.0 

Operating profit (EBIT) 19,054.6 -5.8 -132.3 -74.4 2,902.6 -53.8 

Financial results -958.4 -25.6 295.7 2.3 33.1 0.0 

Income taxes -3,557.9 3.0 -58.7 3.1 -557.9 0.1 

Net profit for the period 14,538.2 -28.4 104.6 -68.9 2,377.8 -53.7


Location of property Slovakia Czech Republic Czech Republic Czech Republic Czech Republic Czech Republic 

MY BOX Strakonice Aragonit Nakupni Centrum Nakupni Centrum MY BOX 

Company SCP s.r.o. s.r.o. s.r.o. Trebic s.r.o. AVENTIN Tabor s.r.o. Kolin s.r.o. 

Initial consolidation 19.3.2007 30.5.2006 1.7.2006 30.8.2006 18.9.2006 27.10.2006 



Receivables and other assets 0.2 0.0 121.3 2,399.4 0.0 0.0 


Property 0.2 0.0 11,690.9 0.0 134.3 0.0 

Financial liabilities 0.0 0.0 -5,404.3 0.0 0.0 0.0 

Trade accounts payable -0.1 0.0 -38.9 0.0 -53.6 0.0 

Other liabilities -223.1 0.0 -29.4 -2,405.0 -360.5 0.0 

Provisions -0.3 0.0 -99.3 0.0 0.0 0.0 

Deferred tax liabilities 0.0 0.0 -1,516.7 0.0 0.0 0.0 

Currency translation adjustment 2.4 0.0 -51.9 0.0 0.0 0.0 

Acquired net assets -176.7 3.6 4,919.2 -3.4 1.4 3.2 

(Negative) goodwill 209.4 4.4 1,699.4 21.3 0.9 2.3 


Purchase price paid in cash 32.7 8.0 6,618.6 17.9 2.3 5.5 

Less cash and cash equivalents acquired -1.4 -3.6 -247.5 -0.1 -280.4 -3.1 

Net purchase price for project company 31.3 4.4 6,371.1 17.9 -278.2 2.4 


Property 211.7 16.5 15,936.7 2,003.4 1,652.0 3.0 

Other non-current assets 46.0 1.7 1,727.1 24.2 9.0 1.1 

Current assets 29.5 7.7 595.9 529.8 54.3 23.7 

Non-current liabilities -30.2 -24.7 -7,686.5 0.0 0.0 -25.6 

Current liabilities -195.9 -2.7 -382.1 -3.5 -136.7 -2.1 

Proportional share of net assets 61.1 -1.6 10,191.1 2,553.9 1,578.6 0.2 


Revenues 0.0 0.0 0.0 0.0 0.0 0.0 

Revaluation 0.0 0.0 4,159.7 0.0 0.0 0.0 

Operating profit (EBIT) -210.1 -11.2 4,406.2 -32.9 -13.3 -6.3 

Financial results -4.2 -0.2 -147.4 -185.5 -97.2 -0.2 

Notes 

Income taxes 0.9 1.7 -1,038.2 20.0 8.2 1.0 

Net profit for the period -213.4 -9.8 3,220.6 -198.4 -102.2 -5.4 












Location of property Czech Republic Czech Republic Czech Republic Czech Republic Czech Republic Czech Republic 

WINNIPEGIA MY BOX MY BOX MY BOX BB C – 

Company Diamant Real s.r.o. SHELF s.r.o. Rakovnik s.r.o. Sokolov s.r.o. Hranice s.r.o. Building A, k.s. 

Initial consolidation 31.10.2006 13.11.2006 20.11.2006 20.11.2006 20.11.2006 13.12.2006 


Cash and cash equivalents 212.0 7.3 3.5 3.5 3.5 5,512.3 

Receivables and other assets 512.9 0.0 0.0 0.0 0.0 1,217.0 


Property 36,543.5 0.0 0.0 0.0 0.0 64,335.5 

Financial liabilities -19,523.8 0.0 0.0 0.0 0.0 -31,570.0 

Trade accounts payable -411.5 0.0 -1.2 0.0 0.0 -53.2 

Other liabilities -173.5 -0.2 0.0 0.0 0.0 -2,619.0 

Provisions -2.5 0.0 0.0 0.0 0.0 -65.5 

Deferred tax liabilities -4,715.6 0.0 0.0 0.0 0.0 -9,316.9 

Currency translation adjustment 0.0 0.1 0.0 0.0 0.0 515.8 

Acquired net assets 13,032.5 7.1 2.6 3.5 3.5 28,092.4 

(Negative) goodwill 4,149.7 5.9 -1.8 -3.1 -3.0 9,155.5 

Outstanding purchase price 0.0 -57.8 0.0 0.0 0.0 0.0 

Purchase price paid in cash 17,182.1 -44.7 0.7 0.5 0.5 37,247.9 

Less cash and cash equivalents acquired -212.0 -7.3 -3.5 -3.5 -3.5 -5,512.3 

Net purchase price for project company 16,970.1 -52.0 -2.8 -3.1 -3.0 31,735.5 


Property 47,930.3 35,149.0 38.3 4.5 963.2 71,243.3 

Other non-current assets 5,024.2 201.4 2.2 1.1 2.4 9,424.4 

Current assets 513.6 773.3 124.1 6.1 125.2 2,244.8 

Non-current liabilities -25,435.0 -2,070.5 -18.0 -10.3 -81.2 -43,434.0 

Current liabilities -1,389.6 -422.0 -5.9 -1.4 -364.7 -1,489.6 

Proportional share of net assets 26,643.6 33,631.2 140.8 0.0 644.8 37,989.0 


Revenues 1,021.1 829.9 0.0 0.0 0.0 1,595.9 

Revaluation 10,973.2 6,437.6 0.0 0.0 0.0 6,533.6 

Operating profit (EBIT) 11,639.0 6,834.8 -1.4 -1.4 -4.9 7,906.9 

Financial results -432.3 -824.1 -4.6 -0.2 -28.9 -833.6 

Income taxes -2,692.0 -1,546.4 1.9 1.1 2.4 -1,528.3 

Net profit for the period 8,514.7 4,464.4 -4.1 -0.4 -31.4 5,545.0

Segment CEE CEE CEE CEE CEE 

Location of property Czech Republic Czech Republic Czech Republic Czech Republic Czech Republic 

BB C – Building B, BB C – Building C, MY BOX MY BOX MY BOX Jablonec 

Company k.s. k.s. Pribram s.r.o. Breclav s.r.o. nad Nisou s.r.o. 

Initial consolidation 13.12.2006 13.12.2006 15.12.2006 12.2.2007 12.2.2007 


Cash and cash equivalents 2,213.3 513.7 78.5 1.6 1.6 

Receivables and other assets 1,403.1 1,680.8 17.8 0.2 0.2 


Property 53,610.8 40,132.8 6.8 0.1 0.0 

Financial liabilities -20,147.1 0.0 -9.9 0.0 0.0 

Trade accounts payable -1,153.4 -203.7 -1.3 -0.4 -0.4 

Other liabilities -871.1 -19,273.7 -89.3 0.0 0.0 

Provisions -85.4 -116.6 0.0 0.0 0.0 

Deferred tax liabilities -8,715.1 -5,912.4 0.0 0.0 0.0 


Acquired net assets 26,990.1 17,140.5 2.8 1.7 1.9 

(Negative) goodwill 8,470.4 5,938.8 -2.4 -1.4 -1.7 

Purchase price paid in cash 35,460.5 23,079.3 0.4 0.2 0.2 

Less cash and cash equivalents acquired -2,213.3 -513.7 -78.5 -1.6 -1.6 

Net purchase price for project company 33,247.2 22,565.6 -78.1 -1.3 -1.4 


Property 43,637.4 60,905.9 64.4 0.1 0.0 

Other non-current assets 6,642.2 5,976.5 5.2 0.8 1.0 

Current assets 1,954.4 1,971.7 100.8 0.6 0.7 

Non-current liabilities -26,687.2 -26,768.1 -18.0 0.0 0.0 

Current liabilities -2,128.8 -1,373.4 -9.4 -1.5 -1.5 

Proportional share of net assets 23,418.0 40,712.7 142.9 0.0 0.3 


Revenues 1,753.2 1,353.9 0.0 0.0 0.0 

Revaluation -10,202.6 20,410.2 0.0 0.0 0.0 

Operating profit (EBIT) -11,483.6 21,170.8 0.6 -0.8 -0.5 

Financial results -383.5 -493.5 -4.4 0.0 0.0 

Notes 

Income taxes 2,490.4 -4,875.0 2.2 0.5 0.5 

Net profit for the period -9,376.7 15,802.4 -1.6 -0.2 0.0 











Segment CEE CEE CEE CEE CEE 

Location of property Czech Republic Czech Republic Czech Republic Hungary Hungary 

STOP.SHOP. STOP.SHOP. 

Company Centre Investments s.r.o. Brno Estates a.s. Delta Park a.s. TB Kft. BCS Kft. 

Initial consolidation 28.2.2007 28.2.2007 1.3.2007 8.6.2006 8.6.2006 


Cash and cash equivalents 557.0 1,211.8 84.9 0.0 0.0 

Receivables and other assets 456.3 686.6 584.6 0.0 0.0 


Property 16,191.0 56,955.4 47,680.4 0.0 0.0 

Financial liabilities -3,699.1 -18,895.0 -13,759.9 0.0 0.0 

Trade accounts payable -33.4 -1,889.2 -177.4 0.0 0.0 

Other liabilities -360.1 -272.7 -7,405.8 0.0 0.0 

Provisions -100.1 0.0 0.0 0.0 0.0 

Deferred tax liabilities -3,148.0 -9,334.3 -6,858.0 0.0 0.0 

Currency translation adjustment -12.1 -41.9 44.9 -0.2 -0.2 

Acquired net assets 10,538.3 28,735.9 20,407.5 -0.2 -0.2 

(Negative) goodwill 4,042.3 21,683.5 6,899.9 0.0 0.0 

Purchase price paid in cash 14,580.6 50,419.4 27,307.4 -0.2 -0.2 

Less cash and cash equivalents acquired -557.0 -1,211.8 -84.9 0.0 0.0 

Net purchase price for project company 14,023.7 49,207.6 27,222.4 -0.2 -0.2 


Property 17,114.6 79,028.2 44,949.8 405.1 399.1 

Other non-current assets 3,387.7 14,707.0 6,523.0 2.7 2.9 

Current assets 1,663.9 2,271.2 1,042.1 88.8 1,065.7 

Non-current liabilities -6,938.3 -30,619.8 -19,273.9 -0.4 0.0 

Current liabilities -541.0 -927.1 -2,108.8 -10.4 -129.8 

Proportional share of net assets 14,686.9 64,459.5 31,132.3 485.8 1,338.0 


Revenues 138.8 200.8 443.4 0.0 0.0 

Revaluation 833.7 20,241.3 -2,983.2 0.0 0.0 

Operating profit (EBIT) 161.1 12,715.8 -3,448.3 -13.6 -11.8 

Financial results -12.4 -77.1 -167.5 2.3 -2.9 

Income taxes -192.1 -4,838.4 700.6 1.8 2.4 

Net profit for the period -43.3 7,800.3 -2,915.2 -9.5 -12.4

Segment CEE CIS CIS CIS CIS 

Location of property Hungary Russia Russia Russia Russia 

Central Business Rt. Wakelin Krona Design OAO Kashirskij OOO Torgoviy 

Company Center Rt. Promotions Limited LLC Dvor-Severyanin Dom Na Khodinke 

Initial consolidation 15.1.2007 21.6.2006 21.6.2006 30.10.2006 30.11.2006 


Cash and cash equivalents 1,077.2 535.1 627.6 0.4 129.9 

Financial instruments 0.0 31,642.3 0.0 0.0 0.0 

Receivables and other assets 684.1 13,303.0 2,767.1 319.3 2,788.3 


Property 20,710.0 140,808.1 56,794.2 38,701.0 109,717.0 

Financial liabilities 0.0 -1,120.5 -4,224.2 -2,879.1 -191.4 

Trade accounts payable -40.9 0.0 -153.9 0.0 0.0 

Other liabilities -5,280.6 -2,580.6 -14,190.2 -31.0 -26,396.0 

Provisions 0.0 -47.4 -20.5 0.0 0.0 

Deferred tax liabilities -1,809.5 -31,488.0 -9,967.9 -8,960.6 -21,104.2 

Currency translation adjustment 243.3 2,706.3 0.0 328.0 -416.2 

Acquired net assets 15,588.3 153,758.3 31,642.3 27,906.8 64,781.1 

(Negative) goodwill 2,033.6 50,958.1 0.0 0.0 1.1 

Outstanding purchase price 0.0 0.0 0.0 0.0 0.0 

Purchase price paid in cash 17,621.9 204,716.4 31,642.3 27,906.8 64,782.2 

Less cash and cash equivalents acquired -1,077.2 -535.1 -627.6 -0.4 -129.9 

Net purchase price for project company 16,544.7 204,181.3 31,014.7 27,906.4 64,652.3 


Property 20,481.7 159,500.2 73,134.9 42,222.1 119,845.6 

Other non-current assets 1,855.2 50,509.9 1,681.5 940.3 592.2 

Current assets 1,721.2 5,153.4 2,455.2 2,202.4 3,555.4 

Non-current liabilities -1,883.2 -36,916.5 -14,617.8 -8,868.2 -24,477.9 

Current liabilities -135.1 -792.5 -525.1 -1,886.7 -648.0 

Proportional share of net assets 22,039.7 177,454.4 62,128.7 34,609.9 98,867.3 


Revenues 186.8 14,440.7 5,121.3 12.5 5,152.1 

Revaluation -905.4 20,709.4 17,155.3 0.0 11,582.7 

Operating profit (EBIT) -1,298.0 30,583.8 19,635.5 -65.2 15,512.3 

Financial results 62.0 -75.1 20.6 -565.8 -1,730.0 

Notes 

Income taxes 144.1 -7,631.1 -5,043.3 119.1 -3,485.2 

Net profit for the period -1,092.0 22,877.7 14,612.8 -511.9 10,297.1 











Segment CIS SEE SEE SEE SEE 

Location of property Ukraine Bulgaria Croatia Croatia Romania 

Business Park Grand Zagreb Grand Centar S.C. Almera 

Company Alacor City LLC West-Sofia EAD d.o.o. d.o.o. New Capital s.r.l. 

Initial consolidation 10.1.2007 12.12.2006 30.11.2006 30.11.2006 13.7.2006 


Cash and cash equivalents 1.7 2.508.2 41.7 0.1 0.0 

Financial instruments 0.0 0.0 10,249.9 0.0 0.0 

Receivables and other assets 8.3 1,994.6 579.5 721.5 0.0 


Property 2,727.5 22,694.7 164.2 39,400.0 204.5 

Financial liabilities 0.0 0.0 -361.0 0.0 -88.0 

Trade accounts payable 0.0 0.0 -43.5 -49.7 0.0 

Other liabilities -1,391.1 -14,709.8 -618.4 -26,279.8 -120.8 

Provisions 0.0 0.0 -14.0 0.0 0.0 

Deferred tax liabilities -348.1 -1,223.2 -746.8 -2,844.5 0.0 

Currency translation adjustment 0.0 0.0 0.0 0.0 -0.2 

Acquired net assets 1,008.4 11,264.5 9,315.1 10,996.7 -4.2 

(Negative) goodwill 0.0 0.0 2,487.8 0.0 4.2 


Purchase price paid in cash 1,008.4 11,264.5 11,802.9 10,996.7 0.0 

Less cash and cash equivalents acquired -1.7 -2,508.2 -41.7 -0.1 0.0 

Net purchase price for project company 1,006.7 8,756.3 11,761.2 10,996.7 0.0 


Property 2,760.8 102,881.3 164.2 45,608.2 4,467.6 

Other non-current assets 28.6 486.8 2,609.8 0.0 19.4 

Current assets 2.9 2,155.5 1,532.3 731.4 969.1 

Non-current liabilities -341.5 -9,189.3 -0.3 -4,132.6 -1,261.1 

Current liabilities -0.5 -56.7 -780.0 -145.1 -1,076.2 



Revenues 0.0 482.5 971.4 618.3 0.0 

Revaluation 0.0 78,740.4 0.0 6,208.2 0.0 

Operating profit (EBIT) -2.7 78,932.0 -256.3 7,606.7 -384.3 

Financial results -40.5 -429.6 1.6 -685.9 32.7 

Income taxes 10.7 -7,851.1 50.9 -1,390.7 18.6 

Net profit for the period -32.5 70.651.4 -203.8 5,530.1 -333.0

Segment SEE SEE SEE SEE SEE 

Location of property Romania Romania Romania Romania Romania 

S.C. Meteo Klyos Media SBACARO Logistic Contractor FMZ TM 

Company Business Park s.r.l. s.r.l. s.r.l. s.r.l. s.r.l. 

Initial consolidation 27.7.2006 4.8.2006 15.12.2006 18.12.2006 22.12.2006 





Property 9,849.6 12,035.4 0.0 0.0 0.0 

Financial liabilities -4,797.9 0.0 0.0 0.0 0.0 

Financial liabilities, limited partnership interest 0.0 0.0 0.0 0.0 0.0 

Trade accounts payable -46.1 -8,929.1 0.0 0.0 0.0 

Other liabilities -3,669.9 -3,123.6 0.0 -3.5 0.0 

Deferred tax liabilities -663.5 0.0 0.0 0.0 0.0 

Currency translation adjustment -198.5 8.1 0.1 -20.0 0.1 

Minority interest 0.0 -3.0 0.0 0.0 0.0 

Acquired net assets 3,034.7 34.7 0.1 -23.4 0.1 

(Negative) goodwill 1,472.0 46.2 0.0 4,181.7 0.0 

Outstanding purchase price 0.0 0.0 0.0 0.0 -112.1 

Purchase price paid in cash 4,506.7 80.9 0.1 4,158.3 -112.0 

Less cash and cash equivalents acquired -2,377.1 -0.7 0.0 0.0 0.0 

Net purchase price for project company 2,129.6 80.2 0.1 4,158.2 -112.0 


Property 29,951.5 48,257.5 2,167.4 10,320.1 1,842.2 

Other non-current assets 1,548.3 0.0 6.0 3.9 6.3 

Current assets 1,745.5 609.0 39.0 139.5 56.0 

Non-current liabilities -3,798.4 -6,515.0 0.0 0.0 -0.2 

Current liabilities -4,978.4 -4,292.2 -3.1 -9.9 -118.1 



Revenues 0.0 0.0 0.0 0.0 0.0 

Revaluation 19,084.7 32,543.7 0.0 0.0 0.0 

Operating profit (EBIT) 19,105.5 32,466.2 -8.7 -4,258.4 -36.1 

Financial results -45.1 -0.1 -30.4 35.8 -1.5 

Notes 

Income taxes -3,021.0 -5,285.1 5.9 3.8 6.0 

Net profit for the period 16,039.3 27,181.0 -33.3 -4,218.8 -31.6 












Location of property Romania Romania Romania Romania Romania 

S.C. Arbor S.C. IE Baneasa Eye Shop Log Center IMMOEAST Iride 

Company Corporation s.r.l. Project s.r.l. Targu Jiu s.r.l. Ploiesti s.r.l. IV Project s.r.l. 

Initial consolidation 29.1.2007 1.2.2007 19.2.2007 19.2.2007 1.3.2007 





Property 626.5 0.0 771.5 3,921.3 0.0 

Financial liabilities 0.0 0.0 0.0 0.0 0.0 

Trade accounts payable 0.0 0.0 0.0 -3.3 0.0 

Other liabilities -3,979.4 0.0 -1,479.7 -3,900.6 0.0 

Deferred tax liabilities 0.0 0.0 -115.3 -6.1 0.0 

Minority interest 1.0 0.0 0.0 0.0 0.0 

Acquired net assets -8.8 0.0 8.1 15.7 0.0 

(Negative) goodwill 33.4 61.8 -8.1 -15.7 0.0 


Purchase price paid in cash 24.6 61.8 0.0 0.0 0.0 

Less cash and cash equivalents acquired -3,337.9 0.0 -715.9 -3.8 0.0 

Net purchase price for project company -3,313.3 61.8 -715.8 -3.8 0.0 


Property 4,708.5 22,045.2 788.4 4,007.1 5,265.2 

Other non-current assets 13.9 0.0 0.0 2.3 0.7 

Current assets 116.3 16,227.9 116.6 54.7 38.5 

Non-current liabilities 0.0 0.0 0.0 -146.2 -2.2 

Current liabilities -665.4 -19,934.9 -177.6 -2,145.9 -5.7 

Proportional share of net assets 4,173.2 18,338.2 727.5 1,772.1 5,296.6 


Revenues 0.0 0.0 0.0 0.0 0.0 

Revaluation 0.0 0.0 0.0 0.0 0.0 

Operating profit (EBIT) -220.4 -20.2 -0.1 -27.6 9.0 

Financial results 3.7 -73.3 -7.3 -5.1 -70.8 

Income taxes 12.6 -3.7 0.0 3.8 -1.5 

Net profit for the period -204.1 -97.1 -7.5 -28.9 -63.3


Location of property Romania Romania Romania Slovenia Slovenia 

S.C. Union S.C. Valero S.C. Baneasa Alpha real Beta 

Company Investitii S.r.l. Invest s.r.l. 6981 s.r.l. d.o.o. real d.o.o. 

Initial consolidation 7.3.2007 20.3.2007 5.4.2007 30.9.2006 30.9.2006 


Cash and cash equivalents 126.9 18,041.4 701.5 87.5 32.5 

Receivables and other assets 103.6 1,015.9 900.1 74.2 18.6 


Property 8,659.7 17,954.9 38,478.7 15,569.9 6,940.5 

Financial liabilities 0.0 -3,113.2 -10,317.4 0.0 0.0 

Trade accounts payable -120.3 -199.8 -680.1 -18.1 -104.3 

Other liabilities -1,180.4 -21,788.1 -1,369.3 -19.7 -7.3 

Provisions -2.2 0.0 0.0 -15.5 -14.1 

Deferred tax liabilities -1,221.8 -1,812.5 -4,176.9 -1,540.8 -619.5 



(Negative) goodwill 2,429.3 466.0 2,368.5 1,378.5 611.3 



Less cash and cash equivalents acquired -126.9 -18,041.4 -701.5 -87.5 -32.5 

Net purchase price for project company 8,709.0 -7,264.5 25,851.6 15,584.1 7,009.8 


Property 9,057.3 21,624.0 40,213.1 21,943.8 9,385.5 

Other non-current assets 2,486.7 476.2 2,758.8 1,459.2 675.3 

Current assets 283.8 2,449.5 1,636.3 968.6 448.9 


Current liabilities -1,563.0 -1,547.5 -2,015.3 -263.2 -203.2 



Revenues 0.0 117.5 59.7 758.1 354.9 

Revaluation 0.0 3,201.4 0.0 6,373.8 2,444.9 

Operating profit (EBIT) 15.4 3,226.6 85.0 6,815.9 2,590.1 

Financial results -4.6 -60.4 -9.8 -0.1 -0.1 

Income taxes 0.7 -516.9 -12.0 -1,785.9 -768.1 

Net profit for the period 11.5 2,649.2 63.1 5,029.9 1,821.9 

For the CEE, CIS and SEE segments, the following table shows the acquired assets and liabilities at fair value as well 

as the consolidated proportional share of net assets at the individual company level as of the balance sheet date and 

the income statement of the companies for the period from the acquisition date to the balance sheet date, which are 

included in the consolidated financial statements: 

Notes 











Segment 


CEE CIS SEE 

Holding company, 

other and 

Group eliminations Total 

Cash and cash equivalents 12,763.3 1,298.8 32,674.8 878.0 47,614.9 

Receivables and other assets 19,069.4 19,186.3 53,451.4 2,603.4 94,310.5 

Deferred tax assets 2,406.9 702.7 771.9 411.4 4,292.9 

Property 413,079.0 348,747.7 177,271.6 29,069.2 968,167.5 

Financial liabilities -133,683.7 -8,415.2 -43,859.2 -4,098.9 -190,057.1 

Trade accounts payable -5,959.8 -153.9 -11,626.7 -513.3 -18,253.7 

Other liabilities -58,723.3 -44,589.1 -90,093.5 -1,956.0 -195,361.9 

Provisions -488.3 -67.9 -55.8 -18.1 -630.0 

Deferred tax liabilities -57,392.7 -71,868.7 -17,000.5 -3,432.5 -149,694.4 

Currency translation adjustment 1,145.8 2,636.5 323.4 -6,556.7 -2,451.0 

Minority interest 0.0 0.0 -1,233.0 -6,166.5 -7,399.5 


(Negative) goodwill 72,075.4 18,298.5 8,194.0 102,087.3 200,655.1 

Outstanding purchase price -58.3 0.0 -112.1 -50,687.0 -50,857.4 


Less cash and cash equivalents acquired -12,763.3 -1,298.8 -32,674.8 -878.0 -47,614.9 

Net purchase price for project company 251,470.4 264,476.9 76,031.5 60,746.4 652,725.1 


Property 748,504.3 397,463.5 384,698.3 0.0 1,530,666.1 

Other non-current assets 64,987.2 53,752.9 15,488.0 128,094.5 262,322.5 

Current assets 60,716.5 13,372.8 85,106.1 2,565.2 161,760.7 


Current liabilities -30,871.7 -3,853.0 -45,275.8 -31,267.6 -111,268.1 

Proportional share of net assets 539,971.6 375,514.4 367,594.1 76,132.7 1,359,212.9 


Revenues 16,865.0 24,726.6 3,363.8 0.0 44,955.4 

Revaluation 99,420.3 49,447.4 148,597.2 0.0 297,464.9 

Operating profit (EBIT) 94,702.9 65,663.0 145,385.2 -9,431.6 296,319.6 

Financial results -5,897.8 -2,390.8 -1,648.5 -4,515.2 -14,452.3 

Income taxes -22,183.4 -16,029.6 -20,484.0 -492.0 -59,188.9 

Net profit for the period 66,621.7 47,242.7 123,252.8 -14,438.8 222,678.4 

The carrying values of the individual assets and liabilities as defined in IFRS 3.67(f) are not provided because this 

information is impracticable to develop. 

Estimates for the revenues and profit or loss of acquired companies based on an assumed acquisition at the beginning 

of the reporting period is not provided because this information is impracticable to develop (IFRS 3.70).

2.3.5 Structural changes/change in consolidation method 

Structural changes represent the impact of shifts in investments in other companies between the parent company 

(IMMOEAST) and the minority shareholders of the relevant consolidated subsidiaries or companies included through 

proportionate consolidation which, in turn, have their own consolidated companies with minority interests. The term 

structural changes also includes the acquisition of shares in companies with minority interests, where these acquisitions 

have an impact on group equity, as well as 

partial deconsolidation measures and successive 

All amounts in TEUR Atom Centrum a.s. 

share purchases without transition consolidations 

that lead to a shift in the earned equity (either 

from the group’s share to minority interest, or the 

reverse) of enterprises in which the company that 

is partially deconsolidated has a controlling or joint 

management interest as defined in IAS 31. 



Deferred tax assets 

Property 

Tangible assets 



903.1 

603.4 

288.9 

28,607.5 

0.9 

-7,431.1 

-28.3 

The investment in Atom Centrum a.s. (office building 

Pankrac House) was increased from 50% to 100% 

as of 27 June 2006, which resulted in a changeover 

from proportionate to full consolidation. The impact 

of the transition consolidation of this company is 

shown in the following table. 

Provisions 



Currency translation adjustment 

Acquired net assets 

(Negative) goodwill 

Outstanding purchase price 

0.0 

-499.5 

-4,941.6 

-1,121.9 

16,381.5 

7,606.0 

0.0 

Total purchase price 23,987.5 


Net purchase price for Atom Centrum a.s. 23,084.4 

In addition, IMAK CEE N.V. and IMAK Finance B.V. 

were acquired in full, these companies were founded 

in 2004/05 as joint venture between IMMOEAST 

and the Akron Group, an Austrian property developer. 

IMMOEAST owned 56.6% of the shares up 

to this transaction. The purchase of the remaining 

shares resulted in a changeover from porportionate 

to full consolidation for these companies during the 

first quarter of the reporting year. The impact of the 

transition consolidation of the companies is shown 

in the following table. 

Notes 

All amounts in TEUR IMAK companies 



Deferred tax assets 1,394.9 


Tangible assets 44.3 


Trade accounts payable -1,606.3 

Provisions -1,877.6 





Outstanding purchase price -3,475.2 

Total purchase price 59,199.1 


Net purchase price for property companies 56,325.7 











IAS 21.21 

IAS 21.28 

IAS 21.28 in 

connection 

with IAS 21.9 

IAS 21.47 

IAS 21.48 

SIC-7 

IMMOEAST carried out a downstream merger during the second quarter of 2006/07, by merging Immoeast Cora Holding 

s.r.l. into Cora GS s.r.l. as of 21 September 2006. 

As of 1 November 2006 the investments in Mester Park Ost Bt. and Mester Park Kft. were increased from 45% to 75%, 

and the accounting procedure was changed from the equity method to full consolidation. 

An upstream merger was carried out during the third quarter of 2006/07 With the merger of Mistral Real Sp. z o.o. 

into Blizzard Real Sp. z o.o. as of 29 January 2007. 

2.4 Foreign currency translation 

The individual Group companies record foreign currency transactions at the average exchange rate in effect on the 

date of the event. Monetary assets and liabilities denominated in foreign currencies are translated on the balance 

sheet date at the average exchange rate in effect on this date. Any resulting foreign exchange gains or losses are 

recognised to the income statement for the reporting year. 

The Group currency is the EURO. For subsidiaries or associated companies that prepare their financial statements in 

a foreign currency, the determination of the functional currency is based on the primary (macro)economic environment 

in which each company operates. The determining factor is the currency in which the majority of cash flows, 

goods and services are denominated and settled in the relevant country. For the IMMOEAST companies affected by 

this regulation, the local currency is the functional currency in all cases. In accordance with IAS 21 and in keeping 

with the functional currency concept as reflected in the modified current rate method, the assets and liabilities in 

the financial statements that were converted to IFRS – and in the case of acquisitions, also revalued and prepared for 

consolidation – are translated at the average exchange rate on the balance sheet date; the various positions on the 

income statement are translated at the weighted average exchange rate for the reporting year. Goodwill allocated to 

a foreign subsidiary or company included through proportionate consolidation is translated at the closing rate. The 

equity of subsidiaries and companies included through proportionate consolidation as well as the investments in any 

other foreign entities in foreign currencies are translated at the historical exchange rate at the point of initial consolidation. 

Distributions in a foreign currency are translated at the average exchange rate for the purpose of elimination. 

The components of earned (historical) group equity of foreign entities that present their financial statements in a 

foreign currency are translated at the closing rate. Any resulting foreign exchange gains and losses are recorded to 

the currency translation adjustment in equity. 

On the disposal of a foreign operation, the cumulative exchange differences deferred in the separate component of 

equity for this foreign operation are recognised to profit or loss during the same period in which the gain or loss on 

the disposal is recognised. 

Companies located in member countries of the European Union are required to apply the rule defined by IAS 21 for 

the settlement and translation of annual financial statements from their national currency into the Euro – assets and 

liabilities must still be translated at the closing rate, accumulated exchange differences remain in equity and differences 

arising from the translation of liabilities denominated in the foreign currencies of the member states may not 

be charged or credited to the carrying amount of the related asset.

The following exchange rates, which were issued by Constantia Privatbank AG on 30 April 2007, were used for 

translation: 

HUF PLN CZK ROL RON 

Closing rate on 30 April 2007 247.180000 3.781000 28.123000 33293.000000 3.329300 

Average rate 255.630000 3.827850 28.271500 34021.500000 3.402150 

CYP SKK EEK BGN USD 


Average rate 0.579300 35.561000 15.646600 1.955800 1.307100 

CHF RUB HRK UAH BAM 


Average rate 1.608550 34.570000 7.361500 6.688975 1.951550 

CSD SEK 

Closing rate on 30 April 2007 81.309000 9.152300 

Average rate 83.460000 9.177000 

The Romanian currency was redenominated from ROL (Romanian Leu) to RON (new Romanian Leu) on 1 July 2005, 

whereby 10,000 ROL equal 1 RON. This change was authorised by Law Nr. 348 dated 14 July 2004, which was published 

in the Romanian federal gazette (“Monitorul Oficial al României”) on 23 July 2004. 

The Bulgarian and Estonian currencies are tied to the Euro through a currency board (the domestic currency is tied 

to the foreign currency on a one-sided basis). Prior to the introduction of the Euro, these countries had a currency 

board with the D-Mark. On 5 July 1999 the Bulgarian currency (Lew) was converted at a ratio of 1 new Lew for 1,000 

old Lewa and tied to the German Mark (1 Lew = 1 DM). After the introduction of the Euro, the exchange rate for conversion 

of the Lew into Euro exactly equalled the DM – Euro rate. This exchange rate (1 EUR = 1.9558) is defined by 

Bulgarian law and does not change. The Estonian currency (Krone) was introduced in the newly independent Estonia 

after the collapse of the Soviet Union in 1992. After 1993 the Estonian Krone was linked to the D-Mark and this rate 

was maintained following the introduction of the Euro. The current exchange rate is 1 EUR = 15.6466. 

Notes 











IAS 21.1 

IAS 21.32 

IAS 38.8 

IAS 38.12 

(a), (b) 

IAS 38.24 

IAS 38.33 

IAS 38.34 

IAS 38.111 

3. Accounting and valuation principles 

3.1 Change in accounting and valuation methods 

In contrast to the published consolidated financial statements as of 30 April 2006, this annual report applies the 

revised IAS 21 as amended on 15 December 2005. The objective of this standard is to regulate the inclusion of transactions 

in foreign currencies and foreign operations in the financial statements of an entity, and also define how to 

translate financial statements into a presentation currency. In accordance with IAS 21 (revised 2005), foreign 

exchange gains and losses arising from long-term intercompany loans with indefinite repayment periods may no 

longer be recognised to the income statement through profit or loss but must be recognised directly in equity. These 

foreign exchange gains and losses are shown on the statement of changes in shareholders’ equity under the position 

“foreign exchange gains/losses according IAS 21.32”. Foreign exchange gains and losses arising from long-term 

intercompany loans relate to receivables and/or liabilities that may be called at any time. Therefore, these items do 

not meet the requirements of IAS 21.32 and are recognised to the income statement through profit or loss. 

3.2 Intangible assets 

Additional information on intangible assets is provided under point 4.3.1. 

IAS 38 defines intangible assets as identifiable, non-monetary assets without physical substance, which can be 

expected to generate a future economic benefit. The three characteristics of intangible assets are: identifiability, 

control (over the use of the asset) and future economic benefit (income or future cost savings). The identifiability of 

intangible assets is coupled either with the capability of being sold or transferred (either alone or together with other 

assets or liabilities) or with a contractual or legal right. In accordance with IAS 38, intangible assets are carried at 

cost less amortisation. 

If an intangible asset is acquired in a business combination in accordance with IFRS 3, the cost of this asset equals 

its fair value on the date of acquisition. The value of the intangible asset is subsequently reassessed in connection 

with the recognition of the business combination. The acquirer must record the intangible assets of the acquired 

company separately from goodwill as of the acquisition date, independent of whether the asset was recognised or 

not recognised by the acquired company prior to the business combination. In this case, the cost of the intangible 

asset is identical to fair value as of the acquisition date. The fair value of an intangible asset reflects the market 

expectations for the probability that the future economic benefits embodied in the asset will flow to the acquirer. The 

only circumstances in which it might not be possible to reliably measure the fair value of an intangible asset are when 

the asset is not separable from the entity, or there is no reliable data on exchange transactions for the same or similar 

assets and the estimate of fair value would be dependent on immeasurable variables. 

All intangible assets – with the exception of goodwill – have a finite useful life and are amortised on a systematic 

basis. 

Ordinary straight-line amortisation is based on the following useful lives: 

Useful life in years 

Other intangible assets 3-50 

In addition, intangible assets are tested for impairment in accordance with IAS 36.

Subsequent expenditures on an intangible asset after its acquisition or completion are expensed as incurred unless: 

it is probable that these expenditures will enable the asset to generate a future economic benefit which exceeds the 

originally estimated earning power, and these expenditures can be estimated reliably and exactly allocated to the 

asset. The company has no internally generated intangible assets. 

3.3 Differences arising from the consolidation 

3.3.1 Goodwill 

Additional information on goodwill is provided under point 4.3.2. 

The difference between the cost of a business combination and the proportional share of revalued net assets as of the 

acquisition date is recorded as goodwill and recognised as an asset in accordance with IFRS 3. Goodwill represents a 

payment made by the acquirer in anticipation of future economic benefits to be gained from assets that cannot be 

individually identified or separately recognised. Goodwill is not amortised on a regular basis, but is tested for impairment 

each year or on an interim basis if there are signs of a loss in value. Goodwill does not generate cash flows that 

are independent of the cash flows of other assets or groups of assets and often contributed to the cash flows of several 

cash-generating units. For this reason, goodwill is assigned to cash-generating units for the purpose of impairment 

testing. The need to recognise an impairment charge to a cash-generating unit is determined by comparing the 

carrying value with the recoverable amount. If the recoverable amount is less than the carrying value, an impairment 

charge is recognised at the amount of this difference to reduce the carrying amount to the recoverable amount. Any 

remaining difference is allocated to the other assets in the cash-generating unit in proportion to their carrying values. 

The allocation of an impairment charge to individual assets may not reduce the carrying value of the asset below the 

highest of the following amounts: a) fair value less costs to sell, b) value in use, and c) zero. All impairment charges 

are recognised immediately to the income statement. Subsequent increases in value are not permitted. 

The unit or group of units to which goodwill is assigned for the impairment test represents the lowest level of the 

company at which the goodwill is monitored for management purposes, and is not larger than a segment determined 

in accordance with IFRS 8 or IAS 14. For the purpose of impairment testing, the carrying value of the cash-generating 

unit is increased by the carrying value of the goodwill. This total is compared with the recoverable amount of the 

cash-generating unit in a next step, and any negative difference results in an impairment charge to goodwill. The 

recoverable amount of the cash-generating unit comprises the fair value of the property as determined by an expert 

opinion plus the fair value of deferred tax liabilities. 

The acquisition of project companies generally leads to positive goodwill because of the obligation to record deferred 

tax liabilities on revalued properties. The unequal valuation of these deferred tax liabilities – which, in contrast to 

other acquired net assets, may not be discounted – results in goodwill as a technical figure. In creating the cash-generating 

unit, the carrying values of the deferred tax liabilities recognised on property are added together with the 

assets and goodwill, and compared with the recoverable value of the unit. The deferred tax liabilities are represented 

in the cash-generating unit at a recoverable value of zero. This reflects the fact that – although property transactions 

normally take the form of share deals – the deduction of deferred tax liabilities on the purchase and sale of property 

companies is generally difficult or impossible to enforce in the markets in which IMMOEAST is active. The inclusion of 

deferred tax liabilities in the carrying value of cash-generating units represents a modification of the impairment tests 

performed on goodwill in previous years. This modification is based on the fact that nearly 100% of all property transactions 

are executed as share deals and the buyer must assume the deferred tax liabilities on such transactions. 

Notes 










IAS 38.60 

IFRS 3.51 

IFRS 3.54 in 

connection 

with IAS 36.96 

IAS 36.90 

IAS 36.104 

IAS 36.105 

IAS 36.80 

IFRS 3.57b in 

connection 

with IFRS 3.B 

16 (i) & IAS 

12.53


IFRS 3.57 

IFRS 3.56(a) 

3.3.2 Excess of acquirer’s interest in the net fair value of acquiree’s identifiable assets, liabilities and 

contingent liabilities over cost (excess) 

A consolidation will lead to negative differences (negative goodwill or excess) when the cost of a business combination 

is less than the proportional share of revalued net assets acquired. In such cases, IFRS 3.56 (a) requires that the 

acquirer reassess the identification and measurement of identifiable assets, liabilities and contingent liabilities as 

well as the cost of the business combination. Any excess remaining after the reassessment must be recognised 

immediately to the income statement as required by IFRS 3.56 (b). The IASB sees three reasons for a gain recognised 

under these circumstances: a) errors in identification and measurement, b) the application of standards for the measurement 

of assets and liabilities that do not reflect the fair value of these items and c) a bargain purchase. 

Negative goodwill recognised in the financial statements of IMMOEAST is comprised exclusively of goodwill as 

defined in IAS 3.57 (c) – bargain purchases. Identification and measurement errors are eliminated during the reassessment, 

and the application of standards for the measurement of assets and liabilities at amounts that do not 

reflect fair value leads to effects that counteract the generation of an excess or reduce this excess. This latter effect 

is caused by the prohibition on discounting defined by IFRS 3.57b in connection with IFRS 3.B16 (i) and IAS 12.53, 

which affects the deferred tax liabilities in the category summarised under this item. 

Bargain purchases can result from the following factors: 

a) When a forward purchase is executed, the acquisition price for a property company is determined for a specific 

point in the future. A decline in the market yield for this property before the acquisition date leads to a fair value 

that can exceed the price defined in the contract by a substantial amount, and thereby leads to an excess. 

b) Business combinations of minority interests that cannot be consolidated but, at the same time, include a call 

option for IMMOEAST at a fixed yield that is determined in advance can lead to an excess if the market yield 

declines at the time of the business combination. 

c) The following circumstances can also lead to an excess: A property company is acquired and the objects owned by 

this company have a high vacancy rate at the time the contract is signed, this situation is reflected in the purchase 

price. If the objects are fully let, or nearly fully let, prior to the transfer of legal ownership (closing), this will result 

in a higher fair value at the time of closing, which can lead to an excess. 

d) When companies with development projects are acquired, the strategic risk premium that forms the basis for the 

acquisition and has been accepted by the seller can be higher than the risk premium determined by the market. 

The fair value of the property can therefore be higher than the value on which the contract negotiations were based 

– and that can lead to an excess. 

e) When a property company is purchased, negotiations can result in a premium over and above the general market 

yield. The fair value of the property can therefore be higher than the price agreed with the seller – which, in turn, 

can lead to an excess. 

f) In the case of a joint venture, where a former contract partner transfers his share to the group and, in turn, the 

group subsequently has sole control over the assets of the former joint venture, the group can generally purchase 

the net assets at a price below market value. The reason for this is that the seller (former joint venture partner) is 

frequently unable to find a buyer for his share in the joint venture, and this situation has a favourable impact on 

the purchase price to be paid by the buyer.

3.4 Investment property 

Additional information on investment property is provided under point 4.1. 

Investment properties represent all objects that are held to generate rental income or to realise a long-term increase 

in value, and are not used in production or for administrative purposes or sold as part of the ordinary business 

activities of the company. Land and/or buildings, or parts thereof, can also represent investment property. Properties 

used in the production of goods or provision of services, as well as for administrative purposes, do not represent 

investment property as defined in IAS 40. Land that is purchased as a site for the construction of investment property 

is classified as IAS 40 property on the date of acquisition and subsequently measured at fair value. 

In accordance with IAS 40, investment properties are measured at cost plus transaction costs at the point of recognition. 

These costs may not include any founding or start-up costs or operating losses incurred before the investment 

property reaches the planned level of occupancy. For subsequent measurement, this standard provides companies 

with an option to choose either the cost model or the fair value model. Up to 30 April 2005 IMMOEAST recorded 

investment property in accordance with the cost model. In keeping with this model, properties were recorded at cost 

less ordinary straight-line depreciation and any necessary impairment charges. As of 31 January 2006 the management 

of IMMOEAST AG decided to follow the EPRA´s Best Practices Policy Recommendation 2.11, which advise EPRA 

members to follow the fair value model defined in IAS 40, based on this decision, the consolidated financial statements 

were adjusted retrospectively in accordance with IAS 8.22 to reflect the application of the fair value model 

defined in IAS 40.33. 

In accordance with the fair value model, properties are carried at their fair value as of the balance sheet date. Fair 

value is defined as the amount at which a property could be exchanged between knowledgeable, willing parities in 

an arm’s length transaction. All changes in fair value are recognised to the income statement. The properties are no 

longer depreciated on a regular basis, but measured each year at their fair value. As stated in IAS 36.2 (f), the regulations 

for impairment tests are not applicable because investment properties are measured at fair value and gains or 

losses in fair value are recognised to the income statement. 

Fair value must reflect the current market situation and circumstances as of the balance sheet date. The best evidence 

of fair value is normally provided by prices quoted on an active market for similar properties that have a similar 

location and conditions as well as comparable rental and other contractual relationships. The fair value of IMMOEAST 

properties is determined by expert opinions, which are prepared by independent valuation experts. The function of 

the independent expert is filled by the member companies of the Colliers International Group for the CEE and SEE 

segment and DTZ Debenham Zadelhoff for the CIS segment. 

Investment properties are valued using the discounted cash flow method, specifically in the form of the term and 

reversion model. Under this model, current rental income up to the end of the contract term is discounted back to 

the valuation date, a comparable market rent is then applied, capitalised and also discounted back to the valuation 

date to determine the perpetual yield (reversion). Depending on the estimates for risk – which are based on the type 

of property, location and region as well as current market circumstances – different discount rates are used applied 

to current rental income and the capitalisation of the perpetual yield. The capitalisation also includes any vacancies 

as well as the perpetual yield based on an appropriate period of time for rental and comparable market rental prices 

and an assumed maximum occupancy that is derived from the above-mentioned criteria. 

Notes 










IAS 40.5 

IAS 40.20 & 

IAS 40.23 

IAS 40.30 

IAS 8.22 

IAS 40.33 in 

connection 


IAS 40.38 

IAS 40.45


IAS 40.55 

IAS 16.15 

IAS 16.19(d) 

IAS 40.33 

IAS 40.65 

IAS 36.2 

IAS 16.15 

IAS 16.23 

IAS 20.1 

IAS 20.24f 

Land was valued under the assumption that only the earnings potential of the site and not the earnings potential of 

the object to be constructed form the basis for the recognition of revaluation income. The residual value method of 

the income approach was used to value land, and the resulting residual value represents the fair value of the land. 

Investment properties that were acquired for possible redesign and renovation (redevelopment) are also valued 

using the residual value method. The classification as investment property is not changed by this redevelopment. 

When a property is carried at fair value, this same approach must be retained up to disposal even if comparable 

market transactions occur less often or market prices are not available as often. 

3.5 Property under construction 

Additional information on property under construction is provided under point 4.1.2. 

Properties constructed by the company for the generation of rental and/or leasing income or for the realisation of an 

increase in value are recognised as properties under construction and measured at cost. For this purpose, cost 

includes expenses incurred up to the completion of construction or development. In accordance with IAS 16.19, 

administrative expenses and other overheads are not included in acquisition or production cost. IAS 16 is applied up 

to completion and the start of operations in the property. Beginning with the date of completion, the property is 

measured at fair value in accordance with IAS 40. Any difference between the fair value of the property at this time 

and the previous carrying value is recognised to the income statement as required by IAS 40.65. Since the revaluations 

are generally considered to be material, they are shown on the same line of the income statement as other 

income from the revaluation of investment properties. 

Properties under construction are tested for impairment each year in accordance with IAS 36, whereby cost is compared 

with the fair value (value in use) determined by an expert opinion. Additional information on the determination 

of fair value is provided under point 3.4. 

3.6 Tangible assets 

In accordance with IAS 16, tangible assets are carried at cost less accumulated depreciation and any necessary writedowns 

that result from impairment tests. Acquisition or production cost includes all costs incurred to bring the asset 

to the location and condition necessary for it to be capable of operating in the intended manner. Cost includes not 

only the purchase price, but also expenses incurred for site preparation, initial deliveries and handling costs, installation 

and assembly costs and professional fees as well as estimated costs for dismantling and removing the object 

and restoring the site. 

When the payment for a tangible asset extends beyond the normal payment period, interest expense at market rates 

is also recognised or included. 

Depreciation is calculated on a straight-line basis beginning in the month of acquisition. 

Government grants represent assistance provided to an entity through the transfer of resources in return for past or 

future compliance with certain conditions relating to the operating activities of the entity. Government grants relating 

to assets, including non-monetary grants at fair value, must be recorded on the balance sheet as deferred income or 

deducted in determining the carrying value of the asset.

Financing costs are capitalised in accordance with IAS 23 if they are related to the acquisition or production of qualified 

assets. Borrowing costs include interest and other costs incurred by an entity in connection with the borrowing 

of funds. The capitalisation of borrowing costs ends with the completion of the asset. 

Ordinary straight-line depreciation on depreciable tangible assets is based on the following useful lives: 

Useful life in years 

Property (buildings) 25-50 

Other tangible assets 4-10 

The useful lives of the various assets and the depreciation method are reviewed regularly in agreement with IAS 16 

to ensure that they reflect the expected development of the economic value in use of the tangible asset. 

3.7 Non-current assets held for sale (IFRS 5) 

Additional information on non-current assets held for sale is provided under point 4.1.3. 

IFRS 5 classifies assets as held for sale if they can be sold in their present condition and their sale is highly probable. 

The involved assets represent non-current items. These assets are no longer depreciated on a regular basis, but are 

measured at the lower of carrying value at the point of classification as held for sale and fair value less costs to sell. 

The requirements for classification as held for sale are: a) the existence of a concrete intention to sell, b) the immediate 

availability of the asset and c) with certain exceptions, the completion of the sale within twelve months. 

If the requirements for classification as held for sale are no longer met, the asset is transferred to the appropriate 

balance sheet position and measured at the lower of carrying amount and fair value less costs to sell. Any adjustment 

to the value of the asset is recognised to the income statement. Investment properties represent an exception to the 

valuation requirements set forth in IFRS 5 because these assets are valued in accordance with the fair value model 

(IFRS 5.5 (d)). However, the presentation requirements defined in IFRS 5 apply. 

3.8 Inventories 

Additional information on inventories is provided under point 4.8. 

Inventories represent assets that are held for sale during the ordinary course of business, or are in the process of 

production for such sale, or take the form of materials or supplies to be consumed in the production process or in the 

rendering of services. 

The business activities of IMMOEAST as a property company include the acquisition, rental and best possible commercial 

utilisation of assets to optimise asset management. The properties held for sale by the IMMOEAST subsidiaries 

during the course of ordinary business operations do not fall under the scope of application of IAS 40 (investment 

properties), and are therefore treated as inventories in accordance with IAS 2. 

Inventories are capitalised at cost and measured at the lower of carrying value or net realisable value as of the balance 

sheet date. Net realisable value is determined as the estimated selling price less any outstanding production 

Notes 










IAS 23.10-11 

IAS 23.4 

IFRS 5.1 

IFRS 5.25 

IFRS 5.15 

IFRS 5.6-8 

IFRS 5.5 (d) 

IAS 2.6 

IAS 2.10


IAS 17.7 

IAS 17.4 

IAS 17.10 

IAS 17.20 

IAS 17.49-51 

IAS 40.6 

IAS 17.15f 

costs and costs to sell. The acquisition or production cost of inventories includes all purchase and processing costs 

as well as other expenses incurred to bring the asset to the current location and condition. 

Sales of inventories are included in revenues, whereby revenue is realised when ownership is transferred. In the 

event of a sale, the production costs are recorded as a disposal under the cost of materials. 

3.9 Leasing 

In keeping with IAS 17, the allocation of a leased asset to the lessor or lessee is based on the transfer of all material 

risks and rewards incident to ownership of the asset. 

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. 

All other leases are classified as operating leases. 

Situations that normally lead to the classification of a lease as a finance lease include: 

• The lease transfers ownership of the asset to the lessee by the end of the lease term; 

• The lessee has the option to purchase the asset at a price that is expected to be sufficiently lower than fair value 

at the date the option becomes exercisable and it is therefore reasonably certain, at the inception of the lease, that 

the option will be exercised; 

• The lease term covers the major part of the economic life of the asset, even if title is not transferred; 

• At the inception of the lease, the present value of the minimum lease payments amounts to at least substantially 

all of the fair value of the leased asset; and 

• The leased asset is of such as specialised nature that only the lessee can use it without major modifications. 

Assets obtained through finance leases are capitalised at the fair value or lower present value of the minimum lease 

payments from the viewpoint of the lessee, and amortised on a straight-line basis over the shorter of the presumed 

useful life or term of the lease agreement. Payments required on operating leases are recognised to the income statement 

in equal instalments over the term of the lease. 

Under operating leases, economic ownership remains with the lessor. The lessee recognises the lease payments as 

an expense, generally on a straight-line basis over the term of the lease. The lessor retains the leased item as an 

asset on its balance sheet, and measures this asset in accordance with normal requirements. Lease income is generally 

distributed on a straight-line basis over the term of the lease. Contract and similar costs are expensed analogously 

over the term of the lease. 

IAS 40.6 gives companies an option to classify property that is held through an operating lease as investment property 

if the fair value model is used and the property otherwise meets the definition of an investment property. This 

classification alternative may be elected for individual objects. 

In the classification of leases for land and buildings, the land and building elements are normally considered separately. 

The minimum lease payments are allocated to the land and building elements in proportion to their relative 

fair value. The land element is normally classified as an operating lease unless title is expected to pass to the lessee 

by the end of the lease term. The building element is classified as a finance or operating lease according to the criteria 

presented in IAS 17. However, separate measurement of the land and building elements is not required when the

lessee’s interest in both land and buildings is classified as investment property in accordance with IAS 40 and the 

fair value model is used for recognition and measurement. 

3.10 Financial instruments 

A financial instrument is defined as a contract that gives rise to a financial asset of one entity and a financial liability or 

equity instrument of an other entity. This definition covers securities, receivables, liabilities, equity and derivatives. 

The commentaries to the tables under point 4.5 present the information on financial instruments by class as required 

by IFRS 7.6 as well as the transition calculation to the positions shown on the balance sheet. 

3.10.1 Investments in other companies 

Additional information on investments in other companies is provided under point 4.5. 

Investments in other companies are stated at fair value in accordance with IAS 39. If this amount cannot be determined 

reliably, such investments are reported at cost less any impairment losses. 

Loans granted are generally recorded at cost or the lower present value as of the balance sheet date. 

Securities reported under non-current assets and investments in other companies are classified as available-for-sale 

in keeping with IAS 39, and recorded at their fair value or market value as of the balance sheet date. If fair value cannot 

be determined and comparable market prices are not available, fair value is established using generally accepted 

valuation methods (discounted cash flow method) or, in the case of property companies, according to the net asset 

value. The initial valuation is made as of the settlement date. Fluctuations in fair value are charged or credited directly 

to equity; these changes are only recognised to the income statement in the event of impairment or when the securities 

are sold. If there are objective indications of impairment to an asset, an appropriate write-down is made. 

Upon initial recognition, an entity may elect to recognise a financial instrument at fair value through profit or loss in 

accordance with IAS 39.9. This classification is only permitted when: 

• it eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise from 

measuring assets, or 

• the financial instrument is part of a portfolios whose performance is measured on a fair value basis and information 

is reported internally on this basis to the entity’s key management personnel as defined in IAS 24. 

In addition, IAS 39.11A permits the measurement of certain hybrid financial instruments in their entirety at fair value. 

Financial instruments acquired after 1 May 2004 are generally designated as financial assets at fair value through 

profit or loss in accordance with IAS 39 (see point 4.5), and are measured at fair value as of the balance sheet date. 

Changes in fair value are recognised to the income statement. 

3.10.2 Receivables and other assets 

Receivables and other assets are stated at cost. Recognisable individual risks are reflected in appropriate valuation 

adjustments. 

Notes 










IAS 32.11 

IAS 39.43 

IAS 39.9 

IAS 39.11A 

IAS 39.43


IAS 7.7 

IAS 39.9 

IAS 39.43 

IAS 39.9 

IAS 39.47 

IAS 39. AG27 

IFRS 7.37 requires an analysis of the age of financial assets that are past due as of the reporting date but not impaired 

as well as an analysis of the individual financial assets that are individually determined to be impaired as of the 

reporting date, including the criteria used to determine impairment. Collateral and credit enhancements relating to 

the above-mentioned amounts must also be disclosed (also see point 4.6). 

3.10.3 Current financial instruments 

In accordance with IAS 39, current financial instruments are classified as held for trading and carried as fair value or 

the quoted market price as of the balance sheet date. All purchases and sales are recognised on the settlement date, 

i.e. the date on which the asset is transferred. Temporary fluctuations in market value are recognised to the income 

statement. In accordance with IAS 7.7, current financial instruments are included in cash flow as a component of cash 

and cash equivalents if they have a term of less than three months from the date of acquisition. All assets in the balance 

sheet position meet this criterion as of the balance sheet date. 

3.10.4 Derivative financial instruments 

Additional information on derivative financial instruments is provided under point 8.1.3. 

A derivative is a financial instrument with the following characteristics: 

• Its value changes as a result of the change in the underlying primary financial instrument, e.g. a certain interest 

rate, the price of a financial instruments, commodity price, exchange rate, price or interest rate index, credit rating 

or credit index; 

• It has no purchase cost or only a low purchase cost (compared with other contracts that react to changes in market 

conditions in a similar manner); and 

• It is settled at a future date, whereby settlement frequently takes the form of a net payment or conclusion of a 

counter-transaction. 

Derivatives are recognised as independent transactions. These financial instruments are used to reduce the risks 

associated with foreign exchange and interest rate fluctuations. Derivative transactions are only concluded with 

financial institutions that have first-rate credit standings. 

3.10.5 Financial liabilities 

Financial liabilities are generally measured at amortised cost. Liabilities are recorded at the amount of funds received 

less transaction costs. Any premium, discount or other difference (e.g. costs for the procurement of funds) between 

the amount received and the repayment amount is allocated over the term of the financing according to the effective 

interest rate method and recorded under financial results. The effective interest rate method is not used for immaterial 

differences; these differences are allocated on a straight-line basis over the term of the liability. 

3.10.6 Hybrid financial instruments 

Combined financial instruments, which contain both equity and debt components, must be accounted for separately, 

e.g. convertible bonds or option bonds. Financial instruments may be comprised of a non-derivative host contract 

and a derivative financial instrument. An embedded derivative must be recorded separately from the host contract.

3.10.7 Limited partnership interests 

As stated in IAS 32.18 (b), a financial instrument that gives the owner the right to put back this instrument to the 

issuer for cash or another financial instrument must be classified as a financial liability (“puttable instrument”). 

Shares in partnerships fall under this definition under various legal systems. 

In contrast to the method applied in 2005/06, for business combinations that result the purchase of shares in partnerships, 

the carrying value of such investments is offset against the proportional share of equity during the consolidation 

of equity and not during the consolidation of liabilities. 

3.11 Cash and cash equivalents 

Cash and cash equivalents comprise cash on hand, funds-in-transit and deposits with financial institutions. These 

items are recorded at their actual value as of the balance sheet date. 

3.12 Impairment of assets 

In accordance with IAS 36, impairment tests are performed when there are indications that an asset may be impaired. 

Independent of this practice, goodwill and intangible assets with an indefinite useful life are tested each year for 

signs of impairment. This test is generally performed separately for each asset. The impairment test is only performed 

on the smallest group of assets, the cash-generating unit, in cases where cash inflows cannot be directly allocated 

to a specific asset and an individual valuation is therefore not possible. The cash-generating unit is the smallest 

identifiable group of assets that produces cash inflows, which are largely independent of the cash inflows of other 

assets or other groups of assets. 

As of every balance sheet date all assets must be tested for possible signs of impairment (e.g. the carrying value of 

an asset exceeds the higher of fair value less cost to sell and the value in use). 

IAS 36 defines the recoverable amount as the relevant benchmark for the impairment test. The recoverable amount 

equals the higher of fair value less costs to sell and the value in use. If the carrying value of an asset exceeds the 

recoverable amount, the difference is recognised as an impairment charge. 

Fair value less costs to sell represents the amount obtainable from the sale of an asset or cash-generating unit in an 

arm's length transaction at normal market conditions between knowledgeable and willing parties, less the costs of 

disposal. The costs of disposal are incremental costs directly attributable to the disposal of an asset or cash-generating 

unit, excluding financing costs. 

Value in use is the present value of estimated future cash flows that are expected to arise from the continuing use of 

an asset or cash-generating unit. Cash flow planning must be based on reasonable and justifiable assumptions that 

reflect the entity’s latest financial plans. The determination of value in use is based on the same methodology used 

to establish the value of a company, i.e. the discounted cash flow method. 

Any necessary impairment charge is recognised to the income statement. If there is an indication that an impairment 

loss may no longer exist or may have decreased, the impairment loss is reversed to the carrying amount that would 

have been determined (net of amortisation or depreciation) if no impairment loss had been recognised in prior years. 

This does not apply to goodwill. 

Notes 










IAS 32.18 (b) 

IAS 36.9 & 

IAS 36.10 

IAS 36.9 

IAS 36.19-21 

IAS 36.25-28 

IAS 36.30 

IAS 36.33


IAS 12.15 in 

connection 


IAS 12.5 

IAS 12.15 

IAS 12.24 

IAS 12.74 

IAS 1.51 

IAS 37.14 

3.13 Deferred taxes 

Additional information on deferred taxes is provided under point 4.15. 

In accordance with the balance sheet liability method required by IAS 12, deferred taxes are calculated on all temporary 

differences between the carrying amount of an asset or liability in the IFRS consolidated financial statements 

and its tax base in the individual company financial statements. Temporary differences are differences between the 

carrying value of an asset or liability on the balance sheet and the relevant tax base. Temporary differences can be: 

• taxable temporary differences, which are temporary differences that will result in taxable amounts in the determination 

of taxable profit (tax loss) in future periods, when the carrying amount of the asset or liability is recovered 

or settled; or 

• deductible temporary differences, which are temporary differences that will result in amounts that are deductible 

for the determination of taxable profit (tax loss) in future periods, when the carrying amount of the asset or liability 

is recovered or settled. 

A deferred tax asset or deferred tax liability must be recorded for each taxable temporary difference unless the difference 

arises from the initial recognition of goodwill or the initial recognition of an assets or liability in a transaction 

that: 

• is not a business combination and 

• at the time of the transaction, affects neither accounting profit (before tax) nor taxable profit (tax loss). 

Deferred tax assets must be recognised for all tax loss carryforwards to the extent that it is probable that taxable 

profit will be available against which the deductible temporary difference can be utilised. 

The expected realisable tax credits from the loss carryfowards are also included in this calculation. Deferred tax 

assets and deferred tax liabilities may be offset if the conditions set forth in IAS 12.74 are met: 

a) the entity has a legally enforceable right to offset current tax assets against current tax liabilities, and 

b) the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority. 

The calculation of deferred taxes is based on the tax rates that will apply or are expected to apply in the individual 

countries at the point of realisation. The tax laws enacted or substantively enacted as of the balance sheet date are 

also taken into account. The calculation of deferred taxes for Austrian companies is based on a tax rate of 25%. For 

foreign companies, the relevant local tax rate is applied (see 4.15). In accordance with IAS 1.51, deferred taxes are 

classified as non-current assets or non-current liabilities following the presentation of the balance sheet by term. 

3.14 Provisions and other liabilities 

Additional information on provisions and other liabilities is provided under points 4.12 and 4.13. 

In accordance with IAS 37.14, an obligation arising from past events whose timing or amount is uncertain is recorded 

as a provision when it becomes probable that an outflow of resources will be required to settle this obligation and 

when the amount can be reliably estimated.

The provision is based on the best estimate at the time the financial statements are prepared. The best estimate of 

the amount required to meet the present obligation is the amount the entity would rationally pay to settle the obligation 

at the balance sheet date or to transfer the obligation to a third party at that time. 

The risks and uncertainties that inevitably surround many events and circumstances must be taken into account in 

determining the best estimate. The expected cash flows must be discounted to their present value if the time value 

of money is material. 

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, 

the reimbursement may only be recognised when it is virtually certain that reimbursement will be received if the 

entity settles the obligation. This reimbursement is to be treated as a separate asset. The amount recognised for the 

reimbursement may not exceed the amount of the provision. 

In the measurement of a provision, future events are to be included as follows: 

• planning for reasonable changes in the use of existing technologies 

• exclusion of possible gains expected from the disposal of assets 

• inclusion of changes in law only when enactment is virtually certain. 

Provisions must be reviewed as of each balance sheet date and adjusted through profit or loss if an outflow of 

resources is no longer probable. 

3.15 Contingent liabilities 

Additional information on contingent liabilities is provided under point 4.14. 

Contingent liabilities represent possible or existing obligations that arise from past events, in cases where it is not 

probable that an outflow of resources will be required to settle the obligation. In accordance with IFRS 3, contingent 

liabilities are only recorded on the balance sheet if they were obtained in connection with the acquisition of a company 

and fair value at the point of acquisition can be measured with sufficient reliability. Subsequent measurement 

is made through profit or loss at the higher of the expected value as determined under IAS 37 (see point 3.14) and 

the value determined at the point of recognition – less accumulated amortisation in accordance with IAS 18. 

3.16 Revenue recognition 

Revenues are recognised when the risks and opportunities of ownership as well as control over the goods or services 

are transferred to the buyer. In addition, it must be possible to reliably measure the revenues and the costs arising in 

connection with the sale. If these criteria are met, revenues are recognised in the relevant period. If these criteria are 

not met, any payments received must be treated as liabilities. 

Notes 

Revenues from the rental of property are recognised during the appropriate period determined by the rental agreement. 

The sale of inventories is reported under revenues, with the transfer of ownership forming the point of realisation. 










IAS 37.36 

IAS 37.42 

IAS 37.53 

IAS 37.48 

IAS 37.51 

IAS 37.50 

IAS 37.59 

IAS 37.10 in 

connection 

with IFRS 3 

IAS37.36fin 

connection 

with IAS 18 

IAS 18.14 

IAS 18.19


IAS 1.116 

3.17 Estimates 

In preparing the consolidated financial statements, it is necessary to estimate certain figures (for example, with 

respect to the parameters for property valuation, see 3.4) and make assumptions that influence the recording of 

assets and liabilities, the declaration of other obligations as of the balance sheet date, and the recording of revenues 

and expenses during the reporting period. The actual figures that become known at a later time may differ from these 

estimates. The preparation of these financial statements required the use of estimates for the recognition and measurement 

of provisions, impairment charges and actuarial parameters as well as the determination of the fair value 

of properties, the calculation of net asset value and triple net asset value, and the determination of outstanding 

construction costs.

4. Notes to the Balance Sheet 

4.1 Property 

Additional information on the accounting and valuation principles related to these balance sheet items are provided 

under point 3.4. 

Detailed information on the development of fixed assets is provided below, whereby the effects of changes in the 

consolidation range are shown separately. Also shown separately are currency translation differences, which result 

from the translation of assets by foreign companies using different exchange rates at the beginning and end of the 

year. 

4.1.1 Investment properties 

The development of the cost of investment properties 

is shown in the following table: 

All amounts in TEUR Investment properties 

Balance on 1 May 2005 433,960.5 

Change in consolidation range 834,238.3 

Change in consolidation method 37,963.4 

Currency translation adjustments 27,881.6 

Additions 52,583.1 

Disposals -4,031.6 

Reclassification 57,245.7 

Balance on 30 April 2006 1,439,840.9 

Balance on 1 May 2006 1,439,840.9 






Reclassification 119,707.1 

Balance on 30 April 2007 2,843,050.4 

The development of the fair value of investment 

properties is as follows: 

All amounts in TEUR Investment properties 

Balance on 1 May 2005 455,165.6 







Impairment -12,574.8 


Balance on 30 April 2006 1,586,376.6 

Balance on 1 May 2006 1,586,376.6 









Fair value reflects the current market situation and circumstances as of the balance sheet date. The best evidence of 

fair value is normally provided by prices quoted on an active market for similar properties that have a similar location 

and conditions as well as comparable rental and other contractual relationships. The fair value of IMMOEAST properties 

is determined by expert opinions, which are prepared by independent valuation experts. The function of the 

independent expert is filled by Colliers International for the CEE and SEE segment and DTZ for the CIS segment. 

Notes 

Balance on 30 April 2007 3,501,914.5 










IAS 40.76


IAS 16.74 (a) 

analogously 

IAS 16.73 (e) 

IAS 16.74 (b) 

Additions represent the following objects: 

BG, Sofia, Antim Tower PL, Warsaw, MBP Galaxy 

CZ, Prague, Skofin Office Building PL, Warsaw, MBP Jupiter 

CZ, Prague, BB Centrum Building A PL, Warsaw, MBP Neptun 

CZ, Prague, BB Centrum Building B PL, Warsaw, MBP Orion 

CZ, Prague, BB Centrum Building C PL, Warsaw, MBP Saturn 

CZ, Brno, OC Petrov PL, Warsaw, MBP Sirius 

CZ, Prague, Jungmannova Plaza PL, Warsaw, MBP Merkury 

CZ, Prague, Diamond Point PL, Warsaw, MBP Taurus 

CZ, Pardubice, Grand Pardubice PL, Warsaw, MBP Vega (land) 

CZ, Brno Business Park I PL, Warsaw, Passat 

H, Budapest, Central Business Center RO, Bucharest, Victoria Park I 

HR, Zagreb, Grand Center RO, Bucharest, Jandarmeriei Office 

PL, Warsaw, Salzburg Center RO, Craiova, Shopping Center Craiova 

PL, Warsaw, Equator RU, Moscow, Golden Babylon I 

PL, Warsaw, Zenith RU, Moscow, Golden Babylon II 

PL, Warsaw, Nimbus RU, Moscow, 5th Avenue Shopping Center 

PL, Warsaw, Cirrus SLO, Kranj, Shopping Centre Kranj 

PL, Kalisz, Shopping Centre Kalisz SLO, Nove Mesto, Shopping Centre Nove Mesto 

PL, Warsaw, Brama Zachodnia 

PL, Warsaw, MBP Mars 

SK, Trnava, Arkadia Trnava 

There were no disposals of investment property during 2006/07. 

The carrying value of tangible assets pledged as collateral for long-term debt totalled TEUR 2,639,434.8 (2005/06: 

TEUR 1,586,376.6). 

4.1.2 Property under construction 

Additional information on this balance sheet position is provided under point 3.5. 

The cost of property under construction developed as follows during 2006/07: 

All amounts in TEUR Property under construction 

Balance on 1 May 2005 62,492.0 


Change in consolidation method 286.0 




Reclassification -75,398.5 

Balance on 30 April 2006 89,986.5 

Balance on 1 May 2006 89,986.5 





Disposals -37.6 


Balance on 30 April 2007 243,978.6 

The transition consolidations involved 

the following objects: 

CZ, Prague, Pankrác House 

H, Budapest, Pharma Park 

H, Budapest, Green Point 7 

H, Budapest, Euro Businesspark 

H, Budapest, Shark Park 

PL, Warsaw, Bokserska Distribution Park 

PL, Warsaw, Bokserska Office Center 

PL, Warsaw, Crown Point 

PL, Warsaw, Crown Tower 

PL, Warsaw, Cybernetyki Office Center 

PL, Warsaw, Lopuszanska 

PL, Silesia Logistik Center

The carrying values of properties under construction developed as follows: 

All amounts in TEUR Property under construction 

Balance on 1 May 2005 62,326.5 








Balance on 30 April 2006 85,632.7 

Balance on 1 May 2006 85,632.7 





Disposals -37.6 


Balance on 30 April 2007 242,772.6 

The impairment charges recognised in 2005/06 were related entirely to exchange rate fluctuations. 

The additions to property under construction are shown below: 

CZ, Strakonice, MY BOX Strakonice RO, Targu Mures, Shopping C. Targu Mures 

CZ, Rakovník, MY BOX Rakovník RO, Galati, Euromall Galati 

CZ, Sokolov, MY BOX Sokolov RO, Bukarst, Bucharest Distribution Park 

CZ, Hranice, MY BOX Hranice RO, Targu Jiu, Shopping Center Targu Jiu 

CZ, Kolín, MY BOX Kolín RO, Bucharest, Euromall Baneasa 

CZ, Pribram, My Box Pribram RO, Bucharest, Victoria Park (II - IV) 

CZ, Trˇebíc Nákupní Centrum Trˇebíc RO, Bucharest, IRIDE IV 

CZ, Tábor, Nákupní Centrum Aventin Tábor RO, Ploiesti, LogCenter Ploiesti 

H, Budapest, Mester Park RO, Timisoara, Almera Logistik Portfolio 

H, Békéscaba, STOP.SHOP. BCS (Phase IV) RU, Moscow, Rostokinǒ 

H, Gyöngyös, STOP.SHOP. Gyöngyös (Phase IV) SK, Ružomberok, StopShop Ružomberok 

PL, Warsaw, Rondo Jasdy Polskei SK, Prievidza, Arkadia Prievidza 

RO, Glina, Shopping Center Glina 

RO, Sibiu, Shopping Center Sibiu 

UA, Kiev, Alacor Business Park City 

The fair value of property under construction totalled TEUR 569,107.9 (2005/06: TEUR 95,387.3). Collateral is provided 

by property under construction with a total carrying value of TEUR 242,772.6. 

4.1.3 Non-current property held for sale 

Additional information on this balance sheet item is provided under point 3.7. 

Non-current property held for sale is carried at fair value (IFRS 5.5 (d)) if it falls under the scope of application defined 

in IAS 40. In all other cases, non-current property held for sale is stated at the lower of carrying value and fair value 

less costs to sell. 

Notes 










IAS 16.74 (a)


No properties were classified as held for sale as of 30 April 2007. The Europe Tower in Budapest, Hungary, which was 

recorded under this position as of 30 April 2006, was sold during 2006/07 (also see point 5.3). 


Non-current property 

held for sale 

Cost as of 1 May 2005 0.0 

Currency translation adjustments -1,882.5 



Cost as of 30 April 2006 42,847.6 




Cost as of 30 April 2007 0.0 

Carrying value as of 1 May 2005 0.0 

Currency translation adjustments -1,882.5 



Carrying value as of 1 May 2006 42,847.6 




Carrying value as of 30 April 2007 0.0 

The fair value of non-current properties held for sale totalled TEUR 0 (2005/06: TEUR 54,125.0). 

4.1.4a Net asset value (NAV) 

Net asset value and triple net asset value are calculated in accordance with Best Practices Policy Recommendations 

(6.3) and (6.4) of the European Public Real Estate Association based on the following principles: 

Equity as shown in the IFRS financial statements (excluding minority interests) is adjusted by the difference between 

the carrying value of property that does not quality for valuation at fair value. An adjustment is also made for financial 

instruments that are not stated at fair value. In a last step, deferred tax assets and deferred tax liabilities are offset 

against equity. Triple net asset value is derived from net asset value by adjusting for the difference between the carrying 

value and the fair value of deferred tax assets and deferred tax liabilities.

The results of the calculation are as follows: 


Equity before minority interest 4,907,297.5 1,661,971.7 

Goodwill -180,722.4 

Deferred tax assets -61,089.0 -23,042.5 

Deferred tax liabilities 473,099.1 5,138,585.2 186,946.7 1,825,876.0 

Property under construction (carrying value) 242,772.6 85,632.7 

Property under construction (fair value) 569,107.9 326,335.3 95,387.3 9,754.6 

Inventories (carrying value) 81,694.3 

Inventories (fair value) 

Residual value of forward purchase contracts 

151,751.6 70,057.3 

and investments carried at cost 41,144.9 

Property held for sale (carrying value) 0.0 42,847.6 

Property held for sale (fair value) 0.0 0.0 54,125.0 11,277.4 

Shares in associated companies (carrying value) 372,468.8 21,574.4 

Shares in associated companies (fair value) 438,102.6 65,633.7 39,979.4 18,404.9 

Net Asset Value 5,641,756.5 1,865,312.9 

Number of shares (in 1,000) 555,882.8 222,353.1 

Net asset value per share (in EUR) 10.2 8.4 

Properties under construction and inventories were valued in accordance with the principles described under point 

3.4. The residual value resulting from the measurement of forward purchases and shares in other companies stated 

at cost represents the excess over the contractually agreed acquisition cost. This calculation was also based on a 

property valuation prepared by the experts named under point 3.4. 

The fair value of shares in associated companies was derived from the valuation of the Palladium property (Prague), 

which is owned by the EPG Group, and the valuation of the Lakeside project (Bratislava), which is owned by TriGránit 

Centrum a.s. The stake owned in TriGránit Holding Ltd. was not valued because the acquisition was concluded shortly 

before the balance sheet date. 

The NAV effect of forward purchase contracts is calculated as the difference between the gross development value 

and the acquisition value for IMMOEAST based on the fixed purchase yield. This difference is discounted back to the 

balance sheet date. The same applies to purchase options for the remaining shares in joint ventures. 

The NAV effect of inventories represents the difference between the carrying value and the residual value determined 

by the expert opinion. 

4.1.4b Triple net asset value (NNNAV) 


Net asset value (NAV) 5,641,756.5 5,641,756.5 

Deferred taxes (present value) -8,554.0 -8,554.0 

Triple net asset value (NNNAV) 5,633,202.5 

Number of shares (in 1,000) 555,882.8 

Triple net asset value per share (in EUR) 10.1 

Notes 











The calculation of EPRA NNNAV is based on the premise that any taxes due in connection with the sale of a property 

will reduce EPRA NAV accordingly. The strategy of the company is also reflected in computing the present value of 

taxes. For the above calculation, this means that the IMMOEAST strategy – which focuses on long-term investments 

– does not include the sale of properties, and the present value of the provisions for taxes therefore equals zero. The 

current provisions for deferred taxes were only discounted to present value in cases where plans call for the sale of 

the property (e.g. in the residential segment). 

Outstanding construction costs 

The list included below shows the outstanding construction and acquisition costs for all property projects, classified 

by country. These amounts reflect contractual obligations to acquire or produce property projects as well as the 

intention of IMMOEAST management to realise or complete these projects. The following table shows the budged 

amounts based on current estimates: 

Land with construction/redevelopment projects Purchase costs Total investment Completion 

Bulgaria 162,718.9 162,718.9 06/2008 – 06/2010 

Czech Republic 62,533.4 62,533.4 08/2007 – 10/2010 

Poland 204,632.4 204,632.4 02/2008 – 11/2010 

Romania 183,895.6 183,895.6 01/2008 – 12/2010 

613,780.3 613,780.3 

Carrying amount Outstanding construction/ 

Development projects (current) purchase costs Total investment Completion 

Czech Republic 26,905.7 180,366.3 207,272.0 08/2007 – 10/2010 

Hungary 35,114.4 370,996.9 406,111.4 08/2007 – 10/2008 

Poland 547.0 23,832.0 24,379.0 02/2008 – 11/2010 

Romania 120,386.3 556,666.6 677,052.9 01/2008 – 12/2010 

Russia 42,222.1 577,070.4 619,292.5 06/2009 

Slovakia 14,836.3 38,673.3 53,509.6 09/2007 – 06/2009 

Ukraine 2,760.8 55,412.3 58,173.1 2009 

242,772.6 1,803,017.9 2,045,790.5 

Carrying amount Outstanding construction/ 

Inventories (current) purchase costs Total investment Completion 

Bulgaria 4,542.7 12,879.2 17,421.9 05/2007 – 11/2007 

Serbia 2,734.7 6,726.3 9,461.0 12/2007 – 09/2008 

Estonia 2,950.1 0.0 0.0 - 

Poland 7,653.1 34,610.1 42,263.2 07/2007 – 06/2008 

Romania 45,410.9 163,680.2 209,091.1 06/2008 – 08/2009 

Slovakia 18,392.69 41,587.31 59,980.00 09/2009 

81,684.1 259,483.1 338,217.1 

Forward purchases and minority Carrying amount Outstanding construction/ 

stakes with purchase options (current) purchase costs Total investment Completion 

Czech Republic 27,302.4 27,302.4 12/2007 – 12/2008 

Hungary 131,248.1 131,248.1 08/2007 – 10/2008 

Romania 193,402.0 193,402.0 01/2008 – 12/2010 

Slovakia 236,448.51 236,448.51 03/2007 – 12/2007 

588,401.0 588,401.0 

Total construction costs 3,264,682.3 3,586,188.9

The first category includes land that is recognised and measured in accordance with IAS 40 as well as investment 

properties that are undergoing redevelopment. The second section comprises properties recognised in accordance 

with IAS 16 and the third section properties recognised in accordance with IAS 2. The last list shows purchase commitments 

(based on the value of the property) arising from forward purchase contracts as well as contracts that 

permit the acquisition of joint venture shares and minority interests. The outstanding construction costs are based 

on projections and budgets. 

4.2 Other tangible assets 

Additional information on this balance sheet item is provided under point 3.6. 

The development of other tangible assets is as follows: 

Machinery and 

Other equipment, 

furniture, fixtures 

All amounts in TEUR equipment and office equipment Prepayments Total 

Cost as of 1 May 2005 0.0 2,328.9 804.0 3,133.0 

Change in consolidation range 673.3 598.5 20.9 1,292.7 

Change in consolidation method 0.0 86.3 0.0 86.3 

Currency translation adjustments 1.2 25.7 -1.5 25.5 

Additions 51.5 400.8 0.0 452.3 

Reclassification -550.2 -71.5 -802.5 -1,424.3 

Cost as of 30 April 2006 175.7 3,368.8 20.9 3,565.4 

Accumulated depreciation as of 1 May 2005 0.0 1,645.2 0.0 1,645.2 


Currency translation adjustments 0.0 26.2 0.0 26.2 

Reclassification 0.0 -153.5 0.0 -153.5 

Depreciation for the year 19.5 257.2 0.0 276.7 

Accumulated depreciation as of 30 April 2006 19.5 1,852.5 0.0 1,872.1 

Carrying value as of 30 April 2006 156.2 1,516.3 20.9 1,693.3 

Cost as of 1 May 2006 175.7 3,368.8 20.9 3,565.4 

Change in consolidation range 248.8 453.4 0.0 702.2 



Additions 21.6 366.1 0.2 387.9 

Disposals -45.2 -81.7 0.0 -126.8 

Reclassification 2.8 -176.1 -22.0 -195.4 

Cost as of 30 April 2007 451.7 4,116.2 0.2 4,568.0 

Accumulated depreciation as of 1 May 2006 19.5 1,852.5 0.0 1,872.1 



Disposals -0.6 156.1 0.0 155.6 

Reclassification 0.0 -131.4 0.0 -131.4 

Depreciation for the year 69.2 351.7 0.0 420.9 

Accumulated depreciation as of 30 April 2007 96.1 2,314.6 0.0 2,410.6 

Carrying value as of 30 April 2007 355.6 1,801.6 0.2 2,157.4 

No impairment charges were recognised to other tangible assets during the reporting year. 

Notes 










IAS 16.73 (d), 

(e)


IAS 38.118 

IAS 38.122 

(a), (d) 

4.3 Intangible assets and goodwill 

4.3.1 Intangible assets 


The development of intangible assets is shown below: 

All amounts in TEUR Other intangible assets 

Cost as of 1 May 2005 2,368.1 


Currency translation adjustments 81.7 

Additions 1.7 

Reclassification -176.6 

Cost as of 30 April 2006 2,388.8 

Accumulated amortisation as of 1 May 2005 147.2 

IMMOEAST has no intangible assets with an indefinite useful life, and no intangible assets are encumbered. 

4.3.2 Goodwill 

Additional information on this balance sheet position is provided under point 3.3.1. 

All amounts in TEUR Other intangible assets 

Cost as of 1 May 2006 2,388.8 

Change in consolidation range 4.1 



Additions 227.8 

Disposals 0.0 

Reclassification 0.0 

Cost as of 30 April 2007 2,741.9 


Currency translation adjustments 4.5 Accumulated amortisation as of 1 May 2006 421.1 

Disposals -0.7 Change in consolidation method 0.7 

Reclassification -0.4 Currency translation adjustments 25.1 

Amortisation for the year 169.1 Disposals 0.0 

Accumulated amortisation as of 30 April 2006 421.1 Reclassification 0.0 

Carrying value as of 30 April 2006 1,967.8 Amortisation for the year 242.3 

Accumulated amortisation as of 30 April 2007 689.2 

Carrying value as of 30 April 2007 2,052.7 

In order to test goodwill for impairment, the carrying value of the cash-generating unit is increased by the carrying 

value of goodwill. The total amount is then compared with the recoverable amount of the cash-generating unit. Any 

negative difference is recognised as an impairment charge to goodwill. The acquisition of project companies generally 

leads to positive goodwill because of the obligation to record deferred tax liabilities on revalued properties. 

The unequal valuation of these deferred tax liabilities – which, in contrast to other acquired net assets, may not be 

discounted according to IFRS 3.57b in connection with IFRS 3.B16 (i) and IAS 12.53 – results in goodwill as a technical 

figure. 

Additional information on the recognition and measurement of goodwill is provided under point 3.3.1. During 2006/07 

TEUR 43,244,1 (2005/06: TEUR 30,729,6) of newly acquired goodwill was written off through the income statement 

in accordance with IFRS 3.54. The development of goodwill is as follows:

All amounts in TEUR Goodwill 

Carrying value as of 30 April 2005 0.0 


Currency translation adjustments -363.7 

Impairment -30 729.6 

Carrying value as of 30 April 2006 0.0 

Addition from initial consolidation 205,671.5 

Addition from transition consolidation 18,445,9 

Currency translation adjustments -151.0 


Carrying value as of 30 April 2007 180,722.4 

4.3.2a Impairment test with resulting impairment charge 

The following section explains the impairment tests that resulted in the major impairment charges: 

4.3.2a.1 Equator/Zenith/Cirrus/Nimbus 

Goodwill 7,899.9 

Carrying value of cash-generating unit 17,335.8 

Deferred tax liability -2,550.2 

22,685.5 

Fair value of cash-generating unit 17,335.8 

Fair value of deferred tax liability 0.0 

17,335.8 

Impairment 5,349.7 

4.3.2a.2 Rostokinǒ 




46,440.5 



42,222.1 


4.3.2a.3 BB Centrum Building B 




45,825.4 



43,637.4 


Notes 

The impairment charge recognised to the goodwill 

that was allocated to the cash-generating unit 

Equator/Zenith/Cirrus/Nimbus resulted from the 

purchase price premium for the acquisition of all 

four property elements (also see 2.3.1.1.1.3). 



Rostokinǒ is related to reserves in this development 

project, which were not available as of the balance 

sheet date (also see 2.3.1.2.1.2). 


that was allocated to the cash-generating unit Centrum 

Building B resulted from a decline in the value 

of the property in comparison with the acquisition 

date (also see 2.3.1.3.1.4). 










IFRS 3.75


4.3.2a.4 Bucharest Distribution Park 



Deferred tax liability 0.0 

14,501.8 



10,320.1 


4.3.2a.5 Brno Estates 




86,526.9 



79,028.2 


4.3.2a.6 Alacor 



Deferred tax liability -341.5 

14,918.3 



2,760.8 


4.3.2a.7 Golden Babylon I and II 




159,673.7 



159,500.2 

Impairment 173.5 



Bucharest Distribution Park resulted from insufficient 

reserves as of the balance sheet date. 



Brno Estates resulted from the high variable purchase 

price component (earn-out), which was not 

reflected in the valuation of the property (also see 

2.3.1.1.3.5). 


that was allocated to the cash-generating unit Alacor 

resulted from insufficient reserves as of the balance 

sheet date (also see 2.3.1.2.2.1). 

The impairment charge recognised to goodwill allocated 

to the cash-generating units Golden Babylon I 

and II is attributable to the deferred tax liability that 

resulted from the low tax bases of these properties 

as well as an increase in the value of the Rouble 

after the acquisition date (also see 2.3.1.2.1.1).

4.3.2a.8 Centre Invest 




17,827.6 



17,114.6 


4.3.2a.9 Passat 




28,795.5 



28,741.2 


4.3.2a.10 Delta Park 




45,642.8 



44,949.8 


4.3.2a.11 Central Business Centre 




20,843.9 



20,481.7 


Notes 



Centre Invest resulted from insufficient revaluation 

results (also see 2.3.1.1.3.5). 


that was allocated to the cash-generating unit Passat 

resulted from insufficient revaluation results 

(also see 2.3.1.1.1.7). 


that was allocated to the cash-generating unit Delta 

Park resulted from insufficient revaluation results 

(also see 2.3.1.1.3.5). 



Central Business Center resulted from insufficient 

revaluation results (also see 2.3.1.1.4.1). 











IAS 36.134 

IAS 36.134 

IAS 36.134 

IAS 36.134 

4.3.2b Impairment test without resulting impairment charge 

The following section explains the impairment tests for material goodwill recognised by the company: 

4.3.2b.1 5th Avenue 




117,189.4 



119,845.6 

Surplus -2,656.2 

4.3.2b.2 Mester Park 




35,619.3 



180,013.7 

Surplus -144,394.4 

4.3.2b.3 Atom Centrum 

Goodwill. 7,642.5 



57,063.3 



59,998.1 


4.3.2b.4 Skofin 




15,069.5 



15,936.7 

Surplus -867.2 

The goodwill recognised for the cash-generating 

unit 5th Avenue is covered by sufficient revaluation 

results (see 2.3.1.2.1.3). 


unit Mester Park can be covered by sufficient undisclosed 

reserves from the property valuation. 


unit Atom Centrum can be covered by sufficient 

revaluation gains (see 2.3.2). 


unit Skofin can be covered by sufficient revaluation 

gains (see 2.3.1.1.3.1).

4.3.2b.5 BB Centrum Building C 




56,031.7 



60,905.9 


4.3.2b.6 BB Diamond Point 




44,672.4 



47,930.3 


4.3.2b.7 Grand Centar 


Carrying value of cash-generating unit 164.2 


-1,480.9 

Fair value of cash-generating unit 164.2 


164.2 


4.3.2b.8 Victoria Park Buildings II to IV 




38,137.1 



43,009.0 


Notes 


unit BB Centrum Building C can be covered by 

sufficient revaluation gains (see 2.3.1.1.3.4). 


unit Diamond Point can be covered by sufficient 

revaluation gains (see 2.3.1.1.3.2). 


unit Grand Centar can be covered by sufficient 

revaluation gains (see 2.3.1.3.2.1). 


unit Victoria Park Buildings II to IV can be covered 

by sufficient undisclosed reserves from the property 

valuation (see 2.3.1.3.3.13). 










IAS 36.134 

IAS 36.134 

IAS 36.134 

IAS 36.134


IAS 36.134 

IAS 36.134 

IAS 36.134 

4.3.2b.9 Arkadia 




14,866.2 



15,204.0 

Surplus -337.8 

4.3.2b.10 Kranj 




20,111.1 



21,943.8 


4.3.2b.10 BB Centrum Building A 




69,461.2 



71,243.3 


4.3.3 Negative goodwill (excess) 


Negative goodwill from business combinations that 

took place before the 2004/05 financial year, was 

recorded through equity without recognition to profit 

or loss in accordance with IFRS 3.81. For negative 

goodwill acquired during the reporting year, IFRS 3.56 

(a) requires a reassessment of the identification and 

measurement of the amounts resulting from the purchase 

price allocation. Any remaining excess of net 

assets over the purchase price is recognised immediately 

in profit or loss in agreement with IFRS 3.56 

(b) (also see point 3.3.2). The resulting amount of 

TEUR 5,015.2 (2005/06: TEUR 43,951.0) was recorded 

under other operating income. 


unit Arkadia can be covered by sufficient revaluation 

gains (see 2.3.1.1.2.2). 


unit Kranj can be covered by sufficient revaluation 

gains (see 2.3.1.3.5.1). 


unit BB Centrum Building A can be covered by 

sufficient revaluation gains (see 2.3.1.1.3.4). 

The development of negative goodwill is shown in the following 

table: 

All amounts in TEUR Negative goodwill 

Carrying value as of 30 April 2005 0.0 

Additions -45,474.9 


Reversal through profit and loss 43,951.0 

Carrying value as of 30 April 2006 0.0 

Additions -5,016.4 


Reversal through profit and loss 5,015.2 

Carrying value as of 30 April 2007 0.0

4.3.4 Differences arising from the consolidation of liabilities on the acquisition of puttable instruments 

Shares in partnerships were recorded in 2005/06 based on the requirements of IAS 32.18 (b). 

In contrast to this procedure, the carrying value of these investments was offset against the proportional share of 

equity in newly acquired partnerships during the consolidation of equity and not during the consolidation of liabilities 

in 2006/07. 

Differences of TEUR 0.0 (2005/06: TEUR 7.1) arising from the consolidation of liabilities were recognised to the income 

statement and included under other operating expenses (see point 5.6). 

4.4 Shares in associated companies 

Additional information on this balance sheet position is provided under point 2.2.2 

The cost and carrying values of shares in associated companies are comprised of the following: 

All amounts in TEUR European Property Group TriGránit Holding TriGránit Centrum a.s. Mester Park Kft. M.O.F. Immobilien AG Total 

Cost as of 1 May 19,783.5 0.0 0.0 9,562.3 3.8 29,349.6 

Additions 0.0 354,119.1 4,140.5 0.0 0.0 358,259.6 

Disposals 0.0 0.0 0.0 -9,562.3 -3.8 -9,566.1 

Cost as of 30 April 19,783.5 354,119.1 4,140.5 0.0 0.0 378,043.1 

Carrying value as of 1 May 13,342.4 0.0 0.0 8,228.1 3.8 21,574.3 

Additions 0.0 354,119.1 4,140.5 0.0 0.0 358,259.6 

Disposals 

Changes in shareholders’ equity 

0.0 0.0 0.0 -8,228.1 -3.8 -8,231.9 

of associates 

Share of profit/(loss) from investments 

155.5 0.0 10.7 0.0 0.0 166.2 

in other companies -989.8 1,554.4 135.9 0.0 0.0 700.6 

Carrying value as of 30 April 12,508.1 355,673.5 4,287.1 0.0 0.0 372,468.8 










30 April 2006 

European M.O.F. 

All amounts in TEUR Property Group Mester Park Kft. Immobilien AG Total 

Cost as of 1 May 2005 19,783.5 9,562.3 0.0 29,345.8 

Additions 0.0 0.0 3.8 3.8 

Cost as of 30 April 19,783.5 9,562.3 3.8 29,349.6 

Carrying value as of 1 May 16,123.0 9,046.9 0.0 25,169.9 

Additions 0.0 0.0 3.8 3.8 

Changes in shareholders’ equity of associates 362.5 -217.6 0.0 145.0 

Distribution -2,541.3 0.0 0.0 -2,541.3 

Share of profit/(loss) from investments in other companies -601.9 -601.2 0.0 -1,203.1 

Notes 

Carrying value as of 30 April 13,342.4 8,228.1 3.8 21,574.3 

Shares in associated companies include a 25% stake in European Property Group Ltd. and a 25% stake in TriGránit 

Holding and TriGránit Centrum a.s.


IAS 28.39 

IAS 28.37 

As of 1 November 2006 the investment in Mester Park Ost Bt. and Mester Park Kft. was increased from 45% to 75%, 

which resulted in a changeover from equity valuation to full consolidation (also see point 2.2 Structural changes). 

M.O.F. Immobilien AG was classified as an IAS 39 investment in 2006/07 due to a lack of consolidated information 

prepared and reported in accordance with IFRS (also see point 4.5). 

The proportionalshare of changes in the equity of associated companies, which were included in the consolidated 

financial statements without recognition through profit or loss in accordance with IAS 28.11, comprise a hedging 

reserve of TEUR 45.3 (2005/06: TEUR 276.6) from the consolidated financial statements of the European Property 

Group Ltd. and foreign currency differences of TEUR 121.0 (2005/06: TEUR –131.6). 

The aggregated net assets of associated companies are as follows: 


European TriGránit TriGránit European Mester Park M.O.F. 

All amounts in TEUR Property Group1) Holding1) Centrum a.s. 2) Property Group3) Kft. 4) Immobilien AG 

Property 567.0 109,063.0 13,443.8 112,051.0 10,441.7 0.0 

Other non-current assets 121,013.0 233,787.0 24.1 460.0 28.0 0.0 

Current assets 12,666.0 97,585.0 2,355.2 13,004.0 753.0 3.8 

Total assets 134,246.0 440,435.0 15,823.1 125,515.0 11,222.7 3.8 

Equity 69,529.0 169,968.0 1,183.7 77,673.0 9,424.9 3.8 

Non-current liabilities 61,324.0 241,607.0 9,797.5 44,955.0 752.7 0.0 

Current liabilities 3,393.0 28,860.0 4,841.9 2,887.0 1,045.1 0.0 

Total equity and liabilities 134,246.0 440,435.0 15,823.1 125,515.0 11,222.7 3.8 

1) 31 December 2006 2) 30 April 2007 3) 31 March 2006 4) consolidated 

The aggregated income statement for the associated companies is as follows: 


European TriGránit TriGránit European Mester Park M.O.F. 

All amounts in TEUR Property Group1) Holding1) Centrum a.s. 2) Property Group3) Kft. 4) Immobilien AG 

Revenues 3,110.0 4,320.0 0.0 535.0 667.2 0.0 

Operating profit -4,578.0 28,149.0 -336.1 -406.0 -603.7 0.0 

Financial results 127.0 -8,893.0 1,032.1 23.0 53.5 0.0 

Earnings before tax -4,451.0 19,256.0 696.1 -383.0 -550.2 0.0 

1) 31 December 2006 2) 30 April 2007 3) 31 March 2006 4) consolidated 

4.5 Other financial instruments 


The development of financial instruments is shown in the following table: 

Investments in Financial 

All amounts in TEUR other companies instruments Total 

Cost as of 1 May 2006 75,878.8 1,000.3 76,879.1 

Additions 171,321.2 7,688.5 179,009.7 

Disposals 0.0 -2,664.0 -2,664.0 

Currency translation effects 0.0 22.2 22.2 

Cost as of 30 April 2007 247,200.0 6,047.0 253,247.0 

Carrying value as of 30 April 2006 93,089.3 1,000.3 94,089.6 

Carrying value as of 30 April 2007 283,957.8 6,316.4 290,274.2

Investments in other companies include an atypical silent partner investment in “Wienerberg City” Errichtungsgesellschaft 

m.b.H., which has an acquisition cost of TEUR 10,000. IMMOEAST Beteiligungs GmbH as the atypical silent 

partner participates in the profit and loss, and total assets of the company (including goodwill and undisclosed 

reserves) in proportion to its investment. The allocation of losses is limited to a maximum of 120% of the silent partner 

contribution. During the 2006/07 financial year, a revaluation of TEUR 1,300.1 was recorded to this investment, 

but not recognised through profit or loss. The carrying value totalled TEUR 11,075.9 as of 30 April 2007. 

Financial instruments comprise securities and derivatives. Information on the conditions and market values of the 

derivatives is provided under points 8.1.2.2.1.2 and 8.1.2.2.2. 

The conditions of the remaining investments in other companies are as follows: 

The total commitment of IMMOEAST in Polonia Property Fund Ltd. equals TEUR 20,000.0, whereby the focal point of 

investments made by this fund is placed on Poland, Hungary and the Czech Republic. 

The investment activities of Heitman Central Europe Property Partners II also concentrate on Poland, Hungary, the 

Czech Republic and Slovakia in the CEE segment. The total commitment of IMMOEAST in this investment equals 

TEUR 20,000.0, with a term limited to the end of 2009. 

In addition, IMMOEAST holds three investments that focus exclusively on the CIS segment. The total commitment 

amounts to TEUR 48,204.9 in Eastern Property Holdings Ltd., TEUR 93,142.6 in FF&P Russia Real Estate Ltd. and 

TEUR 18,375.6 in the FF&P Development Fund. 

Heitman Central Europe Property Partners III invests in Poland, Hungary, the Czech Republic, Slovakia, Bulgaria and 

Romania as well as in the CEE and SEE segments. The total commitment of IMMOEAST equals TEUR 25,000.0 and 

ends in 2015. 

IMMOEAST holds a total commitment of TEUR 36,000.0 in the Global Emerging Property Fund, whose investment 

activities focus primarily on Romania, Bulgaria and Serbia. The term of this commitment is also limited to 2015. 










Revaluation/ Revaluation/ 

impairment impairment Group 

Group carrying Additions/ charges through charges through carrying Distribu- 

Total Focus of value as of disposals in profit/loss in profit/loss in value as of tions in 

All amounts in TEUR Commitment investment Term 30.4.2006 2006/07 2006/07 2006/07 per 30.4.2007 2006/07 

Polonia Property Fund Ltd. 

Heitman Central Europe 

20,000.0 PL, H, CZ Mid-2010 19,256.2 6,260.0 0.0 5,368.6 31,538.3 0.0 

Property Partners II 20,000.0 PL, H, CZ, SK End of 2009 19,274.4 684.3 0.0 733.5 20,038.6 3,777.8 

Eastern Property Holdings Ltd. 48,204.9 CIS 15,725.3 36,222.2 4,698.3 0.0 56,645.7 216.0 

FF&P Russia Real Estate Ltd. 93,142.6 CIS Mid-2009 16,275.5 24,119.3 -947.1 0.0 39,447.8 597.7 

Global Emerging Property Fund 

Heitman Central Europe Property 

36,000.0 RO, BG, SBR Mid-2015 4,415.4 16,281.3 7,848.0 0.0 28,544.7 0.0 

Partners III 25,000.0 PL, H, CZ, SK, BG, RO Mid-2015 3,107.1 8,224.3 484.6 0.0 11,816.0 0.0 

Prime Property BG Reit 11,766.2 BG 5,259.7 7,127.8 -510.4 0.0 11,877.1 0.0 

Bluehouse Accession Property II 30,000.0 BG, RO End of 2016 0.0 5,250.0 841.2 0.0 6,091.2 0.0 

MOF Immobilien AG 50,000.0 A, CRO, SRB, UA, BG End of 2009 0.0 2,130.0 0.0 0.0 2,130.0 0.0 

Adama 160,341.1 RO, BG, MD 0.0 26,724.7 0.0 0.0 26,724.7 0.0 

FF&P Development Fund 18,375.6 CIS Start of 2010 0.0 7,981.9 0.0 0.0 7,981.9 0.0 

Europa Emerging Europe Fund Ltd. 25,000.0 SRB, TR, UA, MK, MNE Start of 2015 0.0 0.0 0.0 0.0 0.0 0.0 

Dikare Holdings Ltd. 

Polus Transilvania Companie 

5,302.0 RO 0.0 1,575.0 0.0 0.0 1,575.0 0.0 

de Investitii S.A. 185,000.0 RO 0.0 28,470.9 0.0 0.0 28,470.9 0.0 

Notes


The total commitment of IMMOEAST in Prime Property BG Reit equals TEUR 11,766.2; this firm focuses on projects in 

Bulgaria. IMMOEAST also holds an investment in Bluehouse Accession Property II, which concentrates on Bulgaria 

und Romania; the total commitment equals TEUR 30,000.0 and has a term that expires at the end of 2015. 

MOF Immobilien AG, which is included in the consolidated financial statements as of 30 April 2006 at equity, is now 

classified as an IAS 39 investment. The investment activities of MOF Immobilien AG are focused primarily on Austria, 

Croatia, Serbia, Ukraine and Bulgaria, and IMMOEAST has a total commitment of TEUR 50,000.0. 

The second highest total commitment held by IMMOEAST is an investment of TEUR 160,341.1 in Adama. This firm 

concentrates on projects in Romania, Bulgaria and Moldavia in South-eastern Europe. 

Europa Emerging Europe Fund Ltd. invests chiefly in Bulgaria, Romania, Croatia, Serbia, Turkey, Ukraine, Macedonia 

and Montenegro. The total commitment of IMMOEAST equals in TEUR 25,000.0 and ends in 2015. 

A further IAS 39 investment is the stake held in Dikare Holdings Ltd., which focuses on Romania. The total commitment 

of IMMOEAST equals TEUR 5,302.0. 

At TEUR 185,000.0, Polus Transilvania Companie de Investitii S.A. represents the highest total commitment held by 

IMMOEAST. Polus Transilvania Companie de Investitii S.A. invests exclusively in Romania. 

The following table shows the fair values of investments in other companies, 

which are not recognised through profit or loss: 


Polonia Property Fund Ltd. 31,583.3 19,256.2 

Heitman Central Europe Property Partners II 20,038.7 19,274.4 

“Wienerberg City” Errichtungsgesellschaft m.b.H. 11,075.9 9,775.8 

Polus Transilvania Companie de Investitii S.A. 28,470.9 0.0 

Total 91,123.8 48,306.4 

The following table shows the fair values of investments in other companies, 

which are recognised through profit or loss: 


Eastern Property Holdings Ltd. 56,645.7 15,725.3 

FF&P Russia Real Estate Ltd. 39,447.8 16,275.5 

Global Emerging Property Fund 28,544.7 4,415.4 

Heitman Central Europe Property Partners III 11,816.0 3,107.1 

Prime Property BG Reit 11,877.1 5,259.7 

Bluehouse Accession Property II 6,091.2 0.0 

M.O.F. Immobilien AG 2,130.0 0.0 

Adama 26,724.7 0.0 

FF&P Development Fund 7,981.9 0.0 

Europa Emerging Europe Fund Ltd. 0.0 0.0 

Dikare Holdings Ltd. 1,575.0 0.0 

Total 192,834.0 44,783.0

The other investments recognised at fair value through profit and loss are part of a portfolio, whose results are 

measured on the basis of fair value and also reported regularly on this basis to management. These investments are 

irrevocably allocated to the category “at fair value through profit or loss” as of the acquisition date. 

The fair value of properties held through investments in other companies totalled EUR 786.9 million as of 30 April 

2007 (2005/06: EUR 176.7 mill.): 

The following table compares the carrying value of financial instruments with their present value: 

Amortised Fair value not Fair value through Carrying value Carrying value 

All amounts in TEUR cost through profit or loss profit or loss 30 April 2007 30 April 2007 

ASSETS 


Loans and receivables 

Other financial instruments 

1,290,901.5 1,290,901.5 1,290,901.5 

Designated at fair value through profit and loss 192,834.0 192,834.0 192,834.0 

Held for trading 2,004.4 2,004.4 2,004.4 

Available for sale 

Financial instruments 

95,435.8 95,435.8 95,435.8 

Held for trading 300,000.0 300,000.0 300,000.0 


Loans and receivables 402,146.3 402,146.3 402,146.3 

EQUITY AND LIABILITIES 


Measured at amortised cost 


1,073,628.4 1,073,628.4 1,051,700.3 

Measured at amortised cost 


106,981.1 106,981.1 106,981.1 

Designated at fair value through profit and loss 367.3 367.3 367.3 

Measured at amortised cost 136,881.5 136,881.5 136,881.5 

The following table shows a transition from the carrying values of financial instruments to the IAS 39 valuation categories: 

Fair value not through Fair value through Carrying value Carrying value 

All amounts in TEUR Amortised cost profit or loss profit or loss 30 April 2007 30 April 2007 

ASSETS 

Held for trading 

Derivatives 2,004.4 2,004.4 

Financial instruments 300,000.0 300,000.0 

Designated at fair value through profit and loss 

Investments in other companies 192,834.0 192,834.0 

Available for sale 

Financial instruments 4,312.0 4,312.0 

Investments in other companies 

Loans and receivables 

91,123.8 91,123.8 

Trade accounts receivable 31,082.4 31,082.4 

Other receivables and assets 1,259,819.0 1,259,819.0 


Notes 










IAS 39.9, IFRS 

7.B5 (a) 

IFRS 7.6 

IFRS 7.25 

IAS 7.8 

IFRS 7.25


Fair value not through Fair value through Carrying value 

All amounts in TEUR Amortised cost profit or loss profit or loss 30 April 2007 

EQUITY AND LIABILITIES 

Held for trading 

Derivatives 367.3 367.3 

Financial liabilities measured at amortised cost 

Trade accounts payable 106,981.1 106,981.1 

Amounts due to financial institutions 1,044,704.5 1,044,704.5 

Amounts due to local authorities 7.0 7.0 

Liability, limited partnership interest 10,440.0 10,440.0 

Other financial liabilities 18,477.0 18,477.0 

Other liabilities 136,881.5 136,881.5 

4.6 Receivables and other assets 

Thereof remaining 

Thereof remaining term between 1 Thereof remaining 

All amounts in TEUR 30 April 2007 term under 1 year and 5 years term over 5 years 30 April 2006 

Trade accounts receivable 

Rents receivable 27,094.9 27,051.3 43.6 0.0 12,078.4 

Miscellaneous 3,987.5 3,537.5 450.0 0.0 1,833.3 

Accounts receivable from joint venture partners 19,010.6 163.2 18,847.5 4,305.8 

Accounts receivable from subsidiaries 33,370.0 718.0 97.1 32,554.9 911.3 

Accounts receivable from subsidiaries, 

limited partnership contribution 3,194.0 3,194.0 0.0 0.0 3,194.0 

Accounts receivable from parent company 

(trust receivable) 993,142.2 993,142.2 0.0 0.0 412,534.1 

Other receivables and assets 

Financing 114,998.6 92,014.5 1.6 22,982.5 17,280.0 

Fiscal authorities (transaction taxes) 37,026.6 33,588.4 3,438.2 0.0 22,032.6 

Fiscal authorities (income taxes) 2,725.7 2,725.7 0.0 0.0 1,243.5 

Property management 4,997.4 4,898.5 17.5 81.5 1,481.7 

Accrued interest 922.7 922.7 0.0 0.0 176.2 

Insurance 296.1 296.1 0.0 0.0 137.2 

Administrative duties 14,371.1 14,371.1 0.0 0.0 6,296.0 

Commissions 1,186.8 453.2 379.7 354.0 910.2 

Lease incentives 3,371.4 1,447.0 1,679.7 244.8 687.7 

Miscellaneous 31,205.6 18,355.2 366.1 12,484.3 9,023.2 

Total 1,290,901.2 1,196,878.6 25,320.9 68,702.0 494,125.2 

Accounts receivable from subsidiaries as a result of limited partnership interests relate to I-E-H zweite Immoeast 

Holding GmbH, which holds 20% of the shares in AM-ImmoEast Central European Property Fund C.V. as the limited 

partner. The amount of TEUR 3,194.0 represents the part of the receivable that was not included in the consolidation 

of liabilities. The shares in AM-ImmoEast Central European Property Fund C.V. are puttable instruments as defined 

in IAS 32.18 (b) (see point 3.10.6). 

Miscellaneous other receivables and assets are comprised primarily of TEUR 10,664.4 in ancillary transaction costs 

incurred for the future acquisition of shares in property companies in Romania and Hungary as well as TEUR 12,280.4 

of loans granted to non-group companies in connection with project financing. 

The following table shows the age structure of trade accounts receivable:

Thereof not impaired and due within the following time periods 

Thereof neither 

impaired Between 3 Between 6 Over 12 

All amounts in TEUR 30 April 2007 nor overdue Up to 3 months and 6 months and 12 months months 

Trade accounts receivable (rents) 27,094.9 14,578.9 7,440.1 2,974.2 1,250.6 851.0 

Trade accounts receivable (other) 3,987.5 3,266.5 420.0 139.4 91.3 70.4 

Total 31,082.4 17,845.5 7,860.1 3,113.6 1,341.9 921.4 

Thereof not impaired and due within the following time periods 

Thereof neither 

impaired Between 3 Between 6 Over 12 

All amounts in TEUR 30 April 2006 nor overdue Up to 3 months and 6 months and 12 months month 

Trade accounts receivable (rents) 12,078.4 7,606.0 3,193.6 658.5 517.4 102.9 

Trade accounts receivable (other) 1,833.3 1,543.4 147.7 69.8 49.6 22.9 

Total 13,911.7 9,149.3 3,341.3 728.3 567.0 125.8 

The risk associated with trade accounts receivables due from tenants and customers is low because the credit standing 

of all tenants and customers is monitored on a regular basis and no tenant or customer is responsible for more 

than 5% of total receivables. In cases where receivables carry a risk of default, an impairment charge is recognised. 

With respect to the trade accounts receivable that were neither impaired nor overdue as of the balance sheet date, 

there are no signs that the debtors will be unable to meet their payment obligations. 

4.7 Current financial instruments 


Securities of TEUR 300,000.0 (2005/06: TEUR 101,966.0), which are recorded under current assets, have a remaining 

term of less than three months. 

4.8 Inventories 


Inventories totalled TEUR 81,694.3 as of 30 April 2007 (2005/06: TEUR 18,375.5). All objects included under inventories 

represent properties under construction. 

The additions relate to the following objects: 

BG, Zarevo, Koral Bay BG, St. Vlas 

SRB, Belgrade, Francuska PL, Katowice, Silesia Residential 

PL, Katowice, Silesia Residential II PL, Katowice, Silesia Residential III 

PL, Katowice, Silesia Residential IV 

RO, Bucharest, Jandarmeriei Residential 

RO, Brasov, IUS Brasov 

Notes 











IAS 1.124B 

IAS 12.81 (a) 

4.9 Shareholders’ equity 

The development of equity in the IMMOEAST Group is shown on the Statement of Changes in Equity, which forms an 

integral part of these consolidated financial statements. 

Management views capital as equity defined under IFRS, which excludes components of debt. IMMOEAST is not 

subject to any external regulations or supervisory regulations that require a minimum level of capital. 

The annual general meeting on 17 September 2004 approved an increase of EUR 88,941,240 in share capital from 

EUR 59,294,160 to EUR 148,235,400. A resolution passed by the annual general meeting on 6 June 2005 authorised 

the Executive Board to increase share capital in accordance with § 169 of the Austrian Stock Corporation 

Act. This authorisation is valid up to 22 June 2010 and covers an increase of up to EUR 74,117,700 to a total of 

EUR 222,353,100. A second segment of the capital increase was approved based on a resolution of the Executive 

Board from 22 June 2005 and the authorisation from 6 June 2005. In total, share capital was increased to 

EUR 222,353,100 through the issue of 163,058,940 shares. 

The annual general meeting on 20 March 2006 approved an increase in share capital by up to EUR 333,529,650 to 

EUR 555,882,750. 

The annual general meeting on 14 September 2006 authorised the Executive Board to increase share capital in 

accordance with § 169 of the Austrian Stock Corporation Act. This authorisation is valid up to 24 November 2011 

and covers an increase of up to EUR 277,941,375 to a total of EUR 833,824,125. This increase of EUR 277,941,375 

was approved and subsequently executed based on resolutions by the Executive Board on 30 April 2007 and 21 May 

2007. 

The share capital of IMMOEAST totalled EUR 555,882,750 as of 30 April 2007 (2005/06: EUR 222,353,100) and is 

divided into 555,882,750 (2004/05: 222,353,100) zero value shares. 

The classification of shares as of 30 April 2007 is as follows: 

Number of shares Share capital EUR Number of shares Share capital EUR 

30 April 2007 30 April 2007 30 April 2006 30 April 2006 

Registered shares 2 2 2 2 

Bearer shares 555,882,748 555,882,748 222,353,098 222,353,098 

Total 555,882,750 555,882,750 222,353,100 222,353,100 

The share premium in the individual financial statements prepared in accordance with Austrian commercial law 

includes appropriated reserves of TEUR 3,613,706.0 (2005/06: TEUR 1,195,616.0) from capital increases made in 

accordance with § 229 (2) 1 of the Austrian Commercial Code in conjunction with § 130 (2) of the Austrian Stock 

Corporation Act. 

The capital increase carried out in 2006/07 generated a premium of TEUR 2,418,090.0 (2005/06: TEUR 962,047.7), 

which was credited to the share premium account. Issue costs of TEUR 69,620.5 (2005/06: TEUR 29,047.5) were 

charged to the share premium account after the deduction of taxes totalling TEUR 23,206.8.

4.10 Financial liabilities 



Thereof remaining term between Thereof remaining 

All amounts in TEUR 30 April 2007 term under 1 year 1 and 5 years term over 5 years 30 April 2006 

Amounts due to financial institutions 1,044,704.5 90,276.6 508,976.9 445,450.9 691,427.9 

Thereof guaranteed 0.0 0.0 0.0 0.0 0.0 

Thereof secured by collateral 1,023,858.3 90,047.7 488,359.6 445,450.9 690,559.8 

Thereof not secured by collateral 20,846.2 228.9 20,617.3 0.0 868.1 

Financial liabilities, limited partnership interest 10,440.0 10,440.0 0.0 0.0 10,440.0 

Other financial liabilities 18,483.9 15,422.8 1,781.0 1,280.2 429.4 

Total 1,073,628.4 116,139.4 510,757.9 446,731.1 702,297.3 

The financial liabilities of TEUR 10,440.0 arising from limited partnership interests were included in the consolidated 

financial statements through the limited partner investment in I-E-H Holding GmbH, as the limited partner, and 

AM-ImmoEast Asset Management GmbH, as general partner and manager of AM-ImmoEast Central European Property 

Fund C.V., and do not affect the unconsolidated partnership capital of the remaining shareholders of AM-ImmoEast 

Central European Property Fund C.V. The shares in AM-ImmoEast Central European Property Fund C.V. represent puttable 

instruments as defined in IAS 32.18 (b) (see point 3.10.6). 

The key conditions of financial liabilities are as follows: 

Nominal value/ Remaining 

original credit liability as of 

amount in 30. April 2007 Interest rate 

Bank Company Currency in 1,000 *) in 1,000 *) fixed/variable 

Segment: CEE 

Country: Czech Republic 

Weighted average interest rate: 5.17% 

Aareal Bank AG Airport Property Development a.s. EUR 12,100.0 10,870.2 variable 

Aareal Bank AG Airport Property Development a.s. EUR 760.0 636.3 variable 

Aareal Bank AG Airport Property Development a.s. EUR 460.0 211.8 variable 

Bank Austria Creditanstalt AG PERL INVEST a.s. EUR 2,699.5 2,532.1 variable 

Bank Austria Creditanstalt AG PERL INVEST a.s. EUR 2,643.9 306.0 fixed 

Bank Austria Creditanstalt AG NP Investment a.s. EUR 13,911.5 13,181.2 variable 

Bank Austria Creditanstalt AG NP Investment a.s. EUR 13,420.1 1,591.5 fixed 

Bank Austria Creditanstalt AG Prokopova Development a.s. EUR 431.9 405.9 variable 

Bank Austria Creditanstalt AG Prokopova Development a.s. EUR 468.1 49.0 fixed 

Bank Austria Creditanstalt AG E.N.G. Property a.s. EUR 2,249.6 2,109.7 variable 

Bank Austria Creditanstalt AG E.N.G. Property a.s. EUR 2,212.2 255.0 fixed 

Bank Austria Creditanstalt AG JUNGMANNOVA ESTATES a.s. EUR 5,665.8 673.0 fixed 

Bank Austria Creditanstalt AG JUNGMANNOVA ESTATES a.s. EUR 5,849.0 5,562.0 variable 

Bank Austria Creditanstalt AG J.H. Prague a.s. EUR 5,061.4 604.0 fixed 

Bank Austria Creditanstalt AG J.H. Prague a.s. EUR 5,219.1 4,894.2 variable 

Bank Austria Creditanstalt AG PAN Development a.s. EUR 3,161.9 369.9 fixed 

Bank Austria Creditanstalt AG PAN Development a.s. EUR 3,239.4 3,039.4 variable 

Bank Austria Creditanstalt AG RHP Development spol.s.r.o. EUR 11,750.0 11,749.7 variable 

Bank Austria Creditanstalt AG Diamant Real s.r.o. EUR 7,631.7 7,631.7 variable 



Bank Austria Creditanstalt AG Diamant Real s.r.o. EUR 538.5 538.5 variable 


Erste Bank der oesterreichischen Sparkassen AG Akvamarin Beta s.r.o. EUR 13,680.0 12,741.4 variable 

Notes 

Report by the Executive Board 207 














Erste Bank der oesterreichischen Sparkassen AG Aragonit s.r.o. EUR 6,000.0 5,258.7 variable 

HVB Bank Czech Republic a.s. Prague Office Park I s.r.o. CHF 2,400.0 1,521.9 fixed 



HVB Bank Czech Republic a.s. Atom Centrum a.s. EUR 15,120.0 14,281.6 variable 

HVB Bank Czech Republic a.s. Centrum Olympia Olomuc a.s. EUR 19,408.3 16,358.1 variable 

HVB Bank Czech Republic a.s. SB Praha 4 spol.s.r.o. EUR 1,489.9 1,422.3 variable 

HVB Bank Czech Republic a.s. SB Praha 4 spol.s.r.o. EUR 1,733.3 976.8 variable 

HVB Bank Czech Republic a.s. SB Praha 4 spol.s.r.o. EUR 7,792.1 2,915.2 variable 

HVB Bank Czech Republic a.s. BB C - Building A, k.s. EUR 2,482.4 2,482.4 variable 



HVB Bank Czech Republic a.s. BB C - Building B, k.s. EUR 2,593.2 2,593.2 variable 

HVB Bank Czech Republic a.s. BB C - Building B, k.s. EUR 17,664.6 17,664.6 variable 

HVB Bank Czech Republic a.s. BB C - Building C, k.s. EUR 2,096.4 2,096.4 variable 

HVB Bank Czech Republic a.s. BB C - Building C, k.s. EUR 13,792.0 13,792.0 variable 

HVB Bank Czech Republic a.s. Centre Investments s.r.o. EUR 200.0 182.7 fixed 

HVB Bank Czech Republic a.s. Centre Investments s.r.o. EUR 600.0 482.8 fixed 

HVB Bank Czech Republic a.s. Centre Investments s.r.o. EUR 1,998.0 1,537.0 fixed 

HVB Bank Czech Republic a.s. Centre Investments s.r.o. EUR 1,871.0 1,411.3 fixed 

HVB Bank Czech Republic a.s. ATLAS 2001 CR s.r.o. EUR 10,006.0 9,046.7 variable 



Investkredit Bank AG WEGE spol.s.r.o. CHF 1,500.3 1,236.0 variable 

Investkredit Bank AG ODP Office Development Praha spol.s.r.o. CHF 3,000.6 2,472.0 variable 

Investkredit Bank AG MY BOX Uherske Hradiste s.r.o. CZK 3,105.1 3,105.1 variable 

Investkredit Bank AG MY BOX Uherske Hradiste s.r.o. CZK 13,956.7 6.4 variable 

Investkredit Bank AG MY BOX Uherske Hradiste s.r.o. EUR 1,904.4 7.4 variable 

Investkredit Bank AG WEGE spol.s.r.o. EUR 936.5 755.5 variable 

Investkredit Bank AG ODP Office Development Praha spol.s.r.o. EUR 2,071.7 1,673.4 variable 

Investkredit Bank AG SBF Development Praha spol.s.r.o. EUR 4,500.0 4,290.5 variable 

Investkredit Bank AG SBF Development Praha spol.s.r.o. EUR 17,300.0 16,958.7 variable 

Investkredit Bank AG MY BOX Hranice s.r.o. EUR 2,092.0 8.8 variable 

Investkredit Bank AG Brno Estates a.s. EUR 15,900.0 15,900.0 variable 

Oberbank AG VALDEK Praha spol.s.r.o. CHF 3,000.0 2,106.8 variable 

Oberbank AG ABLO Property s.r.o. EUR 24,000.0 22,800.0 variable 

Oberbank AG VALDEK Praha spol.s.r.o. EUR 113.7 78.5 variable 

Oberbank AG VALDEK Praha spol.s.r.o. EUR 2,383.3 2,158.2 variable 

Oberbank AG VALDEK Praha spol.s.r.o. EUR 6,879.8 3,300.8 variable 

Oberbank AG NF 23 spol.s.r.o. EUR 1,205.8 1,027.9 variable 

Raiffeisen Zentralbank Österreich AG Delta Park a.s. EUR 15,500.0 13,750.0 variable 

Segment: CEE 

Country: Hungary 


Bank Austria Creditanstalt AG Arpad Center Kft. EUR 6,500.0 5,348.0 variable 

Bank Austria Creditanstalt AG Globe 13 Kft. EUR 21,000.0 17,220.0 variable 

Bank Austria Creditanstalt AG Lentia Real (1) Kft. EUR 10,800.0 8,936.0 variable 

Bank Austria Creditanstalt AG Szepvölgyi Business Park Kft. EUR 10,500.0 9,600.0 variable 

Erste Bank der oesterreichischen Sparkassen AG Globe 3 Ingatlanfejlesztö Kft. CHF 5,880.3 5,117.0 variable 

Erste Bank der oesterreichischen Sparkassen AG C.E.P.D. Kft. EUR 26,750.0 24,292.5 variable

Report by the Executive Board 




209 









Bank Company Currency in 1,000 *) in 1,000 *) Notes 

fixed/variable 

Erste Bank der oesterreichischen Sparkassen AG DH Logistik Kft. EUR 4,400.0 4,013.5 variable 

Erste Bank der oesterreichischen Sparkassen AG West Gate Üzleti Park Fejlesztö Kft. EUR 3,642.7 1,988.1 variable 

Erste Bank der oesterreichischen Sparkassen AG West Gate Üzleti Park Fejlesztö Kft. EUR 12,075.3 8,964.4 variable 

Erste Bank der oesterreichischen Sparkassen AG West Gate Üzleti Park Fejlesztö Kft. EUR 13,736.5 440.4 variable 

Erste Bank der oesterreichischen Sparkassen AG Globe 3 Ingatlanfejlesztö Kft. EUR 6,540.6 669.6 variable 

HVB Hungary Rt. SAS Inter Kft. EUR 9,056.0 8,176.7 variable 

HVB Hungary Rt. SAS Inter Kft. EUR 200.0 115.1 variable 

HVB Hungary Rt. SAS Inter Kft. EUR 500.0 303.4 variable 

HVB Hungary Rt. Euro Businesspark Kft. EUR 15,880.0 14,011.9 variable 

HVB Hungary Rt. Euro Businesspark Kft. EUR 800.0 800.0 variable 

HVB Hungary Rt. Euro Businesspark Kft. EUR 13,154.3 13,154.3 variable 

Raiffeisen Zentralbank Österreich AG Mester Park Kft. EUR 12,990.0 8,134.0 variable 

Raiffeisenlandesbank Oberösterreich AG Center Invest Kft. EUR 8,900.0 7,874.9 variable 


Raiffeisenlandesbank Oberösterreich AG Center Invest Kft. EUR 7,281.8 6,072.4 variable 




Segment: CEE 

Country: Poland 


Aareal Bank AG Nowe Centrum Sp. z o.o. EUR 101,000.0 85,107.0 variable 

Aareal Bank AG MBP I Sp. z o.o. EUR 74,212.5 70,830.8 variable 

Bank Austria Creditanstalt AG Blizzard Real Sp. z o.o. EUR 25,217.5 18,538.0 variable 

Bank Austria Creditanstalt AG Passat Real Sp. z o.o. EUR 15,100.0 12,480.3 variable 

Bank Zachodni WBK S.A. Silesia Residential Project Sp. z o.o. PLN 40,363.6 8,613.0 variable 

Bank Zachodni WBK S.A. Silesia Residential Project Sp. z o.o. PLN 4,200.0 1,075.7 variable 

Bank Zachodni WBK S.A. Debowe Tarasy Sp. z o.o. II sp.k. PLN 43,400.0 2,777.7 variable 

Bank Zachodni WBK S.A. Debowe Tarasy Sp. z o.o. II sp.k. PLN 6,300.0 77.3 variable 

Erste Bank der oesterreichischen Sparkassen AG Atlantis Invest Sp. z o.o. USD 805.1 731.9 variable 

Erste Bank der oesterreichischen Sparkassen AG Omega Invest Sp. z o.o. USD 15,284.1 12,309.4 variable 

Erste Bank der oesterreichischen Sparkassen AG ARE 4 Sp. z o.o. EUR 10,400.0 9,148.3 variable 

Erste Bank der oesterreichischen Sparkassen AG Central Bud Sp. z o. o. EUR 9,800.0 8,861.4 variable 

Erste Bank der oesterreichischen Sparkassen AG Al Sp. z o.o. EUR 12,950.0 1,491.2 variable 

Erste Bank der oesterreichischen Sparkassen AG Atlantis Invest Sp. z o.o. EUR 12,950.0 8,689.3 variable 

Erste Bank der oesterreichischen Sparkassen AG Ol Sp. z o.o. EUR 6,739.0 5,645.6 variable 

Erste Bank der oesterreichischen Sparkassen AG Omega Invest Sp. z o.o. EUR 3,712.9 2,987.7 variable 


Erste Bank der oesterreichischen Sparkassen AG Secure Bud Sp. z o.o. EUR 12,700.0 8,505.0 variable 


Erste Bank der oesterreichischen Sparkassen AG ARE 8 Sp. z o.o. EUR 450.0 450.0 variable 

Erste Bank der oesterreichischen Sparkassen AG Equator Real Sp. z o.o. EUR 15,402.0 2,880.8 variable 

Erste Bank der oesterreichischen Sparkassen AG Zenith Real Sp. z o.o. EUR 1,275.0 718.9 variable 

Erste Bank der oesterreichischen Sparkassen AG Nimbus Real Sp. z o.o. EUR 1,004.5 681.5 variable 

Erste Bank der oesterreichischen Sparkassen AG Cirrus Real Sp. z o.o. EUR 1,198.5 684.8 variable 

Erste Bank der oesterreichischen Sparkassen AG Immofinanz Polska Sp. z o.o. EUR 9,000.0 7,965.0 variable 

Investkredit Bank AG Flex Invest Sp. z o.o. USD 18,388.5 17,728.6 variable 

Investkredit Bank AG Flex Invest Sp. z o.o. EUR 1,600.0 1,600.0 variable 

Investkredit Bank AG Flex Invest Sp. z o.o. EUR 4,894.5 4,733.2 variable






Segment: CEE 

Country: Slovakia 


MKB Bank Lt. IMMOEAST Projekt Jota Holding GmbH EUR 52,000.0 52,000.0 variable 

MKB Bank Lt. Polus a.s. EUR 61,000.0 61,000.0 variable 

Slovenska sporitelna a.s. Polus Tower 2 a.s. EUR 36,000.0 34,554.6 variable 

UniBanka a.s. SCT s.r.o. EUR 4,400.0 4,325.2 variable 

Segment: SEE 

Country: Romania 


Alpha Bank S.C. Valero Invest s.r.l. RON 3,593.0 3,593.0 variable 

Bank Austria Creditanstalt AG S.C. Almera New Capital s.r.l. EUR 618.0 618.0 variable 



Bank Austria Creditanstalt AG S.C. Almera New Capital s.r.l. EUR 1,500.0 181.1 variable 

EFG Private Bank SA S.C. Meteo Business Park s.r.l. EUR 2,136.0 2,136.0 variable 

EFG Private Bank SA S.C. Meteo Business Park s.r.l. EUR 2,447.5 2,447.5 variable 

EFG Private Bank SA S.C. Stupul de Albine s.r.l. EUR 1,468.5 1,468.5 variable 

EFG Private Bank SA S.C. Stupul de Albine s.r.l. EUR 2,447.5 2,447.5 variable 

Erste Bank der oesterreichischen Sparkassen AG SC EFG Urban Achizitii s.r.l. EUR 20,000.0 20,000.0 variable 

Erste Bank der oesterreichischen Sparkassen AG S.C. Baneasa 6981 s.r.l. EUR 6,250.0 6,129.3 variable 



European bank for reconstruction and development IRIDE S.A. EUR 17,955.9 15,956.9 variable 

European bank for reconstruction and development IRIDE S.A. EUR 22,500.0 21,019.4 variable 

European bank for reconstruction and development IRIDE S.A. EUR 14,007.1 8,188.7 variable 

Hypo Real Estate Bank International AG Cora GS s.r.l. EUR 19,670.0 19,670.0 variable 

*) reflects stake owned 

The present value of the loans listed in the above table totals EUR 1,022.8 million. The present value calculation was 

based on the following discount rates, which reflect market interest rates as of 30 April 2007 as well as the weighted 

average margins of the loans held by IMMOEAST Group companies in the relevant local currencies as of the balance 

sheet date. 

Discount rates in % RON PLN CZK CHF EUR USD 

Up to 30 7.2007 3.521% 5.983% 4.285% 4.004% 5.600% 6.914% 

Up to 30 4.2008 4.249% 6.303% 4.480% 4.175% 5.892% 6.853% 

Up to 30 4.2010 4.475% 6.402% 4.541% 4.228% 5.983% 6.561% 

Up to 30 4.2012 4.501% 6.414% 4.547% 4.234% 5.993% 6.599% 

Up to 30 4.2014 4.553% 6.437% 4.561% 4.246% 6.014% 6.673% 

Up to 30 4.2017 4.709% 6.505% 4.603% 4.283% 6.077% 6.778% 

Up to 30 4.2022 4.942% 6.608% 4.666% 4.338% 6.170% 6.883% 

As of 1.5.2022 5.046% 6.654% 4.694% 4.362% 6.212% 6.930%

4.11 Trade accounts payable 




Trade accounts payable 106,981.1 105,086.3 1,736.5 158.3 48,693.4 

Total 106,981.1 105,086.3 1,736.5 158.3 48,693.4 

4.12 Provisions 


Other provisions were created primarily for taxes as well as auditing, consulting and expert opinion costs. These 

items developed as follows during the reporting year: 

Other provisions 


Balance on 1 May 11,206.6 2,190.4 

Use -7,986.3 -1,562.6 

Reversal -853.6 -1,095.1 

Addition 8,990.1 8,980.8 

Currency translation adjustments 286.1 310.1 

Change in consolidation method 1,877.6 66.6 

Change in consolidation range 630.0 2,316.4 

Balance on 30 April 14,150.5 11,206.6 

Thereof current 12,255.7 9,609.1 

Other provisions include TEUR 3,217.7 (2005/6: TEUR 3,121.3) of provisions for taxes. 

4.13 Other liabilities 





Amounts due to subsidiaries 4,648.8 0.0 0.0 4,648.8 4,528.7 

Amounts due to joint ventures 27,303.5 2,345.7 970.7 23,987.0 2,696.9 

Outstanding purchase prices (share deals) 38,965.6 37,399.8 1,565.8 0.0 31,332.7 

Rental and lease prepayments 29,285.6 20,975.6 4,605.8 3,704.3 13,166.4 

Taxation authorities (transaction taxes) 4,079.3 4,079.3 0.0 0.0 2,184.6 

Taxation authorities (income taxes) 944.1 944.1 0.0 0.0 152.0 

Property management 1,166.7 1,134.9 31.7 0.0 1,702.4 

Construction and refurbishment 110.5 110.5 0.0 0.0 206.1 

Miscellaneous 30,744.8 18,330.6 3,013.1 9,401.2 20,386.0 

Total 137,248.8 85,320.5 10,187.1 41,741.3 76,355.7 

Miscellaneous liabilities include TEUR 1,127.9 of liabilities owned by a fully consolidated company to a minority 

shareholder as well as TEUR 367.3 of derivative financial instruments. In addition, accrued interest expense on loans 

is also included under this item. 

Notes 










IAS 37.84


IAS 12.81 (g), 

IAS 12.82 

4.14 Contingent liabilities and guarantees 


Contingent liabilities are valued in accordance with IAS 37 and IFRS 3.48 (see 3.12). The Group had no outstanding 

guarantees as of the balance sheet date. 

4.15 Deferred taxes 


Through an agreement dated 29 April 2005, the major Austrian companies have joined together in a group as defined 

in § 9 of the Austrian Corporate Tax Act as set forth in the Austrian Tax Act. The parent company, IMMOEAST, serves 

as the head of the group. Taxable income earned by the individual members of the group is allocated to the head of 

the group after an offset against any (individual company) losses. A tax charge is included in the group contract as 

settlement for the transfer of taxable income. 

Deferred tax assets and deferred tax liabilities as of 30 April 2007 and 30 April 2006 are the result of the following 

timing differences in valuation or accounting treatment between the carrying values in the consolidated financial 

statements under IFRS and the related tax bases. Furthermore, deferred tax assets were created for tax loss carryforwards 

in cases where it is probable that sufficient taxable income will be available to utilise these tax loss carryforwards 

in the future. 


All amounts in TEUR Assets Liabilities Assets Liabilities 

Property 13,761.9 444,419.8 5,105.4 170,880.4 

Other financial assets and miscellaneous assets 5,709.6 11,457.8 4,142.5 6,541.7 

Total 19,471.5 455,877.6 9,247.9 177,422.1 

Other liabilities and provisions 1,961.0 1,803.0 1,128.2 1,158.4 

Financial liabilities 1,018.4 15,418.5 755.2 8,366.2 

Total 2,979.4 17,221.5 1,883.4 9,524.6 

Tax loss carryforwards 38,638.1 0.0 11,911.2 0.0 

Net sum of deferred tax assets and deferred tax liabilities 61,089.0 473,099.1 23,042.5 186,946.7 

The tax rates in the individual countries are listed below: 

Country Applicable tax rate 

Austria 25.00% 

Bosnia and Herzegovina 10.00% *) 

Bulgaria 10.00% 

Croatia 20.00% 

Cyprus 10.00% 


Estonia 28.21% **) 

Germany 26.38%-40.86% ***) 

Hungary 16.00% 

Luxembourg 29.63% 

Malta 35.00% 

Netherlands 25.50% 

Country Applicable tax rate 

Poland 19.00% 

Romania 16.00% 

Russia 24.00% 

Serbia 10.00% 

Slovakia 19.00% 

Slovenia 25.00% 

Sweden 28.00% 

Ukraine 25.00% 

*) Republika Srpska **) Applies only to distributions, retained earnings are not taxed 

***) The tax rate in Germany can vary, depending on whether the company is subject to trade tax

The corporate income tax rate in Bulgaria was reduced from 15% to 10% as of 1 January 2007 following a change in 

the relevant law. 

In Estonia, corporate profits are only taxed if they are distributed. Retained earnings are not taxed. A change in the 

corporate income tax act during June 2005 will lead to a gradual reduction of 1% per year in the Estonian corporate 

tax rate by 2009 and result in the following tax rates: 

2007: 22/78 = 28.21% 

2008: 21/79 = 26.58% 

2009: 20/80 = 25% 

In the Netherlands an amendment to the corporate income tax act took effect on 1 January 2007 and reduced the 

corporate income tax rate to 25.5%. 

A tax reform was approved in the Czech Republic, which will lower the corporate income tax rate from 24% to 22% in 

2008, 20% in 2009 and 19% in 2010. 

5. Notes to the Income Statement 

5.1 Revenues 


Detailed information on revenues is presented by region (primary segmentation) and sector (secondary segmentation) 

under segment reporting, which forms an integral part of these consolidated financial statements. 

In accordance with IFRS 8, the management approach must be used to define the segments of business. The key 

element of this approach is the identification of operating segments based on internal management processes. 

The classification of rental income by sector is shown in the following table: 

All amounts in TEUR 2006/07 % 2005/06 % 

Offices 74,054.4 50.67% 35,122.1 59.20% 

Logistics/commercial 68,544.1 46.90% 22,765.3 38.37% 

Residential 55.4 0.04% 55.2 0.09% 

Car parks and parking spaces 3,497.3 2.39% 1,381.0 2.33% 

Rental income 146,151.2 100.00% 59,323.6 100.00% 

Sale of inventories 818.2 277.0 

Operating costs charged on to tenants 40,830.1 18,596.5 

Other revenues 5,120.9 1,817.4 

Total 192,920.4 80,014.5 

Notes 











5.2 Revaluation 


The revaluation of investment properties is based primarily on the principles described in point 3.4. 


Revaluation 567,003.6 133,463.8 

Impairment charges -73,908.5 -16,477.7 

Total 493,095.1 116,986.1 

Impairment charges were recognised to the following properties during 2006/07: 


Object Country Segment Impairment charge 

BBC Centrum Building B CZ CEE -10,202.58 

Jungmannova CZ CEE -2,983.23 

Valdek Jugoslavka 29 CZ CEE -1,040.78 

Prague Office Park CZ CEE -580.20 

Anglicka CZ CEE -577.03 

Prokopova CZ CEE -568.67 

ARBES Stafnikova 32+34 CZ CEE -562.63 

Impairment charges – Czech Republic -16,515.12 

Dunaharaszti H CEE -5,533.81 

Arpad Center H CEE -5,447.73 

Budapest, Green Point 7 H CEE -4,402.94 

Globe 3 H CEE -3,046.98 

Camel Park (Euro Business Park) H CEE -1,469.69 

Central Business Centre H CEE -905.38 

Shark Park H CEE -577.42 

Budapest Pharma Park H CEE -283.55 

Szepvölgyi Business Park H CEE -191.52 

Impairment charges – Hungary -21,859.02 

Crown Tower PL CEE -8,411.90 

Cybernetyki Office Center PL CEE -6,702.06 

Crown Point PL CEE -5,492.94 

Bokserska Office Center PL CEE -4,276.28 

Bokserska Distribution Park PL CEE -2,616.98 

Lopuszanska PL CEE -1,530.14 

Silesia Logistik Center (ARE 8) PL CEE -1,453.48 

MBP Vega (Land ) PL CEE -981.82 

“real”- Markt Wloclawek PL CEE -680.75 

Impairment charges – Poland -32,146.37 

Millenium Tower I SK CEE -3,307.52 

Impairment charges – Slovakia -3,307.52 

Global Business Center RO SEE -80.47 

Impairment charges – Romania -80.47 

Total impairment charges -73,908.50

The impairment charges to the following properties resulted solely from an increase in the value of the local currency 

against the Euro. The Euro fair values of these objects as of 30 April 2007 exceed the Euro fair values as of 30 April 

2006 at these exchange rates, and an impairment charge was required because the carrying value exceeded the fair 

value that resulted from the translation from local currency into the Group currency: 

• Global Business Center • Szepvölgi Business Park 

• Pharma Park • Camel Park 

• Shark Park • Millenium Tower I 

An impairment charge was recognised for the Arpad Centre because of the high vacancy rate, which exceeds 50% of 

the available office space. In addition, the valuation return was raised to better reflect the increased rental risk. 

The loss of the tenant for the Dunaharaszti logistics hall was reflected in an appropriate impairment charge. The 

discount factor was also increased to adequately reflect the risk associated with a new rental. 

An impairment charge was recognised for the Globe 3 office property due to the vacancy rate, which equals roughly 

20% of the available space. The rental risk was reflected through an increase in the valuation return. 

The property valuation experts have classified the following objects as “over-rented”, which means the market rents 

realisable after the end of the current contracts will be less than the rents currently paid by tenants: 

• Bokserska Distribution Park • Bokserska Office Center 

• Crown Point • Crown Tower 

• Cybernetiki Office Center • Lopuszanska 

• Green Point 7 • Silesia Logistik Center 

The other impairment charges were generally based on an increase in foreign exchange rates against the Euro as well 

as investments that did not lead to an increase in the value of the objects. 

In 2006/07 revaluations were recognised for the following sites, which are recognised and measured in accordance 

with IAS 40: 


Object Country Segment Revaluation 

Kalisz PL CEE 412.66 

Equator PL CEE 1,574.04 

Cirrus PL CEE 2,232.00 

Zenith PL CEE 2,360.65 

Nimbus PL CEE 5,126.45 

Revaluation to land – Poland 11,705.79 

Jandarmeriei Office RO SEE 19,084.72 

Harbourside Constanta RO SEE 21,466.40 

Craiova RO SEE 32,543.68 

Revaluation to land – Romania 73,094.80 

Antim Tower (land) BG SEE 78,740.42 

Revaluation to land – Bulgaria 78,740.42 

Total revaluations to land 163,541.01 

Notes 

As explained under point 3.4, this land was purchased to provide sites for the construction of investment properties. 

The other revaluations are related to investment properties. 











IAS1.34(a) 

IFRS 3.56 (b) 

The following properties were recognised in accordance with IAS 40 and are classified as redevelopment objects. 

They include revaluation gains that were determined on the basis of the residual value method: 

Object Country Segment Revaluation 

Perlova 5 (Perl Invest) CZ CEE 4,944.9 

Na Prikope (NP Investment) CZ CEE 21,981.6 

Jungmannova (Jungmannova Estates) CZ CEE 3,347.4 

Jindirska (J.H.Prague) CZ CEE 4,786.7 

Panska (PAN Development) CZ CEE 5,349.8 

Total revaluation 40,410.5 

The valuation procedure follows the principles described under point 3.4. 

5.3 Other operating income 


Income from the disposal of properties 14,053.1 0.0 

Reversal of negative goodwill 5,015.2 43,951.0 

Reversal of provisions 1,054.9 589.3 

Insurance compensation 36.5 3.8 

Currency translation adjustments 15,411.4 1,199.6 

Miscellaneous 10,153.5 5,590.8 

Total 45,724.6 51,334.4 

In accordance with IAS 1.34 (a), income from the sale of properties is presented net of the book value of the disposal. 

The amount shown above represents the sale of the Europe Tower in Budapest. 

Miscellaneous other operating income includes subsequent reductions in the purchase price of properties. Of this 

total, TEUR 2,678.5 are related to acquisitions in Hungary and TEUR 3,142.4 to acquisitions in Slovakia. A further 

TEUR 892.8 represent expenses charged to other parties. 

5.4 Depreciation and amortisation 

Information on depreciation and amortisation is included in the notes on property under construction (4.1.2), tangible 

assets (4.2), intangible assets (4.3.1) and goodwill (4.3.2). 

5.5 Expenses related to properties 


Operating costs charged on 41,031.0 17,999.0 

Bad debt allowances 2,451.0 1,602.4 

Vacancies 1,705.5 819.2 

Commissions 1,339.6 330.8 

Maintenance 747.1 12.3 

Other current expenses 1,576.7 6.1 

Other directly allocated expenses 5,421.8 2,258.1 

Total 54,272.7 23,027.9 

Other directly allocated expenses are comprised entirely of costs associated with property ownership.

5.6 Other operating expenses 


Administration 50,366.4 17,427.5 

Legal, auditing and consulting fees 8,312.4 6,028.8 

Taxes and duties 4,666.7 1,915.1 

Commissions 3,408.5 2,998.5 

Penalties 4,134.8 1,669.1 

Advertising 1,914.1 1,544.3 

Rental and leasing expenses 215.3 230.9 

Remuneration for Supervisory Board 97.5 195.0 

Expert opinions 2,254.9 446.1 

Translations 32.3 16.8 

Miscellaneous 15,811.5 4,372.1 

Total 91,214.4 36,844.1 

Miscellaneous other operating expenses include TEUR 269.4 of expenses charged on and TEUR 9,748.3 of currency 

translation adjustments that were allocated to the operating area. 

Point 4.3.4 provides information on differences, which arose during the consolidation of liabilities and are related to 

puttable instruments. 

Information on closely related parties and persons (management fees) is provided under point 8.4.1.1. 

5.7 Personnel expenses 

The average workforce employed by companies included in the consolidated financial statements developed as 

follows: 


Wage employees 0 0 

Salaried employees 16 4 

Total 16 4 

Five persons were employed by Mester Park Kft. and four persons by ELCO Sp.z.o.o., an energy supply company that 

is owned by Nowe Centrum Sp.z o.o; three persons were employed by Alacor project companies which, in turn, are 

owned by Roches Ventures Ltd., a Cypriote holding company. Three employees work for each of the following: the 

Russian OOO Torgoviy Dom Na Khodinke; Krona Design LLC; and Wakelin Promotions Ltd. One employee works for 

the Romanian IRIDE S.A. 


Wages 37.5 2.8 

Salaries 205.4 18.1 

Expenses for pensions 19.6 3.1 

Other personnel expenses 67.3 0.4 

Total 329.8 24.4 

Notes 

5.8Costofgoodssold 

The cost of goods sold totalled TEUR 818.2 (2005/06: TEUR 301.2) and is related to inventories (see point 4.8). 











IFRS 7.20 (a) 

5.9 Financial results 


Interest and similar income 56,573.3 15,465.7 

Interest and similar expenses -42,441.5 -17,078.6 

Net financing costs 14,131.8 -1,612.9 

Profit/(loss) on financial instruments and proceeds on the disposal of financial instruments 36,015.1 7,850.9 

Currency translation adjustments 34,356.6 11,141.5 

Profit/(loss) on financial instruments at fair value through profit or loss 12,414.6 6,829.4 

Income from distributions 5,422.2 3,670.5 

Share of profit/(loss) from investments in other companies 1,122.7 0.0 

Profit/(loss) on financial instruments 89,331.2 29,492.3 

Share of profit/(loss) from associated companies 700.6 -1,203.1 

Financial results 104,163.5 26,676.3 

The valuation of financial instruments at fair value through profit or loss comprises a revaluation of TEUR 13.872,1 

and an impairment charge of TEUR 1,457.5. The impairment consists of a TEUR 947.1 charge to the investment in 

FF&P Russia Real Estate Ltd. and a TEUR 510.4 charge to the investment in Prime Property BG Reit. These impairment 

charges resulted from start-up losses and founding costs. 

The share of profit/(loss) from associated companies includes distributions of TEUR 3,777.8 (2005/06: TEUR 3,009.8) 

from Heitman Central Europe Property Partners II, TEUR 216.0 from Eastern Property Holdings Ltd and TEUR 597.7 

(2005/06: TEUR 657.8) from FF&P Russia Real Estate Limited. 

IFRS 7.20 (a) requires the disclosure of net gains and losses for each category of financial instrument defined in 

IAS 39.9. This information is presented in the following table: 

Designated at fair value through profit and loss Held for trading 

All amounts in TEUR Investments in other companies Derivatives 

Revaluation 13,872.1 1,446.5 

Impairment charge -1,457.5 -364.5 

Net gains/(losses) 12,414.6 1,082.0 

Currency translation adjustments are immaterial, and are therefore not shown separately. 

5.10 Income taxes 


This item includes income taxes paid or owed by Group companies as well as provisions for deferred taxes. 


Income tax expense -11,926.1 -2,900.2 

Deferred taxes -97,343.0 -34,754.1 

Total -109,269.1 -37,654.3 

The difference between calculated income tax expense and actual income expense for 2006/07 as shown on the 

income statement is due to the following factors:


Earnings before tax 645,452.2 182,945.6 

Income tax expense at tax rate of 25% -161,363.0 25.0% -45,736.4 25.0% 

Different tax rates 39,005.6 -6.0% 8,548.5 -4.7% 

Changes in tax rates 0.0 0.0% 0.0 0.0% 

Amortisation of goodwill/reversal of negative goodwill -9,557.2 1.5% 3,305.3 -1.8% 

Balance sheet recognition of losses, not through profit or loss 23,206.8 -3.6% 0.0 0.0% 

Non-deductible expenses -5,237.3 0.8% -2,485.6 1.4% 

Tax-free income 7,728.0 -1.2% 2,592.4 -1.4% 

Valuation adjustments to deferred taxes -2,370.3 0.4% -2,671.0 1.5% 

Effects related to other periods and other non-temporary differences -681.7 0.1% -1,207.6 0.7% 

Effective tax rate -109,269.1 16.9% -37,654.3 20.6% 

6. Notes to the Cash Flow Statement 

The Cash Flow Statement for the IMMOEAST Group shows the changes in cash and cash equivalents resulting from 

the inflow and outflow of funds during the reporting year. The Cash Flow Statement distinguishes between cash flows 

from operating activities, investing activities, and financing activities. Cash flow from operating activities is calculated 

using the indirect method in accordance with IAS 7.18 (b). Cash and cash equivalents of TEUR 22,529.2 (2005/06: 

TEUR 14,129.0) are attributable to companies consolidated on a proportionate basis. All information required by 

IAS 7 is provided in the statement of cash flows. The following assets and liabilities, which were acquired through 

the purchase of property companies, are stated at present value: 



Intangible assets (excluding goodwill) 4.1 99.6 


Deferred tax assets 4,292.9 7,265.1 

Property 968,167.5 889,706.1 

Tangible assets 702.2 1,292.7 


Trade accounts payables -18,253.7 -16,578.4 


Provisions -630.0 -2,316.4 


Minority interests -7,399.5 -0.1 

Currency translation adjustment -2,451.0 886.2 


(Negative) goodwill 200,655.1 -13,974.7 

Outstanding purchase prices -50,857.4 -50,681.7 

Purchase prices paid in cash 700,340.0 279,670.9 

Less cash and cash equivalents acquired -47,614.9 -19,143.2 

Net purchase price for property companies 652,725.1 260,527.6 

Notes 










IAS7.18(b)


IAS 7.7 

Purchase prices totalling TEUR 700,340.0 (2005/06: TEUR 279,670.9) for property companies were paid in cash. 

The following assets and liabilities at fair value were taken over following the acquisition of additional shares in companies 

(transition consolidation). These transactions led to a change in the consolidation method (also see point 2.3): 



Intangible assets (excluding goodwill) 0.0 12.6 


Deferred tax assets 1,683.9 1,211.1 

Property 162,833.7 42,073.1 

Tangible assets 45.2 9.0 


Trade accounts payable -1,634.6 -383.7 

Provisions -1,877.6 -66.6 



Currency translation adjustment -1,121.9 -2,156.3 


(Negative) goodwill 18,445.9 -406.9 

Outstanding purchase prices -3,475.2 0.0 

Total purchase prices 83,186.6 20,046.1 

Less cash and cash equivalents acquired -3,776.5 -1,737.6 

Net purchase price for property companies 79,410.1 18,308.6 

Purchase prices totalling TEUR 83,186.6 (2005/06: TEUR 20,046.1) for the acquisition of additional shares were paid 

in cash. 

Cash and cash equivalents are comprised of the following: 


Current securities 300,000.0 101,966.0 


Total 702,146.3 317,728.7 

Cash and cash equivalents include EUR 285.4 million in EUR, EUR 13.4 million in CZK, EUR 13.1 million in HUF, 

EUR 46.6 million in PLN, EUR 14.9 million in RON, EUR 13.1 million in SKK and EUR 15.6 million in other currencies. 

Liquidity as shown on the Cash Flow Statement is comprised of cash and cash equivalents and current securities. In 

accordance with IAS 7.7, current securities are classified as cash and cash equivalents if their remaining term is less 

than three months. All assets included under cash and cash equivalents meet this criterion as of the balance sheet 

date.

7. Segment Reporting 

IFRS 8 Operating Segments (convergence standard for segment reporting) 

The IASB issued International Financial Reporting Standard 8 Operating Segments as part of a joint project with 

the US Financial Accounting Standards Board (FASB) to reduce the differences between IFRS and US GAAP. IFRS 8 

replaces IAS 14 and achieves convergence with the requirements of SFAS 131. IFRS 8 requires companies to provide 

financial and descriptive information on their reportable segments, whereby this standard calls for the identification 

of operating segments based on the internal management focus of the company (management approach). In keeping 

with this approach, the presentation of the segments must reflect the same basis used for internal reporting. IFRS 8 

applies to annual periods beginning on or after 1 January 2009. The early application of IFRS 8 to these consolidated 

financial statements leads, above all, to additional disclosures in the notes and provide a more detailed insight into 

segment financial position and performance. 

IFRS 8 is applicable to financial years beginning after 31 December 2008. Earlier application of this standard is permitted 

and recommended, and the consolidated financial statements for 2006/07 make use of this option. 

The requirements for segment reporting were previously part of external reporting, a subject area where the international 

standards – IFRS and US-GAAP – differed. The requirements of SFAS 131 are based above all on internal 

reporting, while IAS 14 – the previous standard for segment reporting – calls for the derivation of disaggregated 

information according to independent principles that are anchored in external reporting. In particular, IFRS 8 calls for 

the application of the management approach for reporting on the economic development of the individual segments. 

The management approach assumes that the units defined for internal reporting and decision-making as well as the 

operating management of a company are also relevant for external segment reporting since the best information for 

segmentation is available to management. IAS 14 calls for the use of the risk and reward approach for segmentation. 

This approach requires the definition of segments on the basis of homogeneous risks and opportunities, which 

means the segments should represent separate components of the company that are differentiated in a way that the 

scope of their activities differs substantially with respect to risks and rewards. 

IAS 14 requires the disclosure of information according to a more detailed primary and a less detailed secondary 

format. 

In accordance with IFRS 8.5 ff., a component of an entity is an operating segment 

• if it engages in activities from which it may earn revenues and incur expenses, including revenues and expenses 

relating to transactions with other components of the same entity 

• if its operating results are regularly reviewed by the entity’s decision-makers and used to assess performance and 

allocate resources, and 

• discrete financial information is available on the component. 

IFRS 8.13 includes quantitative thresholds for the identification of reportable operating segments. The reporting 

obligation is triggered by three alternative criteria: 

• Revenue, including both sales to external customers and intersegment sales, equals at least 10% of the combined 

external and intersegment revenue of all operating segments, or 

• The reported segment profit or loss equals at least 10% of the greater of the combined reported profit of all operating 

segments that did not report a loss, and the combined reported loss of all operating segments that reported a 

loss, or 

• Segment assets equal at least 10% of the combined assets of all operating segments. 

Notes 










IFRS 8.35 

IFRS 8.5 

IFRS 8.13


IFRS 8.14 

IFRS 8.15 

IFRS 8.19 

IFRS 8.23 

IFRS 8.27 

IFRS 8.22 

Two or more operating segments may be aggregated into a single operating segment if they have similar economic 

characteristics that lead to expectations of comparable long-term development and if they meet the aggregation 

criteria defined in IFRS 8.12. 

These rules largely reflect the provisions of IAS 14. However in contrast to IAS 14.35, the segment is no longer 

required to earn the majority of its revenues from sales to external customers. 

Additional operating segments must be defined until at least 75% of the total segment revenue is generated by sales 

to external customers. There is no predefined order for this selection. 

Segments that were classified as significant in the previous year must still be presented separately if they are of 

continuing significance. Segments that are considered to have a special relevance are also designated as reportable, 

e.g. rapidly growing fields of business or high-risk areas. 

In agreement with SFAS 131.24, IFRS 8.19 recommends limiting the number of reportable segments to ten so as not 

to endanger relevance and understandability. However, there is no limit on the number of reportable segments and 

this recommendation is solely related to voluntary segment disclosures. 

In accordance with the management approach, the entity must disclose the measure of segment profit or loss that is 

used for internal management and reporting purposes. The following amounts must also be disclosed if they are 

included in reported profit or loss, or are regularly provided to management: 

• segment revenues from external customers; 

• intersegment revenues; 

• interest expense and income (not netted out, unless this figure is used for internal management purposes); 

• material items of income and expense as defined in IAS 1.86; 

• the entity’s interest in investments consolidated at equity; 

• income tax expense or income; 

• material non-cash items other than depreciation, amortisation and impairment charges. 

• segment liabilities must also be disclosed if these figures are used for internal management purposes. 

Additional information must also be provided on assets if the relevant amounts are included in segment assets or 

are otherwise regularly provided to management: 

• the carrying values of investments consolidated at equity; 

• additions to non-current assets. 

In accordance with IFRS 8.27, the quantitative data provided on the segments should be accompanied by explanations 

covering – as a minimum – the accounting and valuation methods applied. In addition, general information 

should be disclosed to provide insight into the nature of business activities and internal reporting. This information 

is designed to support an understanding of the presentation of data and identification of segments in accordance 

with the management approach. IFRS 8.22 requires the disclosure of: 

• the factors used to identify the reportable segments, including the internal organisational structure, and 

• the products and services from which the individual segments derive their revenues. 

The central decision-maker of IMMOEAST is the Executive Board as a collegial body. Internal reporting to the Executive 

Board is based on country information that comprises the income statements from the individual countries 

including the related elimination of income, expenses and interim profits as well as the holding companies that are 

allocated to the relevant country operating organisations. The Executive Board is also provided with information on 

country-specific cash flows.

IMMOEAST is a property company that invests exclusively in properties located on markets in Eastern Europe. The 

core market of IMMOEAST AG covers three regions: Central and Eastern Europe (CEE) with investments in the Czech 

Republic, Poland, Slovakia, Hungary and Estonia; South-eastern Europe (SEE) with investments in Croatia, Romania, 

Bulgaria, Slovenia and Serbia; as well as the Community of Independent States (CIS) with investments in Russia 

and Ukraine. The identification of segments by IMMOEAST AG follows the internal reporting structure and meets 

the materiality criteria defined in IFRS 8.13 (see following table). The property portfolio of IMMOEAST is diversified 

through two types of segments: regional segments (primary segments) Central and Eastern Europe (CEE: subdivided 

into Hungary, the Czech Republic, Poland and Slovakia), South-eastern Europe (SEE: subdivided into Romania, Slovenia, 

Serbia, Bulgaria and Croatia) and the Community of Independent States (CIS: Russia and Ukraine) as well as 

sector segments that reflect the type of property (secondary segments) such as office, logistics, commercial, hotel 

and residential. The activities of the Group are concentrated primarily on the purchase and rental of properties as 

well as the widely diversified investment in properties with various types of use – ranging from apartments, offices, 

hotels, logistics and commercial space up to garages in Central and South-eastern Europe. According to IFRS 8.13, 

an operating segment qualified as reportable if it generates at least 10% of the combined segment revenue, segment 

profit or segment assets. 

The following table explains the materiality criterion for the identification of segments: 

Segment CEE SEE CIS IMMOEAST Group 

Values in million 

Segment revenue 

2006/07 2005/06 2006/07 2005/06 2006/07 2005/06 2006/07 2005/06 

Absolute amount 142.2 65.9 26.0 14.1 24.7 0.0 193.0 80.0 

Relative amount 

Segment profit 

73.7% 82.4% 13.5% 17.6% 12.8% 0.0% 

Absolute amount 224.4 92.2 189.9 25.6 30.8 0.0 536.2 145.3 

Relative amount 

Segment assets 

41.9% 63.5% 35.4% 17.6% 5.7% 0.0% 

Absolute amount 2,960.8 1,642.0 869.1 255.7 464.6 0.0 6,728.2 2,687.5 

Relative amount 44.0% 61.1% 12.9% 9.5% 6.9% 0.0% 

Revenues 

IMMOEAST recorded revenues of TEUR 192,920.4 in 2006/07. Of this total, 23.8% were generated in Poland, the 

largest regional segment of the Group. Revenues in Poland more than tripled from TEUR 14,692.3 in 2005/06 to 

TEUR 45,845.3 for the reporting year. This growth was supported not only by acquisitions, but also by the excellent 

level of occupancy in the properties owned in this country. Investments in Poland are focused primarily on office, 

logistics and commercial space. The Czech Republic, the second largest regional segment of IMMOEAST, generated 

20.8% of Group revenues in 2006/07. Revenues in this segment rose by 76.9% over the previous financial year, from 

TEUR 22,703.6 to TEUR 40,153.3. Hungary, with a 16.9% share of Group revenues, recorded an increase of 54.9% 

over the previous year to TEUR 32,568.4. In Romania, revenues rose significantly from TEUR 14,115.6 in 2005/06 

to TEUR 22,806.3 for the reporting year. Slovakia contributed 12.3% or TEUR 23,633.9 to Group revenues. During 

2006/07 IMMOEAST was able to expand its property portfolio in a further six countries, including four countries 

in South-eastern Europe (SEE): Croatia with revenues of TEUR 1,589.7, Slovenia with TEUR 1,113.1, Bulgaria with 

TEUR 482.5 and Serbia with TEUR 1.2. The regional segment Russia realised revenues of TEUR 24,726.6, which represents 

a share of 12.8%. 

Notes 












IMMOEAST recorded an improvement in operating profit from TEUR 156,269.4 in the previous year to TEUR 541,288.7 

for 2006/07. The Czech Republic made the highest contribution to EBIT at 29%. This increase was supported above 

all by the positive development of the fair value of properties, which led to revaluation income of TEUR 146,145.4. 

Romania reported EBIT of TEUR 128,009.7 for 2006/07, which represents an increase of 302.5% over the previous 

year as well as 23.7% of total EBIT recorded by IMMOEAST. This development was driven by two main factors: the 

sound increase in the fair value of the properties, which generated revaluation income of TEUR 117,134.2, and strong 

revenue growth in this segment. 

Business activities in Poland also showed very positive development, with EBIT reaching TEUR 81,234.3 in comparison 

to TEUR 56,023.5 in the previous year. The major component of the earnings improvement in this segment was 

also provided by the revaluation of properties. 

The new segment Bulgaria registered EBIT of 78,643.7 in 2006/07, which represents 14.5% of operating profit for the 

Group. The largest contribution to earnings in this segment was generated by the revaluation of properties. 

Slovakia reported sound growth in EBIT. In comparison to the negative EBIT of TEUR 21,420.8 recorded in the previous 

year, the favourable development in the fair value of properties supported an increase in operating profit to 

TEUR 23,816.6. 


Financial results recorded by IMMOEAST rose from TEUR 26,676.3 in 2005/06 to TEUR 104,163.5 for the reporting 

year. This development resulted above all from profit on financial investments. Currency translation adjustments in 

the individual countries made a positive contribution of TEUR 15,411.4 (2005/06: TEUR 1,199.6) to financial results. 

The increasing strength of the HUF and RON led to currency translation gains in Hungary und Romania geführt. With 

a share of 10%, the Slovakia segment made the highest contribution to financial results recorded by IMMOEAST for 

the reporting year. 

Investments 

IMMOEAST invested a total of TEUR 1,480,861.7 during 2006/07, which was allocated as follows: 26.7% in the Czech 

Republic, 23.7% in Russia, 23.4% in Poland, 12.1% in Romania and 7.2% in Hungary. These investments focused 

primarily on office, logistics and commercial properties. 

Cash EBIT margin 

The segment Poland made the highest cash contribution to profit recorded by IMMOEAST in 2006/07. The segment 

Hungary fell slightly behind the average cash EBIT margin of 34%, but increased project investments led to impressive 

growth in this indicator over the previous year. Only Serbia and Bulgaria remained significantly below the Group 

average of 34%, but this situation is related to the higher costs incurred for the development projects that are currently 

underway in these countries. 

Transition from segment to Group data 

The transition column includes the effects resulting from consolidation procedures as well as the amounts relating 

to other non-reportable segments. 

The amounts in the transition column “Group net profit for the period” are related above all to other operating income 

and expenses as well as other financial items from the non-reportable segments, which represent a component of 

segment profit but not of operating profit for the Group. 

Segment assets are comprised chiefly of investment property (IAS 40), property under construction (IAS 16) and 

intangible assets as well as investments carried at equity, inventories and receivables.

Segment liabilities consist of financial liabilities, trade accounts payable, provisions and tax liabilities. 

The transition column for segment assets and liabilities is comprised chiefly of eliminated receivables and liabilities 

for regions that are not allocated to a specific segment. 

Segment investments include additions to property, tangible assets and investments in financial assets carried at 

equity as well as intangible assets (excluding goodwill). 

8. Other information 

8.1 Reporting on financial instruments and risk report 

8.1.1 General information 

IFRS 7.31 requires the disclosure of information that enables the users of financial statements to evaluate the nature 

and extent of risks arising from financial instruments to which the entity is exposed as of the balance sheet date. 

IFRS 7.32 in connection with IFRS 7.34 emphasise that the information to be disclosed should focus exclusively on 

the risks arising from financial instruments as well as the manner in which these risks are managed. 

As an internationally active company, IMMOEAST is exposed to various financial risks. The most important financial 

risks for the Group are associated with possible changes in foreign exchange rates, interest rates, and stock prices as 

well as the creditworthiness and liquidity of customers and business partners. The goal of IMMOEAST is to actively 

control these risks through systematic risk management. 

In accordance with IAS 32 and IAS 39, a distinction is made between primary and derivative financial instruments. 

Primary financial instruments include investments in other companies that are reported under financial assets as 

well as securities and loans granted, trade accounts receivable, available-for-sale securities and deposits with financial 

institutions. Available-for-sale financial assets are carried at fair value; all other financial assets are shown at 

amortised cost. The determination of fair value is based on market prices or calculated in accordance with recognised 

valuation methods. Primary financial instruments recorded under liabilities are comprised primarily of financial 

liabilities and trade accounts payable, which are shown at amortised cost. 

Derivative financial instruments are used to hedge the risk associated with fluctuations in foreign exchange rates 

and interest rates arising from business operations as well as risk associated with monetary investments and financing 

(see point 8.1.3). 

Notes 











8.1.2 Risk report 

8.1.2.1 Default/credit risk 

Credit risk (default risk) is understood to represent the risk that one party to a financial instrument causes the other 

party to incur a financial loss by failing to meet a financial obligation. In accordance with IFRS 7.36, an entity must 

disclose – for each class of financial instrument – information on the maximum exposure to credit risk as of the 

balance sheet date without taking account of any collateral held or other enhancements and also provide a description 

of collateral received and any credit enhancements as well as information on the carrying value of the financial 

assets whose contract terms were amended and which would have been classified as past due or impaired under 

the previous contract terms. In accordance with IFRS 7.B9, the amounts offset in keeping with IAS 32.42 ff. and 

impairment charges as defined in IAS 39 should be deducted from the gross carrying value of financial assets. The 

remaining amount represents the maximum credit risk. Collateral held in security and other credit enhancements are 

not included in this calculation, but only disclosed separately (IFRS 7.36(b)). 

Credit risks arise from the possibility that the counterparty to a transaction fails to meet his/her obligations, and the 

Group incurs financial damages as a result. The maximum credit risk for assets is represented by the amounts shown 

on the balance sheet. The risk of default associated with financial assets is reflected in impairment charges. The risk 

of default for IMMOEAST is low because the credit standing of customers is reviewed on a regular basis, and no single 

tenant is responsible for more than 5% of total outstanding receivables. 

The volume of primary financing instruments held by the Group is shown on the balance sheet, whereby the value of 

financial assets represents the maximum risk of default. The risk of default associated with other primary financing 

instruments and derivative financial instruments is also low because all financing transactions are concluded with 

financial institutions that have excellent credit ratings. 

The most important instrument for the management and control of default risk is the diversity of the property portfolio 

and the selection of a suitable tenant structure for each property. The risk of default on receivables due from 

tenants is low because tenants are generally required to provide collateral (for residential properties: cash deposits, 

for commercial properties: bank guarantees or cash deposits) and the credit standing of tenants is monitored on a 

regular basis. 

8.1.2.2Marketrisk 

Market risk is the risk that the fair value or future cash flows of a financial instrument may fluctuate due to a change 

in market prices. There are three types of market risk: foreign exchange risk, interest rate risk and other price risks. 

8.1.2.2.1 Foreign exchange risk 

Foreign exchange risks can affect IMMOEAST AG in two forms: fluctuation in foreign exchange rates can influence the 

results of valuations, and also have an impact on the asset position of the company. 

8.1.2.2.1.1 Impact on valuation 

The results from companies located outside the Euro zone, which are included using full or proportionate consolidation, 

are translated based on the functional currency of the local company in accordance with the modified current 

rate method. The expert opinions on properties are prepared in Euros and fluctuations in exchange rates will influence 

the results from the revaluation of properties. 

An increase in foreign exchange rates compared to the Euro will lead to higher Euro amounts in the fair values of 

investment properties than the amounts reflected in the expert opinions from the prior year. When the latest value is 

compared with the unchanged amount from a prior year expert opinion in Euro, the translation of the prior year Euro 

amount back into the functional currency (local currency) leads to a lower value – because of the higher exchange 

rate – and therefore to a write-down. If the value in the expert opinion rises, this foreign exchange effect reduces the

upward potential for the valuation of the property; if the value in the expert opinion is lower, this effect increases 

the write-down. 

A decline in foreign exchange rates compared to the Euro lead to lower Euro amounts in the fair values than the 

amounts shown in prior years when the fair values of properties are translated. When the latest value is compared 

with the unchanged amount from a prior year expert opinion in Euro, the translation of the prior year Euro amount 

back into the functional currency (local currency) leads to a higher value – because of the lower exchange rate – and 

therefore to a write-up. If the value in the expert opinion rises, this foreign exchange effect increases the upward for 

the valuation of the property; if the value in the expert opinion is lower, this effect reduces the write-down. 

As of 30 April 2007, the net revaluation income recognised by IMMOEAST totalled TEUR 493,095.1. This figure comprises 

revaluation income of TEUR 567,003.6 and impairment charges of TEUR 73,908.5. Part of the impairment 

charges resulted exclusively from an increase in the value of the local currency compared with the Euro. This effect 

involved properties in Hungary, Poland, Slovakia and Romania. 

The following Group exchange rates were used for foreign currency translation as of 30 April 2007: 

HUF PLN CZK ROL 

Closing rate on 30 April 2007 247.180000 3.781000 28.123000 33293.000000 

Average rate 255.630000 3.827850 28.271500 34021.500000 

RON CYP SKK EEK 


Average rate 3.402150 0.579300 35.561000 15.646600 

BGN USD CHF RUB 


Average rate 1.955800 1.307100 1.608550 34.570000 

HRK UAH BAM 

Closing rate on 30 April 2007 7.36150 6.81810 1.95910 

Average rate 7.361500 6.688975 1.951550 










CSD SEK 

Closing rate on 30 April 2007 81.30900 9.15230 

Average rate 83.460000 9.177000 

A theoretical increase of 2.5% in exchange rates in Hungary, Poland, Slovakia and Romania against the Euro as of the 

balance sheet date would have resulted in a negative impact of TEUR 49,632.4 on revaluation results. 

A theoretical increase of 2.0% in the exchange rates of all countries against the Euro as of the balance sheet date 

would have resulted in a net positive impact of TEUR 424,705.2 on revaluation results. This would reflect a revaluation 

of TEUR 603,494.3 and impairment charges of TEUR 178,789.1. 

A theoretical decrease of 2.0% in the exchange rates of all countries against the Euro as of the balance sheet date 

would have resulted in a net positive impact of TEUR 561,485.0 on revaluation results. This would reflect a revaluation 

of TEUR 714,741.3 and impairment charges of TEUR 153,256.3. 

Notes


8.1.2.2.1.2 Impact on the asset position 

IAS 21 calls for the translation of monetary assets and liabilities at the average exchange rate in effect on the balance 

sheet date as well as the recognition of any gains or losses to the income statement. For this reason, fluctuations in 

exchange rates can have a direct impact on the asset position of the group. 

The risk of devaluation associated with cash balances in foreign currencies is offset by the rapid conversion of these 

funds into euros or through investments in these currencies. In addition, the low USD cash balances are used for 

investments in USD to which the group is committed. 

Another management instrument to minimise foreign exchange risk is the restrictive use of foreign currency credits 

in Europe. In this region, the risk arising from adverse foreign exchange effects is outweighed by the advantages of 

low interest rates. 

In order to limit the foreign exchange risk associated with rental income, contractual agreements with tenants in 

countries where the functional currency is not the Euro generally call for the payment of rents in Euro or link the rental 

payments to the Euro exchange rate on particular dates. 

Derivative financial instruments are also used to manage foreign exchange risk. The derivative financial instruments 

used by IMMOEAST to hedge foreign exchange risk are recorded as independent transactions and not as hedge 

transactions. Hedge accounting as defined in IAS 39.85 – IAS 39.102 is not applied because the requirements stated 

in these regulations are not met. 

Derivative financial instruments are stated at market value. Derivatives with a positive market value are included 

under the balance sheet position “other financial instruments”, while derivatives with a negative market value are 

shown under “other liabilities“. 

Any changes in this market value are recognised as income or expenses under financial results. 

The following table shows the market values and conditions of all derivative financial instruments that were purchased 

to hedge foreign exchange risk. 

Reference Market 

Fixed interest Reference value as of value as of 

rate/ex- interest 30.4.2007 30.4.2007 

Company Derivative Currency Beginning End Financial institution change rate rate Hedge Currency in 1,000 in 1,000 

MBP I Sp. z o.o. FX FORWARD USD/EUR 4.12.2006 29.6.2007 Aareal Bank AG 1.3344 n.a. Foreign currency (USD) USD 2,536.3 46.3 

MBP I Sp. z o.o. FX FORWARD USD/EUR 4.12.2006 28.9.2007 Aareal Bank AG 1.3383 n.a. Foreign currency (USD) USD 2,407.7 43.3 


MBP I Sp. z o.o. FX FORWARD USD/EUR 4.12.2006 31.3.2008 Aareal Bank AG 1.3448 n.a. Foreign currency (USD) USD 2,185.1 37.0 


MBP I Sp. z o.o. FX FORWARD USD/EUR 4.12.2006 30.9.2008 Aareal Bank AG 1.3507 n.a. Foreign currency (USD) USD 1,975.8 29.8 




MBP I Sp. z o.o. FX FORWARD USD/EUR 4.12.2006 30.9.2009 Aareal Bank AG 1.3633 n.a. Foreign currency (USD) USD 939.3 10.7 






The reference value forms the basis value for derivatives outstanding as of the balance sheet date.

The market value represents the amount that the relevant company would receive or be required to pay if the transaction 

were terminated as of the balance sheet date. The market values do not reflect the proportionate consolidation 

of the company in the consolidated financial statements. 

8.1.2.2.2 Interest rate risk 

As an international company, IMMOEAST is exposed to the risk of interest rate fluctuations on various property submarkets. 

Changes in interest rates can influence the earnings recorded by the Group through higher interest costs for 

existing variable rate financing, and can also have a reflex effect on the valuation of properties. 

Changes in interest rates have a direct influence on the financial results recorded by the Group in that they increase 

the cost of variable rate financing. IMMOEAST manages the risk associated with rising interest rates, which would 

lead to an increase in interest expense and a decline in financial results, through the use of derivative financial 

instruments. The derivative financial instruments used by IMMOEAST to hedge interest rate risk are recorded as 

independent transactions and not as hedge transactions. Hedge accounting as defined in IAS 39.85 – IAS 39.102 is 

not applied because the requirements stated in these regulations are not met. 




Any changes in this market value are recognised as income or expenses under financial results. In addition, the Group 

has concluded financing contracts that carry fixed interest rates. 


to hedge interest rate risk. 

The reference value forms the basis value for derivatives outstanding as of the balance sheet date. 

















Atom Centrum a.s. 

Centrum Olympia 

CAP EUR 31.3.2006 31.3.2011 HVB Bank Czech Republic a.s. 4.00% 3M-EURIBOR Interest rate EUR 14,418.8 184.1 

Olomouc a.s. CAP EUR 31.8.2005 30.9.2010 HVB Bank Czech Republic a.s. 3.00% 3M-EURIBOR Interest rate EUR 36,115.2 1,390.3 

PERL INVEST a.s. CAP EUR 31.1.2006 27.9.2007 Bank Austria Creditanstalt AG 3.50% 3M-EURIBOR Interest rate EUR 4,920.1 6.3 

Prokopova Development a.s. CAP EUR 31.1.2006 27.9.2007 Bank Austria Creditanstalt AG 3.50% 3M-EURIBOR Interest rate EUR 787.2 1.0 

E.N.G. Property a.s. CAP EUR 31.1.2006 27.9.2007 Bank Austria Creditanstalt AG 3.50% 3M-EURIBOR Interest rate EUR 4,100.1 5.2 

JUNGMANNOVA ESTATES a.s. CAP EUR 31.1.2006 27.9.2007 Bank Austria Creditanstalt AG 3.50% 3M-EURIBOR Interest rate EUR 10,660.2 13.6 

NP Investments a.s. CAP EUR 31.1.2006 27.9.2007 Bank Austria Creditanstalt AG 3.50% 3M-EURIBOR Interest rate EUR 25,355.0 32.4 

J.H.Prague a.s. CAP EUR 31.1.2006 27.9.2007 Bank Austria Creditanstalt AG 3.50% 3M-EURIBOR Interest rate EUR 9,512.2 12.2 

PAN Development a.s. CAP EUR 31.1.2006 27.9.2007 Bank Austria Creditanstalt AG 3.50% 3M-EURIBOR Interest rate EUR 2,904.1 6.7 

IRIDE S.A. CAP EUR 7.8.2006 28.7.2011 Raiffeisen Zentralbank Österreich AG 5.00% 3M-EURIBOR Interest rate EUR 46,069.9 72.0 

Globe 13 Kft. CAP EUR 31.10.2006 31.10.2011 Bank Austria Creditanstalt AG 5.00% 3M-EURIBOR Interest rate EUR 17,450.0 -75.6 

Lentia Real (1) Kft. CAP EUR 31.10.2006 31.10.2011 Bank Austria Creditanstalt AG 5.00% 3M-EURIBOR Interest rate EUR 9,018.0 -40.4 

Szepvölgyi Businesspark Kft. CAP EUR 31.10.2006 31.10.2011 Bank Austria Creditanstalt AG 5.00% 3M-EURIBOR Interest rate EUR 9,700.0 -43.1 

Arpad Center Kft. CAP EUR 31.10.2006 31.10.2011 Bank Austria Creditanstalt AG 5.00% 3M-EURIBOR Interest rate EUR 5,420.0 -23.4 

MBP I Sp. z o.o. SWAP EUR 30.11.2006 30.12.2010 Aareal Bank AG 3.83% 3M-EURIBOR Interest rate EUR 141,661.7 1,833.5 

Notes


IAS 24.12 

Changes in interest rates have an influence on the valuation of property. As part of the discounted cash flow method 

(DCF) that is used to value office and commercial properties, the present value of future cash flows from a property 

is determined by discounting these amounts based on the applicable interest rate. This interest rate is generally comprised 

of a risk-free basic interest rate and a risk premium that reflects the property category and sub-market. Rising 

interest rates lead to an increase in the risk-free basic interest rate, and thereby result in a higher discount factor. This 

reduces the present value of cash flows and, in turn, reduces the fair value of the property. 

The risk associated with changes in interest rates is determined by sensitivity analyses. A sensitivity analysis presents 

the effects of changes in market interest rates on interest payments, interest income and expense, other components of 

earnings and, possibly, also on equity. The following sensitivity analysis shows the influence of variable market interest 

rates on the interest expense associated with financial liabilities. This analysis presents the impact of an assumed average 

increase/decrease of 30, 75 and 135 basis points in interest rates on interest expense recognised during 2006/07: 

Interest expense Interest rate scenarios 

All amounts in TEUR 2006/2007 +/- 0.30% +/- 0.75% +/- 1.35% 

Increase in variable interest rate -45,017.8 -45,150.9 -45,350.6 -45,616.9 

Decrease in variable interest rate -45,017.8 -44,884.7 -44,685.0 -44,418.8 

8.1.2.2.3 Other price risks 

As an international company, IMMOEAST is also exposed to price risks. Price risks are understood to mean the 

possible fluctuation in fair value or future cash flows as a result of changes in market prices. 

IMMOEAST would be exposed to price risk if the development of the property market in a region leads to increasing 

yields and property acquisitions were concluded at fixed yields that are below these market figures. 

8.2 Earnings per share 

In accordance with IAS 33, earnings per share are calculated 

by dividing net profit for the period by the weighted 

average number of issued shares. 

Diluted earnings per share are not reported separately 

because the company has no potential diluting shares of 

common stock. 

8.3 Information on the company 

The members of the Executive Board and Supervisory Board of IMMOEAST AG are as follows: 

Executive Board 

Karl Petrikovics – Chairman 

Norbert Gertner – Member 

Christian Thornton – Member (since 1 May 2007) 

Edgar Rosenmayr – Deputy member (since 1 May 2007) 


Helmut Schwager – Chairman 

Wolfgang Reithofer – Vice-Chairman 

Christian Böhm 

Herbert Kofler 

Erhard Schaschl – up to 27 February 2007 


Total number of shares 

Weighted average number 

555,882,750 222,353,100 

of shares 515,676,436 191,040,910 

Net profit for the period in EUR 528,172,708 145,308,333 

Earnings per share in EUR 1.02 0.76

8.4 Transactions with related parties 

IMMOEAST is a subsidiary of IMMOFINANZ AG, which holds 50.46% of the shares and voting rights. 

Constantia Privatbank Aktiengesellschaft (CPB) as well as its corporate bodies and subsidiaries are considered related 

parties in the sense of IAS 24. The following subsidiaries of CPB are classified as related parties in accordance 

with the provisions of IAS 24: CPB Immobilientreuhand GmbH, IMV Immobilien Management und Verwaltung GmbH, 

Immoeast Corporate Finance Consulting GmbH, CPB Corporate Finance Consulting GmbH and its subsidiaries. 

8.4.1 Constantia Privatbank Aktiengesellschaft 

8.4.1.1 Management contracts 

Constantia Privatbank Aktiengesellschaft and IMMOEAST have concluded a management contract. 

This management contract obliges Constantia Privatbank to provide the following services to IMMOEAST and its 

subsidiaries: 

• Provision of corporate bodies and proxies, 

• Support for corporate bodies in connection with the annual general meetings, 

• Controlling, financial and accounting services (including the preparation of quarterly and annual reports, financial 

planning, treasury and group financing), 

• Selection of properties (feasibility studies, acquisition and sale negotiations), 

• Asset management (representation of owner interests, management of maintenance, contact office for brokers 

etc.) and 

• Provision of infrastructure. 

The management contracts do not cover following services: 

• Broker services, 

• Property management, 

• Consulting that can only be provided by specific professional groups, 

• Market-making, 

• Consulting in connection with capital increases and 

• Banking services. 

Payment for the calendar year was set at 1% of new investments and commissioned projects plus 0.60% of properties 

owned by IMMOEAST at the beginning of the year. This second component is linked to the consumer price 

index. The same principles apply to financial instruments held by IMMOEAST that are classified as investments in 

other companies, whereby there is no 1% fee and the paid commitment forms the basis for calculation. In 2006/07 

Constantia Privatbank Aktiengesellschaft charged administrative fees of TEUR 47,163.6 (2005/06: TEUR 15,544.2) 

to IMMOEAST. 

Furthermore, the Constantia Privatbank Group and IMMOFINANZ AG carry out investment and service transactions 

at arm’s length. 

8.4.1.2 Other services 

Constantia Privatbank Aktiengesellschaft also provides other banking services for IMMOEAST. The most important 

services are related to the securities issued by company. The fees for these services totalled TEUR 53,931.7 

in 2006/07 (2005/06: TEUR 27,366.9) for the part of the IMMOEAST capital increase that was not subscribed by 

IMMOFINANZ AG. 

Notes 










IAS 1.126c


Constantia Privatbank serves as the primary commercial bank for the majority of the Austrian subsidiaries and a number 

of the foreign subsidiaries. Normal market rates and interest rates are charged for these account management 

services. The interest rate on credit balances was 3.61% as of 28 April 2007 (28 April 2006: 2.37%) and the interest 

rate on debit balances was 4.36% as of this date (28 April 2006: 3.17%). 

8.4.2 Immofinanz Corporate Finance Consulting GmbH 

Immofinanz Corporate Finance Consulting GmbH serves as a trust company for group financing. The contract partners 

are IMMOEAST as well as the majority of companies included under full or proportionate consolidation. For these services, 

Immofinanz Corporate Finance Consulting GmbH receives fees totalling TEUR 10 per calendar year (2005/06: 

TEUR 10). 

8.4.3 Immoeast Corporate Finance Consulting GmbH 

Immoeast Corporate Finance Consulting GmbH provides the majority of management resources for IMMOEAST in 

accordance with the management contract concluded with Constantia Privatbank AG. In addition, Immoeast Corporate 

Finance Consulting GmbH provided brokerage services for TEUR 0 in 2006/07 (2005/06: TEUR 2,321.1). 

Furthermore, cash outlays by Immoeast Corporate Finance Consulting GmbH of TEUR 0 were reimbursed in 2006/07 

(2005/06: TEUR 7.1). 

8.4.4 CPB Corporate Finance Consulting GmbH 

CPB Corporate Finance Consulting GmbH provided brokerage services in connection with the acquisition of companies 

for fees totalling TEUR 6,825.0 (2005/06: TEUR 4,696.4). 

8.4.5 IMV Immobilien Management und Verwaltung GmbH 

IMV Immobilien Management und Verwaltung GmbH is the largest property management company in Austria and 

– together with its subsidiaries in Hungary, the Czech Republic, Poland, Slovakia and Romania – provides property 

management services for the majority of IMMOEAST objects. These companies handle the invoices for subsidiary 

operating costs and receive no additional fees from IMMOEAST. 

8.4.6 CPB Immobilientreuhand GmbH 

CPB Immobilientreuhand GmbH and its subsidiaries in Hungary, the Czech Republic and Poland provide broker services 

at arm’s length for the rental of properties. The charges to IMMOEAST for broker services in 2006/07 comprise 

TEUR 41.1 from CPB Praha, TEUR 22.4 from CPB Polska and TEUR 609.3 from CPB Hungaria (2005/06: TEUR 1,221.8). 

8.4.7 CPB Management Czech Republic s.r.o. 

CPB Management Czech Republic s.r.o. has rented 261.19 sqm of office space from VALDEK Praha s.r.o. for TEUR 43.9 

per year.

8.4.8 Remuneration of corporate bodies 

The members of the Executive Board receive no separate 

remuneration from the company. The remuneration for 

the members of the Supervisory Board is as follows: 

The members of the Executive Board and Supervisory 

Board hold 244,143 shares of stock. There are no options 

outstanding on IMMOEAST shares. 

8.4.8 Trust loan 

The internal financing for the IMMOEAST subsidiaries is handled in part by IMMOFINANZ Corporate Finance Consulting 

GmbH at arm’s length interest rate conditions. In addition, the IMMOFINANZ Group provided financing of 

TEUR 993,142.2 at arm’s length conditions. 

8.4.9 Constantia Immobilien Development GmbH 

IMMOEAST granted a loan of TEUR 10,000.0 to Constantia Immobilien Development GmbH during the reporting year. 

The interest rate equals 8% and the term is unlimited. The outstanding amount as of the balance sheet date, including 

interest, was TEUR 6,898.7. 

8.5 Subsequent events 


Helmut Schwager 30.0 30.0 

Wolfgang Reithofer 22.5 22.5 

Erhard Schaschl 15.0 15.0 

Christian Böhm 15.0 15.0 

Herbert Kofler 15.0 15.0 

Total 97.5 97.5 

8.5.1 Capital transactions 

IMMOEAST carried out another largest capital increase in May 2007, which involved the issue of 277,941,375 shares 

of bearer stock at a price of EUR 10.20 per share. IMMOFINANZ AG subscribed to 50.46% of this issue and thereby 

retained its holding as of 30 April 2007. 

8.5.2 Acquisitions 

Romania 

After the balance sheet date IMMOEAST acquired a 75% stake in Harborside Hotel s.r.l. This project involves the 

development and construction of an annex to the Harborside Constanta Phase 1, with a further 15,600 sqm of retail 

space and a hotel tower with 12,100 sqm of space. IMMOEAST will initially hold 75% of the shares, and the remaining 

25% will be owned by the project developer and site owners. Plans call for IMMOEAST to acquire this minority stake 

after the project is completed. 

Development also started on the Baia Mare Mall in the north-western region of Romania after 30 April 2007. This 

project represents a shopping and entertainment centre with approx. 43.000 sqm of space on two levels. The start 

of construction is scheduled for the fourth quarter of 2007 and completion is expected during the fourth quarter of 

2008. This development project will be realised through a cooperation between IMMOEAST and a large Hungarian 

property company at a total investment volume of EUR 97 million. 

IMMOEAST acquired 100% of the shares in S.C. Flash Consult Invest s.r.l. after the end of the 2006/07 financial year. 

This company is the owner of the Euromall Shopping Center in Pitesti, Romania, which has roughly 32,000 sqm of 

letable space. This facility was completed and opened in May 2007. 

Notes 











A further investment on the Romanian market was the acquisition of the shares in S.C. Dacian Second s.r.l. This project 

involves the development of the Pantelimon Warehouse logistics centre with more than 50,000 sqm of letable 

space in the Romanian capital, and is under realisation together with the European Future Group. 

IMMOEAST also acquired a 75% stake in S.C. Red Project Two s.r.l. shortly after the balance sheet date. This company 

is developing a specialty shopping centre and shopping gallery with approx. 43,000 sqm of letable space and a corresponding 

parking facilities. The building permit should be granted at the end of 2007 and construction is scheduled 

to start in spring 2008, with completion following roughly 18 months later. 

Through the acquisition of the Cypriote Gendana Ventures Ltd. in June 2007, IMMOEAST took over 100% of the shares 

in the Romanian Real Habitation s.r.l. This company owns a site adjoining the location for the IRIDE Business Park, 

which will be used for a 63,000 sqm expansion to this complex. 

In addition, IMMOEAST concluded a cooperation agreement with Eyemaxx for the development of a retail portfolio in 

Romania. This portfolio will comprise specialty shopping centres and shopping malls in mid-sized Romanian cities. 


On 3 May 2007 IMMOEAST acquired a 5% stake in UTILITY PARK WEST s.r.o. This project will develop the Utility and 

Office Park West in Prague in four stages. The total investment is estimated at EUR 39 million, and IMMOEAST will 

provide mezzanine capital. 

Slovakia 

IMMOEAST acquired 10% of the shares in BIG BOX LEVICE s.r.o. and BIG BOX LIPTOVSKÝ MIKULÁŠ s.r.o. after the 

balance sheet date. Plans are in preparation for the construction of specialty shopping centres with approx. 5,500 

sqm of letable space as part of the Big Box Phase 2. IMMOEAST will purchase the remaining 90% of shares in these 

companies after the projects are completed and profitable rental contracts have been signed for at least 80% of the 

space. 

The Trencín and Nové Zámky locations opened in 2006. The other specialty shopping centres are planned to open in 

autumn 2007 and during 2008.

Group companies of IMMOEAST AG 

Nominal Initial 

Company Country Headquarters capital consolidation 

IMMOEAST AG A Vienna 555,882,750 

Mester Park Kft. H Budapest 626,000,000 HUF 75.00% 31.12.2000 1.11.2006 V 

IMMOEAST Beteiligungs GmbH A Vienna 35,000 EUR 100.00% 22.8.2001 V 

European Property Group Ltd. BVI Tortula 133,902,000 CHF 25.00% 31.12.2001 E 

Arpad Center Kft. H Budapest 31,000,000 HUF 100.00% 1.8.2002 V 

Globe 13 Kft. H Budapest 50,000,000 HUF 100.00% 1.8.2002 V 

Mester Park Ost Bt. H Budapest 1,403,000,000 HUF 75.00% 31.12.2002 1.11.2006 V 

S+B CEE Beteiligungsverwaltungs GmbH A Vienna 35,000 EUR 50.00% 1.1.2003 Q 

SBF Development Praha spol.s.r.o. CZ Prague 30,600,000 CZK 100.00% 1.1.2003 31.10.2005 V 

ODP Office Development Praha spol.s.r.o. CZ Prague 10,700,000 CZK 100.00% 1.1.2003 21.7.2005 V 

WEGE spol.s.r.o. CZ Prague 100,000 CZK 100.00% 1.1.2003 21.7.2005 V 

S B Praha 4 spol.s.r.o. CZ Prague 26,532,000 CZK 100.00% 1.1.2003 21.7.2005 V 

RHP Development spol.s.r.o. CZ Prague 200,000 CZK 50.00% 8.1.2003 Q 

VALDEK Praha spol.s.r.o. CZ Prague 100,000 CZK 100.00% 16.10.2003 21.7.2005 

and 1.11.2005 V 

IMMOFINANZ Hungária Harmadik Kft. H Budapest 3,000,000 HUF 100.00% 20.2.2004 V 

Lentia Real (1) Kft. H Budapest 227,000,000 HUF 100.00% 24.2.2004 V 

Immofinanz Polska Sp. z o.o. PL Warsaw 50,000 PLN 100.00% 31.3.2004 V 

ATLAS 2001 CR s.r.o. CZ Prague 200,000 CZK 100.00% 20.4.2004 V 

I-E Immoeast Real Estate GmbH A Vienna 35,000 EUR 100.00% 30.4.2004 V 

IRIDE S.A. RO Bucharest 16,683,215 RON 100.00% 13.5.2004 V 

KIP Development spol.s.r.o. CZ Prague 200,000 CZK 50.00% 20.5.2004 Q 

West Gate Üzleti Park Fejlesztö Kft. H Budapest 3,180,000 HUF 100.00% 2.7.2004 V 

Globe 3 Ingatlanfejlesztö Kft. H Budapest 561,000,000 HUF 100.00% 13.7.2004 V 

S+B CEE ACP Cyprus Ltd. CY Nicosia 1,000 CYP 50.00% 1.8.2004 Q 

Szepvölgyi Business Park Kft. H Budapest 601,000,000 HUF 100.00% 5.8.2004 V 

Gordon Invest Kft. H Budapest 583,000,000 HUF 100.00% 6.8.2004 V 

AC Parc Invest s.r.l. RO Bucharest 4,000,000 RON 50.00% 16.8.2004 Q 

I-E-H Immoeast Holding GmbH A Vienna 35,000 EUR 100.00% 18.9.2004 V 

IMMOEAST Silesia Holding Ltd. CY Nicosia 1,000 CYP 100.00% 29.10.2004 V 

Zitna Building s.r.o. CZ Prague 7,000,000 CZK 100.00% 24.11.2004 V 

ABLO Property s.r.o. CZ Prague 100,000 CZK 100.00% 3.12.2004 1.6.2005 V 

ARE 4 Sp. z o.o. PL Warsaw 50,000 PLN 100.00% 7.12.2004 4.5.2006 V 

Central Bud Sp. z o. o. PL Warsaw 50,000 PLN 100.00% 9.12.2004 4.5.2006 V 

IO-1 Building Sp. z o.o. PL Warsaw 50,000 PLN 100.00% 9.12.2004 V 

Global Trust s.r.l. RO Bucharest 2,030 RON 100.00% 1.1.2005 V 

Atom Centrum a.s. CZ Prague 1,000,000 CZK 100.00% 20.1.2005 27.6.2006 V 

ImmoPoland Sp. z o.o. PL Warsaw 50,000 PLN 100.00% 20.1.2005 V 

Immoeast Real Estate Holding Ltd. CY Nicosia 1,000 CYP 100.00% 31.1.2005 V 


ImmoPoland Residential I Sp. z o.o. PL Warsaw 50,000 PLN 47.50% 3.2.2005 Q 

I-E-H Holding GmbH A Vienna 35,000 EUR 100.00% 15.2.2005 V 

IMAK CEE B.V. NL Amsterdam 45,000 EUR 100.00% 18.2.2005 4.5.2006 V 

ProEast Holding GmbH A Vienna 35,000 EUR 100.00% 16.4.2005 V 

IMMOEAST Acquisition & Management GmbH A Vienna 35,000 EUR 100.00% 21.4.2005 V 

UKS GmbH A Vienna 35,000 EUR 100.00% 30.4.2005 4.5.2006 V 

SAS Inter Kft. H Budapest 258,690,000 HUF 100.00% 30.4.2005 4.5.2006 V 

Currency 

Group companies 

Stake 










Transition consolidation 

increase in investment or 

structural change 

Type of consolidation







UKS Finance Kft. H Budapest 3,000,000 HUF 100.00% 30.4.2005 4.5.2006 V 

IMAK Finance B.V. NL Amsterdam 18,000 EUR 100.00% 30.4.2005 4.5.2006 V 





Flex Invest Sp. z o.o. PL Warsaw 51,000 PLN 100.00% 30.4.2005 4.5.2006 V 

Secure Bud Sp. z o.o. PL Warsaw 50,000 PLN 100.00% 30.4.2005 4.5.2006 V 

Al Sp. z o.o. PL Warsaw 50,000 PLN 100.00% 30.4.2005 4.5.2006 V 

Atlantis Invest Sp. z o.o. PL Warsaw 51,000 PLN 100.00% 30.4.2005 4.5.2006 V 

Ol Sp. z o.o. PL Warsaw 50,000 PLN 100.00% 30.4.2005 4.5.2006 V 

Omega Invest Sp. z o.o. PL Warsaw 50,000 PLN 100.00% 30.4.2005 4.5.2006 V 

Centrum Olympia Olomuc a.s. CZ Prague 103,000,000 CZK 45.00% 10.5.2005 Q 

Harborside Imobiliara s.r.l. RO Bucharest 1,000 RON 75.00% 11.5.2005 V 

OÜ Robbins EST Tallinn 2,556 EEK 45.00% 27.5.2005 Q 

Stop.Shop Holding GmbH A Vienna 35,000 EUR 100.00% 31.5.2005 V 

IMMOEAST Projekt Alpha Holding GmbH A Vienna 35,000 EUR 100.00% 31.5.2005 V 

Center Invest Kft. H Budapest 3,000,000 HUF 100.00% 2.6.2005 V 

IMMOEAST Projekt Beta Holding GmbH A Vienna 35,000 EUR 100.00% 4.6.2005 V 



IMMOEAST ALLEGRO Beteiligungs GmbH A Vienna 35,000 EUR 100.00% 28.6.2005 V 

Airport Property Development a.s. CZ Prague 1,000,000 CZK 100.00% 29.6.2005 V 

IMMOEAST Projekt Gamma Holding GmbH A Vienna 35,000 EUR 100.00% 2.7.2005 V 

IMMOEAST Projekt Delta Holding GmbH A Vienna 35,000 EUR 100.00% 8.7.2005 V 

IMMOEAST Projekt Epsilon Holding GmbH A Vienna 35,000 EUR 100.00% 8.7.2005 V 

Netlu spol.s.r.o. CZ Prague 200,000 CZK 50.00% 13.7.2005 Q 

IA Holding 1 Kft. H Budapest 2,183,000,000 HUF 100.00% 13.7.2005 4.5.2006 V 

IMMOEAST Slovakia s.r.o. SK Bratislava 200,000 SKK 100.00% 21.7.2005 V 

Cora GS s.r.l. RO Bucharest 300 RON 100.00% 25.7.2005 V 

NF 23 spol.s.r.o. CZ Prague 200,000 CZK 50.00% 10.8.2005 Q 

C.E.P.D. Kft. H Budapest 3,000,000 HUF 100.00% 31.8.2005 4.5.2006 V 

Optima A Kft. H Budapest 3,000,000 HUF 100.00% 1.9.2005 V 

Akvamarin Beta s.r.o. CZ Prague 200,000 CZK 100.00% 30.9.2005 V 

Pipera Office Project Ltd. CY Nicosia 1,000 CYP 50.00% 21.10.2005 Q 

PBT Invest s.r.l. RO Bucharest 400 RON 50.00% 21.10.2005 Q 

DH Logistik Kft. H Budapest 3,000,000 HUF 100.00% 1.11.2005 V 

Multi-ImmoEast Asset Management GmbH D Munich 25,000 EUR 45.00% 3.11.2005 Q 

A-I Investments Management Europe GmbH D Munich 25,000 EUR 50.00% 3.11.2005 Q 

Shark Park Holding Kft. H Budapest 2,320,000,000 HUF 100.00% 8.11.2005 4.5.2006 V 

Euro Businesspark Kft. H Budapest 372,970,000 HUF 100.00% 14.11.2005 4.5.2006 V 

IMMOEAST Projekt Lambda Holding GmbH A Vienna 35,000 EUR 100.00% 16.11.2005 V 

PERL INVEST a.s. CZ Prague 2,000,000 CZK 50.00% 9.12.2005 Q 

NP Investment a.s. CZ Prague 2,000,000 CZK 50.00% 9.12.2005 Q 

Prokopova Development a.s. CZ Prague 2,000,000 CZK 50.00% 9.12.2005 Q 

E.N.G. Property a.s. CZ Prague 2,000,000 CZK 50.00% 9.12.2005 Q 

JUNGMANNOVA ESTATES a.s. CZ Prague 2,000,000 CZK 50.00% 9.12.2005 Q 

Stetkova Property Invest a.s. CZ Prague 2,000,000 CZK 50.00% 9.12.2005 Q 

Currency 

Stake 




J.H. Prague a.s. CZ Prague 2,000,000 CZK 50.00% 9.12.2005 Q 

PAN Development a.s. CZ Prague 2,000,000 CZK 50.00% 9.12.2005 Q 

IMMOEAST Projekt Kappa Holding GmbH A Vienna 35,000 EUR 100.00% 20.12.2005 V 

IMMOEAST Projekt Jota Holding GmbH A Vienna 35,000 EUR 100.00% 20.12.2005 V 

IMMOEAST HRE Investment jeden Sp. z o.o. PL Warsaw 50,000 PLN 100.00% 28.12.2005 V 

IMMOEAST HRE Investment dwa Sp. z o.o. PL Warsaw 50,000 PLN 100.00% 28.12.2005 V 

IMMOEAST HRE Investment trzy Sp. z o.o. PL Warsaw 50,000 PLN 100.00% 28.12.2005 V 

IMMOEAST HRE Investment cztery Sp. z o.o. PL Warsaw 50,000 PLN 100.00% 28.12.2005 V 

IMMOEAST HRE Investment piec Sp. z o.o. PL Warsaw 50,000 PLN 100.00% 28.12.2005 V 

IMMOEAST Projekt Investment jeden Sp.z o.o. PL Warsaw 50,000 PLN 100.00% 28.12.2005 V 

Nowe Centrum Sp. z o.o. PL Katowice 63,636,000 PLN 100.00% 31.12.2005 V 

ELCO Sp. z o.o. PL Katowice 50,000 PLN 100.00% 31.12.2005 V 

Polus Tower 2 a.s. SK Bratislava 75,213,900 SKK 100.00% 31.12.2005 V 

Polus Tower 3 a.s. SK Bratislava 13,100,000 SKK 100.00% 31.12.2005 V 

Polus a.s. SK Bratislava 222,767,000 SKK 100.00% 31.12.2005 V 

BA Energetika s.r.o. SK Bratislava 200,000 SKK 100.00% 31.12.2005 V 

IMMOEAST Projekt Sita Holding GmbH A Vienna 35,000 EUR 100.00% 4.1.2006 V 

Stavební a inzenýrská spol.s.r.o. CZ Prague 270,000 CZK 50.00% 4.1.2006 Q 

IMMOEAST Projekt Omega Holding GmbH 

Multi-ImmoEast Central European 

A Vienna 35,000 EUR 100.00% 5.1.2006 V 

Property Fund C.V. LU Luxembourg EUR 45.00% 24.1.2006 Q 

IMMOEAST Projekt Aries Holding GmbH A Vienna 35,000 EUR 100.00% 31.1.2006 V 

Blizzard Real Sp. z o.o. PL Warsaw 50,000 PLN 100.00% 31.1.2006 V 

Capri Trade s.r.l. RO Bucharest 200 RON 100.00% 10.2.2006 V 

IMMOEAST Projekt Capricornus Holding GmbH A Vienna 35,000 EUR 100.00% 17.2.2006 V 

IMMOEAST Projekt Caelum Holding GmbH A Vienna 35,000 EUR 80.00% 17.2.2006 V 

IMMOEAST Projekt Cassiopeia Holding GmbH A Vienna 35,000 EUR 100.00% 9.3.2006 V 

IMMOEAST Projekt Cepheus Holding GmbH A Vienna 35,000 EUR 100.00% 9.3.2006 V 

IMMOEAST Projekt Circinus Holding GmbH A Vienna 35,000 EUR 100.00% 9.3.2006 V 

S+B CEE ALPHA CYPRUS Ltd. CY Nicosia 10,000 CYP 50.00% 10.3.2006 Q 

MY BOX Uherske Hradiste s.r.o. CZ Prague 200,000 CZK 50.50% 10.3.2006 Q 

Bucharest Corporate Center s.r.l. RO Bucharest 8,068,929 RON 100.00% 22.3.2006 V 

Multi-IMMOEAST Master Luxembourg Otarfi s.r.l. LU Luxembourg EUR 45.00% 24.3.2006 Q 

Holtera Property a.s. CZ Prague 2,000,000 CZK 45.00% 30.3.2006 Q 

VALUEROI GRUP s.r.l. RO Bucharest 37,000 RON 75.00% 30.3.2006 V 

IMMOEAST Presto Beteiligungs GmbH A Vienna 35,000 EUR 100.00% 31.3.2006 V 

Prague Office Park I s.r.o. CZ Prague 38,600,000 CZK 100.00% 5.4.2006 V 

IMMOEAST Projekt Idamantes Holding GmbH A Vienna 35,000 EUR 100.00% 8.4.2006 V 

IMMOEAST Projekt Zerlina Holding GmbH A Vienna 35,000 EUR 100.00% 8.4.2006 V 

IMMOEAST Projekt Dorabella Holding GmbH A Vienna 35,000 EUR 100.00% 8.4.2006 V 

IMMOEAST Projekt Arbaces Holding GmbH A Vienna 35,000 EUR 100.00% 11.4.2006 V 

IMMOEAST Projekt Masetto Holding GmbH A Vienna 35,000 EUR 100.00% 11.4.2006 V 

IMMOEAST Projekt Equuleus Holding GmbH A Vienna 35,000 EUR 100.00% 12.4.2006 V 

IMMOEAST Projekt Eridanus Holding GmbH A Vienna 35,000 EUR 100.00% 12.4.2006 V 

IMMOEAST Projekt Cygnus Holding GmbH A Vienna 35,000 EUR 100.00% 13.4.2006 V 

IMMOEAST Projekt Hydrus Holding GmbH A Vienna 35,000 EUR 100.00% 13.4.2006 V 

IMMOEAST Projekt Ducentesimus Holding GmbH A Vienna 35,000 EUR 100.00% 13.4.2006 V 

IMMOEAST Projekt Secundus Holding GmbH A Vienna 35,000 EUR 100.00% 13.4.2006 V 

Currency 


Stake 




















IMMOEAST Projekt Tertius Holding GmbH A Vienna 35,000 EUR 100.00% 13.4.2006 V 

IMMOEAST Projekt Quartus Holding GmbH A Vienna 35,000 EUR 100.00% 13.4.2006 V 

IMMOEAST Projekt Trecenti Holding GmbH A Vienna 35,000 EUR 100.00% 13.4.2006 V 

IMMOEAST Projekt Sextus Holding GmbH A Vienna 35,000 EUR 100.00% 13.4.2006 V 

IMMOEAST Projekt Septimus Holding GmbH A Vienna 35,000 EUR 100.00% 13.4.2006 V 

IMMOEAST Projekt Octavus Holding GmbH A Vienna 35,000 EUR 100.00% 13.4.2006 V 

IMMOEAST Projekt Nonus Holding GmbH A Vienna 35,000 EUR 100.00% 13.4.2006 V 

IMMOEAST Projekt Decimus Holding GmbH A Vienna 35,000 EUR 100.00% 13.4.2006 V 

IMMOEAST Projekt Duodecimus Holding GmbH A Vienna 35,000 EUR 100.00% 13.4.2006 V 

IMMOEAST Bulgaria 1 EOOD BG Sofia 5,000 BGN 100.00% 17.4.2006 V 

MY BOX Strakonice s.r.o. CZ Prague 200,000 CZK 50.50% 30.5.2006 15.12.2006 Q 

STOP.SHOP. TB Kft. H Budapest 1,530,000 HUF 51.00% 8.6.2006 Q 

STOP.SHOP. Gyöngy Kft. H Budapest 1,530,000 HUF 51.00% 8.6.2006 Q 

STOP.SHOP. BCS Kft. H Budapest 1,530,000 HUF 51.00% 8.6.2006 Q 

Immoeast Dunaj s.r.o. SK Bratislava 200,000 SKK 100.00% 14.6.2006 V 

TriGránit Centrum a.s. SK Bratislava 1,000,000 SKK 25.00% 19.6.2006 E 

IMMOEAST Projekt Tredecimus Holding GmbH A Vienna 35,000 EUR 100.00% 21.6.2006 V 

IMMOEAST Projekt Quindecimus Holding GmbH A Vienna 35,000 EUR 100.00% 21.6.2006 V 

IMMOEAST Projekt Septendecimus Holding GmbH A Vienna 35,000 EUR 100.00% 21.6.2006 V 

IMMOEAST Projekt Quadragesimus Holding GmbH A Vienna 35,000 EUR 100.00% 21.6.2006 V 

IMMOEAST Projekt Vicesimus Holding GmbH A Vienna 35,000 EUR 100.00% 21.6.2006 V 

IMMOEAST Projekt Sexagesimus Holding GmbH A Vienna 35,000 EUR 100.00% 21.6.2006 V 

IMMOEAST Projekt Octogesimus Holding GmbH A Vienna 35,000 EUR 100.00% 21.6.2006 V 

IMMOEAST Projekt Nonagesimus Holding GmbH A Vienna 35,000 EUR 100.00% 21.6.2006 V 

IMMOEAST Projekt Centesimus Holding GmbH A Vienna 35,000 EUR 100.00% 21.6.2006 V 

Wakelin Promotions Limited CY Nicosia 59,327 RUB 100.00% 21.6.2006 V 

Krona Design LLC RU Moscow 8,000,000 RUB 100.00% 21.6.2006 V 

Koral Residence EAD BG Sofia 400,000 BGN 100.00% 23.6.2006 V 

Aragonit s.r.o. CZ Prague 100,000 CZK 100.00% 1.7.2006 V 

S.C. Almera New Capital s.r.l. RO Bucharest 200 RON 50.00% 13.7.2006 1.2.2007 Q 

S.C. Meteo Business Park s.r.l. RO Bucharest 1,000 RON 89.00% 27.7.2006 Q 

S.C. Stupul de Albine s.r.l. RO Bucharest 1,000 RON 89.00% 27.7.2006 Q 

TriGránit Holding Ltd. CY Nicosia 150,000 CYP 25.00% 31.7.2006 E 

Salzburg Center Development S.A PL Warsaw 3,650,000 PLN 100.00% 31.7.2006 V 

IMMOEAST Projekt Babekan Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Despina Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Curzio Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Almaria Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Sarastro Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Barbarina Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Cherubino Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Marcellina Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Cimarosa Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Fenena Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Almansor Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Roschana Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Cinna Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Annius Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

Currency 

Stake 




IMMOEAST Projekt Semos Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Titurel Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Radames Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Montano Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Amfortas Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Abdallo Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Rezia Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Hüon Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Titania Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Andromache Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Polyxene Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Hylas Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Hekuba Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Pantheus Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Chorebe Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

IMMOEAST Projekt Narbal Holding GmbH A Vienna 35,000 EUR 100.00% 1.8.2006 V 

Xantium Sp. z o.o. PL Warsaw 50,000 PLN 100.00% 4.8.2006 V 

Klyos Media s.r.l. RO Bucharest 200 RON 90.00% 4.8.2006 1.3.2007 V 

OCEAN ATLANTIC DORCOL DOO SRB Belgrade 48,510 CSD 80.00% 24.8.2006 V 

Equator Real Sp. z o.o. PL Warsaw 50,000 PLN 51.00% 28.8.2006 Q 

Zenith Real Sp. z o.o. PL Warsaw 50,000 PLN 51.00% 28.8.2006 Q 

Nimbus Real Sp. z o.o. PL Warsaw 50,000 PLN 51.00% 28.8.2006 Q 

Cirrus Real Sp. z o.o. PL Warsaw 50,000 PLN 51.00% 28.8.2006 Q 

Nakupni Centrum Trebic s.r.o. CZ Znoimo 200,000 CZK 50.50% 30.8.2006 Q 

IMMOEAST Polonia Sp. z o.o. PL Warsaw 50,000 PLN 100.00% 6.9.2006 V 

IMMOEAST Projekt Moskau Holding GmbH A Vienna 35,000 EUR 100.00% 8.12.2004 V 

Nakupni Centrum AVENTIN Tabor s.r.o. CZ Znoimo 200,000 CZK 50.50% 18.9.2006 Q 

Centrum Opatov a.s. CZ Prague 2,000,000 CZK 100.00% 22.9.2006 V 

Alpha real d.o.o. SLO Ljubljana 8,763 EUR 100.00% 30.9.2006 V 

Beta real d.o.o. SLO Ljubljana 8,763 EUR 100.00% 30.9.2006 V 

Silesia Residential Holding Limited CY Nicosia 2,000 CYP 70.00% 9.10.2006 Q 

IMMOEAST Despina III B.V. NL Amsterdam 18,000 EUR 100.00% 9.10.2006 V 

IMMOEAST Despina II B.V. NL Amsterdam 18,000 EUR 100.00% 9.10.2006 V 

IMMOEAST Despina V B.V. NL Amsterdam 31,765 EUR 100.00% 9.10.2006 V 

IMMOEAST Despina IV B.V. NL Amsterdam 31,765 EUR 100.00% 9.10.2006 V 

IMMOEAST Despina I B.V. NL Amsterdam 18,000 EUR 100.00% 9.10.2006 V 

Silesia Residential Project Sp. z o.o. PL Katowice 9,321,000 PLN 70.00% 9.10.2006 Q 

Veronia Shelf s.r.o. CZ Prague 200,000 CZK 51.00% 18.10.2006 Q 

MY BOX Kolin s.r.o. CZ Prague 200,000 CZK 50.50% 27.10.2006 Q 

Gangaw Investments Limited CY Nicosia 1,000 CYP 50.00% 30.10.2006 Q 

OAO Kashirskij Dvor-Severyanin RU Moscow 500,000 RUB 50.00% 30.10.2006 Q 

Diamant Real s.r.o. CZ Prague 100,000 CZK 51.00% 31.10.2006 Q 

HEPP III Luxembourg MBP SARL LU Luxembourg 1,000,000 EUR 50.00% 1.11.2006 Q 

MBP I Sp. z o.o. PL Warsaw 50,000 PLN 50.00% 1.11.2006 Q 

MBP II Sp. z o.o. PL Warsaw 50,000 PLN 50.00% 1.11.2006 Q 

HEPP III Sweden Finance AB SWE Stockholm 100,000 SEK 50.00% 1.11.2006 Q 

WINNIPEGIA SHELF s.r.o. CZ Prague 200,000 CZK 100.00% 13.11.2006 V 

BEWO International Kft. H Budapest 3,000,000 HUF 50.00% 14.11.2006 Q 

Currency 


Stake 




















MY BOX Rakovnik s.r.o. CZ Prague 200,000 CZK 50.00% 20.11.2006 Q 

MY BOX Sokolov s.r.o. CZ Prague 200,000 CZK 50.00% 20.11.2006 Q 

MY BOX Hranice s.r.o. CZ Prague 200,000 CZK 50.00% 20.11.2006 Q 

Debowe Tarasy Sp. z o.o. PL Warsaw 50,000 PLN 70.00% 21.11.2006 Q 

Grand Zagreb d.o.o. CRO Zagreb 20,000 HRK 80.00% 30.11.2006 V 

Grand Centar d.o.o. CRO Zagreb 20,000 HRK 80.00% 30.11.2006 V 

Trevima Ltd. CY Limassol 10,000 CYP 100.00% 30.11.2006 V 

OOO Torgoviy Dom Na Khodinke RU Moscow 7,285 RUB 100.00% 30.11.2006 V 

Business Park West-Sofia EAD BG Sofia 500,000 BGN 100.00% 12.12.2006 V 

Blue Danube Holding Ltd. M Floriana 1,500 EUR 100.00% 12.12.2006 V 

BB C - Building A, k.s. CZ Prague 20,000 CZK 100.00% 13.12.2006 V 

BB C - Building B, k.s. CZ Prague 20,000 CZK 100.00% 13.12.2006 V 

BB C - Building C, k.s. CZ Prague 90,000 CZK 100.00% 13.12.2006 V 

Fobos Investment Sp. z o.o. PL Warsaw 50,000 PLN 50.00% 14.12.2006 Q 

SC EFG Urban Achizitii s.r.l. RO Bucharest 1,000 RON 89.00% 14.12.2006 V 

MY BOX Pribram s.r.o. CZ Prague 200,000 CZK 50.00% 15.12.2006 Q 

SBACARO s.r.l. RO Cluj 4,000 RON 50.00% 15.12.2006 Q 

Logistic Contractor s.r.l. RO Ilfov 200 RON 100.00% 18.12.2006 V 

SCT s.r.o. SK Bratislava 52,916,000 SKK 100.00% 21.12.2006 V 

FMZ TM s.r.l. RO Cluj 4,000 RON 50.00% 22.12.2006 Q 

S+B CEE BETA CYPRUS LIMITED CY Nicosia 10,000 CYP 50.00% 29.12.2006 Q 

S+B CEE GAMMA CYPRUS LIMITED CY Nicosia 10,000 CYP 50.00% 29.12.2006 Q 

S+B CEE DELTA CYPRUS LIMITED CY Nicosia 10.000 CYP 50.00% 29.12.2006 Q 

Debowe Tarasy Sp. z o.o. II sp.k. PL Katowice 1,860,239 PLN 70.00% 5.1.2007 Q 

Debowe Tarasy Sp. z o.o. III sp.k. PL Katowice 1,861,085 PLN 70.00% 5.1.2007 Q 

Debowe Tarasy Sp. z o.o. IV sp.k. PL Katowice 1,900,535 PLN 70.00% 5.1.2007 Q 

Loberta Holdings Ltd. CY Nicosia 1,000 CYP 51.00% 10.1.2007 1.3.2007 Q 

Roches Ventures Ltd. CY Nicosia 1,000 CYP 41.00% 10.1.2007 1.3.2007 Q 

Alacor Construction LLC UA Kiev 50,000 UAH 41.00% 10.1.2007 Q 

Alacor Scorta LLC UA Kiev 50,000 UAH 41.00% 10.1.2007 Q 

Alacor City LLC UA Kiev 100,000 UAH 41.00% 10.1.2007 Q 

Central Business Center Rt. H Budapest 172,042,584 HUF 100.00% 15.1.2007 V 

S.C. Arbor Corporation s.r.l. RO Bucharest 13,500 RON 90.00% 29.1.2007 V 

S.C. IE Baneasa Project s.r.l. RO Bucharest 200 RON 100.00% 1.2.2007 V 

MY BOX Breclav s.r.o. CZ Prague 200,000 CZK 50.00% 12.2.2007 Q 

MY BOX Jablonec nad Nisou s.r.o. CZ Prague 200,000 CZK 50.00% 12.2.2007 Q 

Eye Shop Targu Jiu s.r.l. RO Bucharest 200 RON 50.00% 19.2.2007 Q 

Log Center Ploiesti s.r.l. RO Bucharest 200 RON 50.00% 19.2.2007 Q 

Log Center Brasov s.r.l. RO Bucharest 200 RON 50.00% 19.2.2007 Q 

STOP.SHOP.Lucenec s.r.o. SK Bratislava 200,000 SKK 50.00% 19.2.2007 Q 

STOP.SHOP.Ruzomberok s.r.o. SK Bratislava 200,000 SKK 50.00% 19.2.2007 Q 

STOP.SHOP.Zvolen s.r.o. SK Bratislava 200,000 SKK 50.00% 19.2.2007 Q 

Gordon Invest Netherlands B.V. NL Amsterdam 18,000 EUR 100.00% 22.2.2007 V 

Centre Investments s.r.o. CZ Brno 100,000 CZK 100.00% 28.2.2007 V 

Brno Estates a.s. CZ Brno 2,000,000 CZK 100.00% 28.2.2007 V 

Delta Park a.s. CZ Prague 1,000,000 CZK 100.00% 1.3.2007 V 

IMMOEAST Iride IV Project s.r.l. RO Bucharest 200 RON 100.00% 1.3.2007 V 

BEWO d.o.o. Banja Luka BIH Banjaluka 2,000 BAM 50.00% 5.3.2007 Q 

Currency 

Stake 




Currency 

Stake 













Lasuvu Consultants Ltd. CY Nicosia 1,000 CYP 100.00% 6.3.2007 V 

S.C. Union Investitii S.r.l. RO Bucharest 2,000 RON 25.00% 7.3.2007 Q 

SCP s.r.o. SK Bratislava 200,000 SKK 50.00% 19.3.2007 Q 

S.C. Valero Invest s.r.l. RO Bucharest 1,760,000 RON 100.00% 20.3.2007 V 

Immoeast Luxembourg 1 SARL LU Luxembourg 12,500 EUR 100.00% 22.3.2007 V 

Immoeast Luxembourg 2 SARL LU Luxembourg 12,500 EUR 100.00% 22.3.2007 V 

Passat Real Sp. z o.o. PL Warsaw 50,000 PLN 100.00% 27.3.2007 V 

Hekuba SARL LU Luxembourg 12,500 EUR 100.00% 28.3.2007 V 

Log Center Iasi s.r.l. RO Bucharest 200 RON 50.00% 29.3.2007 Q 

Eye Shop Hunedoara s.r.l. RO Bucharest 200 RON 50.00% 29.3.2007 Q 

S.C. Baneasa 6981 s.r.l. RO Bucharest 5,550,000 RON 100.00% 5.4.2007 V 

Bewo International d.o.o. Beograd SRB Belgrade 500 EUR 50.00% 13.4.2007 Q 

S+B CEE ZETA CYPRUS LIMITED CY Nicosia 10,000 CYP 50.00% 18.4.2007 Q 

S+B CEE EPSILON CYPRUS LIMITED CY Nicosia 10,000 CYP 50.00% 20.4.2007 Q 

S+B CEE ETA CYPRUS LIMITED CY Nicosia 10,000 CYP 50.00% 20.4.2007 Q 

*) Owner as of 7.9.2006 (IE instead of IW). 

**) Merged with Immoeast Cora Holding s.r.l. as of 21.9.2006. 

***) IE Projekt Caelum: 20% stake sold to Generali. 

****) Merged with Mistral Real Sp.z o.o. as of 29.1.2007. 

V = Full consolidation, Q = Proportionate consolidation, E = Equity method 

These consolidated financial statements were completed and signed by the Executive Board of IMMOEAST AG on 

5July 2007. 


THE EXECUTIVE BOARD OF IMMOEAST AG 


Norbert Gertner Karl Petrikovics 

Member Chairman 

Christian Thornton Edgar Rosenmayr 

Member Deputy Member 

The consolidated financial statements of IMMOEAST AG and all relevant documents were filed with the Company 

Register of the Commercial Court of Vienna under Registry Number 189637d. 



Auditor’s Report 

(Report of the independent auditor) 

We have audited the consolidated financial statements of IMMOEAST AG, Vienna, 

for the financial year from 1 May 2006 to 30 April 2007. These consolidated financial statements comprise the balance 

sheet as of 30 April 2007 and the income statement, cash flow statement and statement of changes in equity 

for the financial year ending on 30 April 2007 as well as a summary of significant accounting policies and other 

explanatory notes. 

Management’s responsibility for the consolidated financial statements 

Management is responsible for the preparation and fair presentation of these consolidated financial statements in 

accordance with International Financial Reporting Standards (IFRS) as adopted by the EU. This responsibility includes: 

designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial 

statements that are free of material misstatement, whether due to fraud or error; selecting and applying appropriate 

accounting policies; and making accounting estimates that are reasonable under the given circumstances. 

Auditor’s responsibility 

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted 

our audit in accordance with laws and regulations applicable in Austria and in accordance with the International 

Standards on Auditing (ISAs) that were issued by the International Auditing and Assurance Standards Board 

(IAASB) of the International Federation of Accountants (IFAC). These standards require that we comply with ethical 

requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are 

free of material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated 

financial statements. The procedures selected depend on the auditor’s judgment, including an assessment of 

the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk 

assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the 

consolidated financial statements in order to design audit procedures that are appropriate under the circumstances, 

but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also 

includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates 

made by management as well as evaluating the overall presentation of the consolidated financial statements. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit 

opinion.

Opinion 

Our audit did not give rise to any objections. Based on the results of our audit and in our opinion, the consolidated 

financial statements present fairly, in all material respects, the financial position of the group as of 30 April 2007 and 

its financial performance and cash flows for the financial year from 1 May 2006 to 30 April 2007 in accordance with 

International Financial Reporting Standards (IFRS) as adopted by the EU. 

Report on other legal and regulatory requirements 

Laws and regulations applicable in Austria require us to perform audit procedures to determine whether the consolidated 

management report is consistent with the consolidated financial statements and to also determine whether 

the other disclosures in the consolidated management report do not give rise to misconceptions of the position of 

the group. 

In our opinion, the consolidated management report is consistent with the consolidated financial statements. 


KPMG Austria GmbH 

Wirtschaftsprüfungs- und Steuerberatungsgesellschaft 

Auditor’s report 

Yann-Georg Hansa Günther Hirschböck 

Certified Public Accountant Certified Public Accountant 











Analysis of Results 

A. General information 

IMMOEAST AG serves as the holding company for business activities in Central and Eastern Europe within the IMMO- 

FINANZ Group. The primary activity of the company is the acquisition and management of investments in other enterprises. 

Therefore, the development of business in these investments and the earnings they generate are of significant 

importance for an evaluation of IMMOEAST AG. For this reason, additional details on the development of business and 

the results of the group are provided in the following sections in accordance with § 267 (3) of the Austrian Commercial 

Code and in connection with § 251 (3) of the Austrian Commercial Code. The same applies to the description of events 

that occurred after the balance sheet date as well as the use of financial instruments and the related risks. 

B. Financial and non-financial performance indicators (§ 267 (2) 2 of the Austrian Commercial Code) 

The development of business at IMMOEAST AG was excellent during 2006/07, not only reflecting successful performance 

but also confirming the company’s growth strategy. Consolidated revenues reached EUR 192.9 million, for an 

increase of 141.1% over the 2005/06 financial year. EBIT rose from EUR 156.3 million to EUR 541.3 million. The largest 

component of earnings was provided by revaluation gains of EUR 493.1 million. Net profit for the 2006/07 financial 

year totalled EUR 536.2 million, for an increase of more than 269%. Gross cash flow rose by 154.9% to EUR 63.4 million 

and led to a cash flow margin of 43.4%, which represents an excellent level in branch comparison. 

IMMOEAST AG endeavours to construct and manage its buildings in accordance with the latest technical standards 

and the most recent environmental protection regulations. 

During the reporting year IMMOEAST AG employed 16 persons in Poland through an energy supply company. 

C. New investments completed during the 2006/07 financial year 

The consolidation range increased from 154 in 2005/06 to 300 during the 2006/07 financial year. The following major 

acquisitions were made during the reporting period: 

Segment CEE (Central and Eastern Europe) 

During the first quarter of 2006/07 IMMOEAST AG acquired a 25% stake in the TriGránit Group, the leading property 

developer in Central and Eastern Europe, through TriGránit Holding Limited. This investment gives IMMOEAST AG a 

holding in the TriGránit portfolio as well as pre-emptive rights to all TriGránit projects at market prices. 

IMMOEAST AG acquired 100% of the shares in the Polish Salzburg Center Development S.A. as of 31 July 2006. This 

company owns an office building on the southwest border of the so-called “Central Business District” in Warsaw. 

During the second quarter of 2006/07 IMMOEAST AG acquired 100% of the shares in the Polish Xantium Sp.z o.o., 

which purchased the Brama Zachodnia office building through an asset deal. The project building is situated near 

the construction site of the Equator Office in the Jerozolimskie Business Corridor, the most dynamic office district 

in Warsaw. A number of shopping centres (Reduta, Blue City) are also located nearby. Brama Zachodnia is a modern 

14-storey office complex that includes offices and a conference room as well as a restaurant and building services 

rooms. The object is fully let, primarily to well-known international corporations such as Ericsson. 

A 51% stake was acquired in each of four Polish companies as of 28 August 2006: Equator Real Sp.z o.o., Zenith Real 

Sp. Z o.o., Nimbus Real Sp. Z o.o. and Cirrus Real Sp.z o.o. This project involves the construction of four office buildings 

in the most dynamic commercial district of the Polish capital. It will be managed by a joint venture that includes 

a well-known international property developer with significant experience in Warsaw.


As of 9 October 2006 IMMOEAST AG purchased a 70% stake in the Cypriote Silesia Residential Holding Limited and, 

through the transaction, also acquired a 70% stake in this company’s Polish subsidiary Silesia Residential Sp.z.o.o. 

The Debowe Tarasy – Silesia City Center Residential development project involves the construction of 980 apartments 

in four phases. The site has optimal transport connections and a good infrastructure, which also includes a 

recreation area with sports facilities north of the project location. Construction will take 13 months. 

During the third quarter of 2006/07 IMMOEAST AG completed its largest investment in Poland to date in the form of 

a joint investment with Heitman European Property Partners. The acquisition of 50% stakes in the Polish MBP I Sp. z 

o.o. and MBP II Sp. z o.o. transferred the Mokotow Business Park to the company’s portfolio. The Mokotow Business 

Park comprises nine office towers and is one of the most successful office projects in Warsaw. 

The Rondo Jazdy Polskiej, a further joint venture project in Warsaw, was acquired by the Polish Fobos Investment 

Sp. z o.o as of 29 December 2006. The company owns an office development project that is located in the centre of 

Warsaw. 

The Passat Office Building in Warsaw, a standing investment, was acquired as of 29 March 2007 through the purchase 

of 100% of the shares in the Polish Passat Real Sp. z o.o. The Passat Office Building is a modern office property 

that is located adjacent to the Mistral Office Building owned by IMMOEAST AG. The object has an excellent location, 

with easy access via public transportation. Both the city centre of Warsaw and the international airport can be 

reached in 10 minutes. 

As of 9 June 2006 IMMOEAST AG acquired a 25% stake in the Slovakian TriGránit Centrum a.s., which is developing 

the Lakeside project in Bratislava. This investment is classified as an associated company. 

The Slovakian SCT s.r.o. was fully consolidated by IMMOEAST AG as of 21 December 2006. This company owns the 

Arkadia shopping centre, which is located on the eastern border of Trnava near a densely populated residential area. 

The Czech Aragonit s.r.o. was acquired in full as of 1 July 2006, which added the Skofin Office Building in Prague 

to the IMMOEAST portfolio. As of 30 May 2006 a 50.50% stake was acquired in My Box Straconice s.r.o., a project 

company in the Czech Republic. 

The Czech Diamant Real s.r.o. was fully consolidated by IMMOEAST AG as of 31 October 2006. This transaction led to 

the purchase of one of the larger modern office properties (“Diamond Point”) in the capital city of Prague. In addition, 

49% of the shares in Veronia Shelf s.r.o., the parent company of Diamant Real s.r.o., were sold to the joint venture 

partner Allianz projštovna, a.s. as of 30 November 2006. 

As of 13 November 2006 IMMOEAST AG acquired 100% of the shares in the Czech WINNIPEGIA SHELF s.r.o. and, from 

this company, the Grand Pardubice shopping centre. This property is located only several minutes from the historical 

old city and castle in Pardubice, and is comprised of two connected building complexes. 

During the third quarter of 2006/07 IMMOEAST AG concluded its largest investment to date on the Czech office 

market. As of 13 December 2006 the company acquired 100% of the shares in Building A k.s., Building B k.s. and 

Building C k.s., which led to the takeover of three objects in the BB Centrum office park. All three properties are fully 

let to well-known companies, in particular subsidiaries of foreign corporations. 

IMMOEAST AG acquired 100% of the shares in the Czech Centre Investments s.r.o., Delta Park a.s. and Brno Estates 

a.s. as part of a uniform transaction during the fourth quarter of 2006/07. This portfolio comprises four standing 

investments and two forward purchases: Jungmannova Plaza, a class A office property that is located in the historical 

city centre of Prague, is almost fully let and has international tenants; Sylva Taroucca, a historical building on the 

Graben in Prague that is fully occupied; OC Petrov: an object located in the centre of Brno that is also almost fully 











let; Brno Business Park – Phase 1: an office complex in Brno that is comprised of two buildings; Brno Business Park 

– Phase 2: this class A office development project in Brno also comprises two buildings and represents an extension 

to the existing Brno Business Park – Phase 1 project; Letna Galeria: this shopping and business centre in Prague 7 

is a development project that has received district approval. 

Central Business Center Rt., a Hungarian project company, was fully consolidated by IMMOEAST AG as of 10 January 

2007. The company owns the Central Business Center in Budapest, which is located on the Buda-side of the city near 

the Margit Bridge. 

Segment CIS (Community of Independent States) 

As of 21 June 2006 IMMOEAST AG acquired 100% of the shares in the Cypriote Wakelin Promotions Limited, which has 

an office in Russia, and the Russian Krona Design LLC. These companies own two shopping centres in Moscow: Golden 

Babylon I and Golden Babylon II. Golden Babylon I, the larger of the two objects, is fully rented to attractive tenants 

from the foodstuffs and electronics branches. Golden Babylon II was completed in August 2006 and is also fully let. 

As of 13 November 2006 IMMOEAST AG acquired 50% of the shares in the Cypriote Gangaw Investments Limited and 

the Russian OAO Kashirskij Dvor-Severyanin. This transaction will lead to the construction of the Rostokino Retail 

Park in Moscow through a joint project together with an established Russian property developer. The Rostokino is 

scheduled for completion at the end of 2009, and has an excellent location at the intersection of the Mira Prospect 

and the future fourth ring road. 

IMMOEAST AG acquired 100% of the shares in the Cypriote Trevima Ltd. during the third quarter of 2006/07, which 

also resulted in the takeover of 100% of the shares in this company’s Russian subsidiary OOO Torgoviy Dom Na 

Khodinke. This transaction resulted in the acquisition of the 5th Avenue Shopping Center project, which is a threestorey 

shopping centre with two underground garage levels. 

During the third quarter of 2006/07 IMMOEAST AG concluded a broad-based cooperation agreement in Ukraine, 

which took the form of a joint investment with the well-known Ukrainian developer Alacor. Through a successive 

purchase of shares (from 24.9% to 51% and 41%, respectively) in the Cypriote Loberta Holding Limited and Roches 

Ventures Limited, the Alacor Business Park City logistics and office project and the Alacor Logistic Park Obukhov were 

acquired. Both the Business Park City and the Park Obukhov are located in the south of Kiev and have excellent traffic 

connections. The completion of both projects is scheduled for 2009. 

Segment SEE (South-eastern Europe) 

IMMOEAST AG acquired 100% of the shares in the Bulgarian Koral Residence EAD as of 23 June 2006. A closed 

complex with a 4-star hotel and residential area will be built in Zarevo, 50 km south of the Black Sea resort of Burgas 

in Bulgaria, as a joint investment by IMMOEAST and Prime Property BG. 

As of 12 December 2006 IMMOEAST AG acquired all of the shares in the Maltese Blue Danube Holding Ltd. and its 

Bulgarian subsidiary Business Park West-Sofia EAD. This project involves the revitalisation of a former light industrial 

and administrative complex in four phases to create a business park. 

IMMOEAST AG purchased 80% of the shares in each of the Croatian companies Grand Centar d.o.o. and Grand Zagreb 

d.o.o. as of 30 November 2006, which resulted in the acquisition of the Grand Center office and retail property in 

the capital city of Zagreb. This represents the first direct investment by IMMOEAST AG in Croatia, and was realised 

together with Generali Immobilien AG. The majority of the space in the Grand Center is used as offices, but retail 

space, warehouses and an underground garage are also available. This property has a central location, roughly 

800 m from the historical old city.


As of 13 July 2006 IMMOEAST AG acquired 100% of the shares in S.C. Almera New Capital s.r.l., which owns a property 

in Timis¸oara. This transaction will lead to the creation of a logistics centre portfolio of five to seven objects 

together with the development partner Eyemaxx. A 50% stake in this company was sold as of 1 February 2007 and 

resulted in a changeover to proportionate consolidation as of 30 April 2007. In addition, 89% of the shares in S.C. 

Meteo Business Park s.r.l. and S.C. Stupul de Albine s.r.l. were acquired as of 27 July 2006, resulting in the acquisition 

of the Jandarmeriei property. This project comprises the development of an office complex and residential complex 

in the north of Bucharest. 

On 9 October 2006 IMMOEAST AG started the Craiova shopping centre project in Romania based on a joint venture 

agreement with an experienced general planner and developer in the CEE region with the purchase of a 90% stake 

in the Romanian Klyos Media s.r.l. This shopping centre is located in the north-western section of Craiova, the fifth 

largest city in Romania, and has excellent traffic connections. 

IMMOEAST AG purchased a 15% stake in the Romanian Polus Transilvania Companie de Investitii S.A. as of 2 November 

2006, and thereby acquired the Polus Center development project. This project involves the construction of a 

shopping centre in Cluj, the capital of the booming Romanian province of Transylvania. Completion is scheduled for 

November 2007. 

As of 14 December 2006 IMMOEAST AG purchased an 89% stake in the multi-functional project IUS Brasov with 

office, retail and residential space as well as a hotel. The property is located several minutes north of the commercial 

centre and old city, and offers an attractive infrastructure and good connections to public and private 

transportation. 

The SIBIU joint venture shopping centre project was acquired as of 15 December 2006 from the Cypriote S+B CEE 

Alpha Cyprus Limited (100% subsidiary of S+B CEE) through SBACARO s.r.l., a wholly owned Romanian investment 

company. This object is also located in the north-western region of Romania, directly on the outer ring road and close 

to the historical city centre. The opening is planned for 2009. 

The 100% acquisition of the Romanian Logistic Contractor s.r.l. in December 2006 led to the conclusion of a framework 

agreement for the Bucharest Distribution Park project in Romania. This property is located in the north of Bucharest, 

close to the beltway that surrounds this city and the autobahn that extends to Ploiesti and Brasov in the north. 

The project involves the construction of a modern logistics and distribution park in stages. The realisation of the 

entire project is expected to take three years, and numerous forwarding agents have already expressed an interest. 

As of 22 December 2006 a 50% stake was acquired in the Romanian TM s.r.l, a 100% subsidiary of the Cypriote 

Gesellschaft S+B CEE. This transaction resulted in the acquisition of the Targu Mures specialty shopping centre project. 

The property is located in the emerging economic region of Transylvania (in the north-east of Romania), which 

has a population of 160,000. This specialty shopping centre is scheduled to open in 2009. 

As of 19 February 2007 a stake in S.C. Arbor Corporation s.r.l. was acquired in connection with the Glina specialty 

shopping centre joint venture project, which is being carried out by IMMOEAST AG and a German developer. This 

project involves the purchase of several sites and construction of a specialty shopping centre. The designated location 

is situated on the eastern border of Bucharest, and has an excellent infrastructure as well as ideal transport 

connections. Intensive negotiations with potential tenants are currently in progress. 

IMMOEAST AG and the Euromall developer group concluded an agreement for the construction of a joint venture 

project, the Euromall Residential Park, as of 19 February 2007 through the acquisition of all shares in the Romanian 

S.C. IE Baneasa Project s.r.l. The site is located in the north-western part of Bucharest, in an area where a number of 

high-quality residential objects are currently under construction. This project involves the construction of residential 

space in the middle to upper segment, whereby completion will take place in four phases over a period of four to five 

years. 











As part of activities carried out through a joint venture between IMMOEAST AG and the developer Eyemaxx, 50% 

of the shares in each of the two Romanian companies Eye Shop Targu Jiu s.r.l. and Eye Shop Hunedoara s.r.l. were 

acquired during the fourth quarter of 2006/07. Plans calls for the construction of specialty shopping centres and 

shopping malls in the major economic and industrial cities of Romania. 

A further transaction during the fourth quarter involved the purchase of 50% of the shares in the Romanian Log Center 

Ploiesti s.r.l., Log Center Iasi s.r.l. and Log Center Brasov s.r.l A logistics portfolio will be compiled through a joint venture 

with the developer Eyemaxx. The objects will be situated at major economic and industrial sites in the regional 

cities of Romania, which are undersupplied with modern warehouse and logistics facilities at the present time. The 

realisation of these projects is planned to take place over the coming three to five years. 

The Euromall Galati Shopping Center, a joint venture project in Romania, was started at the end of March 2007 

through the acquisition of the Romanian S.C. Union Investitii s.r.l. This project includes the construction and development 

of a modern shopping centre. In addition to shops, the Euromall Galati will also contain an entertainment area 

and a food court. The site is located at the centre of Galati near the main Domneasca road; it can be easily reached 

by private transportation, and is opposite the bus terminal and also close to the main railway station. The completion 

of this project is planned for the end of 2007. 

At the end of 2006/07 IMMOEAST AG acquired 100% of the shares in two Romanian companies, S.C Valero invest 

s.r.l. and S.C. Baneasa 6981 s.r.l., and thereby took over the Victoria Park office complex, a joint project under development 

by these firms in Bucharest. This project involves the construction of a class A office complex, which will 

comprise four connected building sections. The site is located in the northern part of Baneasa, only 9 km from the 

city centre and 5 km from the airport. The surrounding area is considered to be the political centre of the city because 

the Romanian government and numerous embassies are situated here. 

IMMOEAST AG also completed its first investments in Serbia during the second quarter of the 2006/07 Business 

Year. An 80% stake in OCEAN ATLANTIC DORCOL DOO, a company with headquarters in Belgrade, was acquired as of 

24 August 2006; this transaction added the Francuska residential project to the IMMOEAST portfolio. The project 

entails the construction of 130 apartments and 184 underground garage spaces. 

During the second quarter of the 2006/07 Business Year IMMOEAST AG also made its first investments in Slovenia by 

acquiring 100% of the shares in Alpha Real d.o.o. and Beta Real d.o.o. as of 30 September 2006. These transactions 

led to the takeover of two specialty shopping centres in Kranj and Nove Mesto. The facilities are located at central 

sites in the respective cities and are fully let. 

IMMOEAST AG has no expenditures for research and development (§ 267 (3) 3 of the Austrian Commercial Code). 

D. Financial instruments and risk management (§ 267 (3) 4 of the Austrian Commercial Code 

IAs an international company, IMMOEAST AG is exposed to various financial risks. The most important financial risks 

for the Group are associated with possible changes in foreign exchange rates, interest rates, and stock prices as well 

as the creditworthiness and liquidity of customers and business partners. The goal of IMMOEAST AG is to actively 

control these risks through systematic management. 

In accordance with IAS 32 and IAS 39, a distinction is made between primary and derivative financial instruments. 

Primary financial instruments include investments in other companies that are reported under financial assets as 

well as securities and loans granted, trade accounts receivable, available-for-sale securities and deposits with financial 

institutions. Available-for-sale financial assets are carried at fair value; all other financial assets are shown at 

amortised cost. The determination of fair value is based on market prices or calculated in accordance with recognised 

valuation methods. Primary financial instruments recorded under liabilities are comprised primarily of financial


liabilities and trade accounts payable, which are shown at amortised cost. Derivative financial instruments are used 

to hedge the risk associated with fluctuations in foreign exchange rates and interest rates arising from business 

operations as well as the risk associated with monetary investments and financing. 

Default/credit risk 

Credit risk (default risk) is understood to represent the risk that one party to a financial instrument causes the other 

party to incur a financial loss by failing to meet a financial obligation. In accordance with IFRS 7.36, an entity must disclose 

– for each class of financial instrument – information on the maximum exposure to credit risk as of the closing 

date without taking account of any collateral held or other enhancements and also provide a description of collateral 

received and any credit enhancements as well as information on the carrying value of the financial assets whose 

contract terms were amended and which would have been classified as past due or impaired under the previous contract 

terms. In accordance with IFRS 7.B9, the amounts offset in keeping with IAS 32.42 ff. and impairment charges 

as defined in IAS 39 should be deducted from the gross carrying value of financial assets. The remaining amount 

represents the maximum credit risk. Collateral held in security and other credit enhancements are not included in this 

calculation, but only disclosed separately (IFRS 7.36(b)). 

Credit risks arise from the possibility that the counterparty to a transaction fails to meet his/her obligations, and the 

Group incurs financial damages as a result. The maximum credit risk for assets is represented by the amounts shown 

on the balance sheet. The risk of default associated with financial assets is reflected in impairment charges. The risk 

of default for IMMOEAST AG is low because the credit standing of customers is reviewed on a regular basis, and no 

single tenant is responsible for more than 5% of total outstanding receivables. 

The volume of primary financing instruments held by the Group is shown on the balance sheet, whereby the value of 

financial assets represents the maximum risk of default. The risk of default associated with other primary financing 

instruments and derivative financial instruments is also low because all financing transactions are concluded with 

financial institutions that have excellent credit ratings. 

The most important instrument for the management and control of default risk is the diversity of the property portfolio 

and the selection of a suitable tenant structure for each property. The risk of default on receivables due from 

tenants is low because tenants are generally required to provide collateral (for residential properties: cash deposits, 

for commercial properties: bank guarantees or cash deposits) and the credit standing of tenants is monitored on a 

regular basis. 

Market risk 

Market risk is the risk that the fair value or future cash flows of a financial instrument may fluctuate due to a change 

in market prices. There are three types of market risk: foreign exchange risk, interest rate risk and other price risks. 

Foreign exchange risk 

Foreign exchange risks can affect IMMOEAST AG in two forms: fluctuation in foreign exchange rates can influence the 

results of valuations, and also have an impact on the asset position of the company. 

The results from companies located outside the Euro zone, which are included using full or proportionate consolidation, 

are translated based on the functional currency of the local company in accordance with the modified current 

rate method. The expert opinions on properties are prepared in Euros and fluctuations in exchange rates will influence 

the results from the revaluation of properties. 

An increase in foreign exchange rates compared to the Euro will lead to higher Euro amounts in the fair values of 

investment properties than the amounts reflected in the expert opinions from the prior year. When the latest value is 

compared with the unchanged amount from a prior year expert opinion in Euro, the translation of the prior year Euro 

amount back into the functional currency (local currency) leads to a lower value – because of the higher exchange 

rate – and therefore to a write-down. If the value in the expert opinion rises, this foreign exchange effect reduces the 











upward potential for the valuation of the property; if the value in the expert opinion is lower, this effect increases 

the write-down. 

A decrease in foreign exchange rates compared to the Euro lead to lower Euro amounts in the fair values than the 

amounts shown in prior years when the fair values of properties are translated. When the latest value is compared 

with the unchanged amount from a prior year expert opinion in Euro, the translation of the prior year Euro amount 

back into the functional currency (local currency) leads to a higher value – because of the lower exchange rate – and 

therefore to a write-up. If the value in the expert opinion rises, this foreign exchange effect increases the upward for 

the valuation of the property; if the value in the expert opinion is lower, this effect reduces the write-down. 

As of 30 April 2007, the net revaluation income recognised by IMMOEAST AG totalled TEUR 493,095.1. This figure 

comprises revaluation income of TEUR 567,003.6 and impairment charges of TEUR 73,908.5. Part of the impairment 

charges resulted from an increase in the value of the local currency compared with the Euro. This effect involved 

properties in Hungary, Poland, Slovakia and Romania. 

IAS 21 calls for the translation of monetary assets and liabilities at the average exchange rate in effect on the balance 

sheet date as well as the recognition of any gains or losses to the income statement. For this reason, fluctuations in 

exchange rates can have a direct impact on the asset position of the Group. 

The risk of devaluation associated with cash balances in foreign currencies is offset by the rapid conversion of these 

funds into euros or through investments in these currencies. In addition, the low USD cash balances are used for 

investments in USD to which the group is committed. 

Another management instrument to minimise foreign exchange risk is the restrictive use of foreign currency credits 

in Europe. In this region, the risk arising from adverse foreign exchange effects is outweighed by the advantages of 

low interest rates. 

In order to limit the foreign exchange risk associated with rental income, contractual agreements with tenants in 

countries where the functional currency is not the Euro generally call for the payment of rents in Euro or link the rental 

payments to the Euro exchange rate on particular dates. 

Derivative financial instruments are also used to manage foreign exchange risk. The derivative financial instruments 

used by IMMOEAST AG to hedge foreign exchange risk are recorded as independent transactions and not as hedge 

transactions. Hedge accounting as defined in IAS 39.85 – IAS 39.102 is not applied because the requirements stated 

in these regulations are not met. 



shown under “other liabilities”. 

Any changes in this market value are recognised as income or expenses under financial results.



to hedge foreign exchange risk. 





Interest rate risk 

As an international company, IMMOEAST AG is exposed to the risk of interest rate fluctuations on various property 

submarkets. Changes in interest rates can influence the earnings recorded by the Group through higher interest costs 

for existing variable rate financing, and can also have a reflex effect on the valuation of properties. 

Changes in interest rates have a direct influence on the financial results recorded by the Group in that they increase 

the cost of variable rate financing. IMMOEAST AG manages the risk associated with rising interest rates, which would 

lead to an increase in interest expense and a decline in financial results, through the use of derivative financial 

instruments. The derivative financial instruments used by IMMOEAST AG to hedge interest rate risk are recorded as 

independent transactions and not as hedge transactions. Hedge accounting as defined in IAS 39.85 – IAS 39.102 is 

not applied because the requirements stated in these regulations are not met. 


under the balance sheet position ”other financial instruments“, while derivatives with a negative market value are 


Any changes in this market value are recognised as income or expenses under financial results. In addition, the Group 

has concluded financing contracts that carry fixed interest rates. 











fixed interest Reference value as of value as of 


Company Derivative Currency Beginning End Financial institution change rate rate Hedge Currency in 1,000 in TEUR 


MBP I Sp. z o.o. FX FORWARD USD/EUR 4.12.2006 28.9.2007 Aareal Bank AG 1.3383 n.a. Foreign currency (USD) USD 2,407.7 43.3 




MBP I Sp. z o.o. FX FORWARD USD/EUR 4.12.2006 30.9.2008 Aareal Bank AG 1.3507 n.a. Foreign currency (USD) USD 1,975.8 29.8 









MBP I Sp. z o.o. FX FORWARD USD/EUR 4.12.2006 30.12.2010 Aareal Bank AG 1.3814 n.a. Foreign currency (USD) USD 378.5 2.8



to hedge interest rate risk. 





Atom Centrum a.s. 

Centrum Olympia 

CAP EUR 31.3.2006 31.3.2011 HVB Bank Czech Republic a.s. 4.00% 3M-EURIBOR Interest rate EUR 14,418.8 184.1 

Olomouc a.s. CAP EUR 31.8.2005 30.9.2010 HVB Bank Czech Republic a.s. 3.00% 3M-EURIBOR Interest rate EUR 36,115.2 1,390.3 

PERL INVEST a.s. CAP EUR 31.1.2006 27.9.2007 Bank Austria Creditanstalt AG 3.50% 3M-EURIBOR Interest rate EUR 4,920.1 6.3 

Prokopova Development a.s. CAP EUR 31.1.2006 27.9.2007 Bank Austria Creditanstalt AG 3.50% 3M-EURIBOR Interest rate EUR 787.2 1.0 

E.N.G. Property a.s. CAP EUR 31.1.2006 27.9.2007 Bank Austria Creditanstalt AG 3.50% 3M-EURIBOR Interest rate EUR 4,100.1 5.2 

JUNGMANNOVA ESTATES a.s. CAP EUR 31.1.2006 27.9.2007 Bank Austria Creditanstalt AG 3.50% 3M-EURIBOR Interest rate EUR 10,660.2 13.6 

NP Investments a.s. CAP EUR 31.1.2006 27.9.2007 Bank Austria Creditanstalt AG 3.50% 3M-EURIBOR Interest rate EUR 25,355.0 32.4 

J.H.Prague a.s. CAP EUR 31.1.2006 27.9.2007 Bank Austria Creditanstalt AG 3.50% 3M-EURIBOR Interest rate EUR 9,512.2 12.2 

PAN Development a.s. CAP EUR 31.1.2006 27.9.2007 Bank Austria Creditanstalt AG 3.50% 3M-EURIBOR Interest rate EUR 2,904.1 6.7 

IRIDE S.A. CAP EUR 7.8.2006 28.7.2011 Raiffeisen Zentralbank Österreich AG 5.00% 3M-EURIBOR Interest rate EUR 46,069.9 72.0 

Globe 13 Kft. CAP EUR 31.10.2006 31.10.2011 Bank Austria Creditanstalt AG 5.00% 3M-EURIBOR Interest rate EUR 17,450.0 -75.6 

Lentia Real (1) Kft. CAP EUR 31.10.2006 31.10.2011 Bank Austria Creditanstalt AG 5.00% 3M-EURIBOR Interest rate EUR 9,018.0 -40.4 

Szepvölgyi Businesspark Kft. CAP EUR 31.10.2006 31.10.2011 Bank Austria Creditanstalt AG 5.00% 3M-EURIBOR Interest rate EUR 9,700.0 -43.1 

Arpad Center Kft. CAP EUR 31.10.2006 31.10.2011 Bank Austria Creditanstalt AG 5.00% 3M-EURIBOR Interest rate EUR 5,420.0 -23.4 

MBP I Sp. z o.o. SWAP EUR 30.11.2006 30.12.2010 Aareal Bank AG 3.83% 3M-EURIBOR Interest rate EUR 141,661.7 1,833.5 





E. Segment reporting 

Revenues 

IMMOEAST AG recorded revenues of TEUR 192,920.4 in 2006/07. Of this total, 23.8% were generated in Poland, 

the largest regional segment of the Group. Revenues in Poland more than tripled from TEUR 14,692.3 in 2005/06 to 

TEUR 45,845.3 for the reporting year. This growth was supported not only by acquisitions, but also by the excellent 

level of occupancy in the properties owned in this country. Investments in Poland are focused primarily on office, 

logistics and commercial space. The Czech Republic, the second largest regional segment of IMMOEAST AG, generated 

20.8% of Group revenues in 2006/07. Revenues in this segment rose by 76.9% over the previous financial 

year, from TEUR 22,703.6 to TEUR 40,153.3. Hungary, with a 16.9% share of Group revenues, recorded an increase 

of 54.9% over the previous year to TEUR 32,568.4. In Romania, revenues rose significantly from TEUR 14,115.6 in 

2005/06 to TEUR 22,806.3 for the reporting year. Slovakia contributed 12.3% or TEUR 23,633.9 to Group revenues. 

During 2006/07 IMMOEAST AG was able to expand its property portfolio in a further six countries, including four 

countries in South-eastern Europe (SEE): Croatia with revenues of TEUR 1,589.7, Slovenia with TEUR 1,113.1, Bulgaria 

with TEUR 482.5 and Serbia with TEUR 1.2. The regional segment Russia realised revenues of TEUR 24,726.6, which 

represents a share of 12.8%. 


IMMOEAST AG recorded an improvement in operating profit from TEUR 156,269.4 in the previous year to 

TEUR 541,288.7 for 2006/07. The Czech Republic made the highest contribution to EBIT at 29%. This increase was 

supported above all by the positive development of the fair value of properties, which led to revaluation income of 

TEUR 146,145.4.


Romania reported EBIT of TEUR 128,009.7 for 2006/07, which represents an increase of 302.5% over the previous 

year as well as 23.7% of total EBIT recorded by IMMOEAST AG. This development was driven by two main factors: the 

sound increase in the fair value of the properties, which generated revaluation income of TEUR 117,134.2, and strong 

revenue growth in this segment. 

Business activities in Poland also showed very positive development, with EBIT reaching TEUR 81,234.3 in comparison 

to TEUR 56,023.5 in the previous year. The major component of the earnings improvement in this segment was 

also provided by the revaluation of properties. 

The new segment Bulgaria registered EBIT of 78,643.7 in 2006/07, which represents 14.5% of operating profit for the 

Group. The largest contribution to earnings in this segment was generated by the revaluation of properties. 

Slovakia reported sound growth in EBIT. In comparison to the negative EBIT of TEUR 21,420.8 recorded in the previous 

year, the favourable development in the fair value of properties supported an increase in operating profit to 

TEUR 23,816.6. 


Financial results recorded by IMMOEAST AG rose from TEUR 26,676.3 in 2005/06 to TEUR 104,163.5 for the reporting 

year. This development resulted above all from profit on financial investments. Currency translation adjustments in 

the individual countries made a positive contribution of TEUR 15,411.4 (2005/06: TEUR 1,199.6) to financial results. 

The increasing strength of the HUF and RON led to currency translation gains in Hungary und Romania. 

Investments 

IMMOEAST AG invested a total of TEUR 1,480,861.7 during 2006/07, which was allocated as follows: 26.7% in the 

Czech Republic, 23.7% in Russia, 23.4% in Poland, 12.1% in Romania and 7.2% in Hungary. These investments 

focused primarily on office, logistics and commercial properties. 

Cash EBIT margin 

The segment Poland made the highest cash contribution to profit recorded by IMMOEAST AG in 2006/07. The segment 

Hungary fell slightly behind the average cash EBIT margin of 34%, but increased project investments led to 

impressive growth in this indicator over the previous year. Only Serbia and Bulgaria remained significantly below the 

Group average of 34%, but this situation is related to the higher costs incurred for the development projects that are 

currently underway in these countries. 











F. Subsequent events (§ 267 (3) 1 of the Austrian Commercial Code) 

Capital transactions 

IMMOEAST AG carried out another capital increase in May 2007, which involved the issue of 277,941,375 shares 

of bearer stock at a price of EUR 10.20 per share. IMMOFINANZ AG subscribed to 50.46% of this issue and thereby 

retained its holding as of 30 April 2007. 

Acquisitions 

Romania 

After the closing date IMMOEAST AG acquired a 75% stake in Harborside Hotel s.r.l. This project involves the development 

and construction of an annex to the Harborside Constanta Phase 1, with a further 15,600 sqm of retail space 

and a hotel tower with 12,100 sqm of space. IMMOEAST AG will initially hold 75% of the shares, and the remaining 

25% will be owned by the project developer and site owners. Plans call for IMMOEAST AG to acquire this minority 

stake after the project is completed. 

Development also started on the Baia Mare Mall in the north-western region of Romania after 30 April 2007. This 

project represents a shopping and entertainment centre with approx. 43.000 sqm of space on two levels. The start 

of construction is scheduled for the fourth quarter of 2007 and completion is expected during the fourth quarter of 

2008. This development project will be realised through a cooperation between IMMOEAST AG and a large Hungarian 

property company at a total investment volume of EUR 97 million. 

IMMOEAST AG acquired 100% of the shares in S.C. Flash Consult Invest s.r.l. after the end of the 2006/07 financial 

year. This company is the owner of the Euromall Shopping Center in Pitesti, Romania, which has roughly 32,000 sqm 

of letable space. This facility was completed and opened in May 2007. 

A further investment on the Romanian market was the acquisition of the shares in S.C. Dacian Second s.r.l. This project 

involves the development of the Pantelimon Warehouse logistics centre with more than 50,000 sqm of letable 

space in the Romanian capital, and is under realisation together with the European Future Group. 

IMMOEAST AG also acquired a 75% stake in S.C. Red Project Two s.r.l. shortly after the closing date. This company is 

developing a specialty shopping centre and shopping gallery with approx. 43,000 sqm of letable space and parking 

facilities. The building permit should be granted at the end of 2007 and construction is scheduled to start in spring 

2008, with completion following roughly 18 months later. 

Through the acquisition of the Cypriote Gendana Ventures Ltd. in June 2007, IMMOEAST AG took over 100% of the 

shares in the Romanian Real Habitation s.r.l. This company owns a site adjoining the location for the IRIDE Business 

Park, which will be used for a 63,000 sqm expansion to this complex. 

In addition, IMMOEAST AG concluded a cooperation agreement with Eyemaxx for the development of a retail portfolio 

in Romania. This portfolio will comprise specialty shopping centres and shopping malls in mid-sized Romanian 

cities. 


On 3 May 2007 IMMOEAST AG acquired a 5% stake in UTILITY PARK WEST s.r.o. This project will develop the Utility 

and Office Park West in Prague in four stages. The total investment is estimated at EUR 39 million, and IMMOEAST 

AG will provide mezzanine capital.

Slovakia 

IMMOEAST AG acquired 10% of the shares in BIG BOX LEVICE s.r.o. and BIG BOX LIPTOVSKÝ MIKULÁŠ s.r.o. after the 

balance sheet date. Plans are in preparation for the construction of specialty shopping centres with approx. 5,500 

sqm of letable space as part of the Big Box Phase 2. IMMOEAST AG will purchase the remaining 90% of shares in 

these companies after the projects are completed and profitable rental contracts have been signed for at least 80% 

of the space. 

The Trencín and Nové Zámky locations opened in 2006. The other specialty shopping centres are planned to open in 

autumn 2007 and during 2008. 

G.Informationoncapital(§243a(1)oftheAustrianCommercialCode) 

The share capital of IMMOEAST AG totalled EUR 555,882,750 as of 30 April 2007 (2005/06: EUR 222,353,100) and is 

divided into 555,882,750 (2005/06: 222,353,100) zero value shares. 

The classification of shares as of 30 April 2007 is as follows: 

Number of shares Share capital in EUR Number of shares Share capital in EUR 

30 April 2007 30 April 2007 30 April 2006 30 April 2006 

Registered shares 2 2 2 2 

Bearer shares 555,882,748 555,882,748 222,353,098 222,353,098 

Total 555,882,750 555,882,750 222,353,100 222,353,100 

The share premium in the individual financial statements prepared in accordance with Austrian commercial law 

includes appropriated reserves of TEUR 3,613,705,967 (2005/06: TEUR 1,195,616,004) from capital increases made 

in accordance with § 229 (2) 1 of the Austrian Commercial Code in conjunction with § 130 (2) of the Austrian Stock 

Corporation Act. 

The capital increase carried out in 2006/07 generated a premium of TEUR 2,418,089,963 (2005/06: TEUR 962,047,746), 

which was credited to the share premium account. The equity ratio of IMMOEAST AG equalled 97.8% as of 30 April 

2007. 

IMMOFINANZ AG holds 50.46% of the shares in IMMOEAST AG. 


The articles of association do not contain any provisions that extend above and beyond legal requirements governing 

the appointment of persons to the Executive Board and Supervisory Board or the amendment of the articles of 

association. 

There are no agreements that would take effect or be amended or terminated by a change in control. 

There are no agreements between the company and the members of its Executive Board or Supervisory Board to pay 

compensation in the event of a public offer. 

The annual general meeting on 14 September 2006 authorised the Executive Board to increase share capital in 

accordance with § 169 of the Austrian Stock Corporation Act. This authorisation is valid until 24 November 2011 and 

covers an increase of up to EUR 277,941,375 to a total of EUR 833,824,125. An increase of EUR 277,941,375 in share 

capital was approved by the Executive Board through resolutions passed on 30 April 2007 and 21 May 2007 and was 

subsequently carried out. 











H.Outlook(§267(3)2oftheAustrianCommercialCode) 

IMMOEAST AG operates in a business environment that produces above-average growth compared to other economic 

regions in Central Europe. Based on the financial power and well-considered expansion strategy of IMMOEAST AG, 

the growth of the Group can be expected to reflect the dynamics of this market. IMMOEAST AG intends to meet its 

objectives by further diversifying the Group’s portfolio by region and sector. Plans also call for the strengthening of 

activities in the field of property development. In the CEE region, the Group will continue to expand its market position. 

Additional investments will also be made in the SEE and CIS regions, where higher returns can be expected at 

the present time. In order to successfully develop these markets, partnerships will be established with local property 

developers. 


THE EXECUTIVE BOARD 

Norbert Gertner Karl Petrikovics 

Member Chairman 

Christian Thornton Edgar Rosenmayr 

Member Deputy Member

Valuation Certificates 

Romania 












Russia












Bulgaria, Croatia, Poland, Serbia, Slovakia, Slovenia, Czech Republic, Hungary











262 IMMOEAST Annual Report 2006/07












Glossary 

ATX: Austrian Traded Index. 

ATX Prime: Includes all shares in the Prime Market segment 

of the Vienna Stock Exchange. 

Cash EBIT margin: Cash EBIT (=EBIT, depreciation, amortisation, 

revaluation of properties and reversal of negative 

goodwill). 

Cost model: IFRS accounting method for property, which 

is similar to the method required by the Austrian Commercial 

Code and calls for annual depreciation independent 

of fair value. 

DAX: German stock index. 

Discounted cash flow method: Method used to determine 

value through the discounting of payment flows. 

Diversification: Distribution of property investments 

among various sectors and geographic regions to minimise 

risk. 

Earnings per share: Net profit divided by the weighted 

average number of shares outstanding. 

EBIT: Earnings before interest and tax, or operating 

profit. 

EBT: Earnings before tax. 

EPRA: European Public Real Estate Association, an 

organisation of listed property companies in Europe. 

Fair value model: IFRS accounting method for property, 

which is based on actual realisable market value. 

Fair value: The market value of property as determined 

by the valuation committee. 

Gearing: Ratio of net debt to equity. 

GPR-15 Real Time Index: Global Property Research (GPR) 

prepares a stock index that covers the 15 largest listed 

property companies in Europe; of these companies, eight 

are located in Continental Europe. 

Gross cash flow: Increase or decrease in cash and cash 

equivalents arising from cash inflows and outflows during 

the business year. 

IAS 40: IAS 40 provides enterprises with an option for 

recording real estate held as investment property; companies 

may choose between a fair value model and a 

cost model (also see definitions of fair value model and 

cost model). 

IATX: Branch index for property stocks in the ATX. 

IFRS and IAS: International Financial Reporting Standards 

and International Accounting Standards. 

ISIN: International Security Identification Number (code 

number for stocks and bonds). 

Market capitalisation: The market value of a stock corporation 

(stock price x number of shares). 

MSCI World Index: Stock index published by Morgan 

Stanley Capital International (MSCI), which is based on 

roughly 2,000 stock prices from over 20 countries; in 

addition to a global index, MSCI also issues regional 

indexes (MSCI Europe Index). 

Net operating income (NOI): Direct payment flows allocated 

to a property, which are also used in determining 

its value. 

P/E ratio: Price/earnings ratio, an indicator of the market 

valuation of a stock. 

Stock performance: Development of the value of a 

stock.

Financial Calendar 

13 September 2007 

8th Annual General Meeting 

14 September 2007 

Report on the First Quarter as of 31 July 2007 

20 December 2007 

Report on the First Six Months as of 31 October 2007 

20 March 2008 

Report on the First Three Quarters as of 31 January 2008 

Investor Relations Contact: Margit Hermentin 

Shareholders’ Telephone: +43/1/532 87 60-0 

E-Mail: investor@immoeast.com 

www.immoeast.com 

Imprint 


Bankgasse 2 

A-1010 Vienna 

Phone: +43/1/532 87 60-0 

Fax: +43/1/532 87 60-760 

E-Mail: investor@immoeast.com 

www.immoeast.com 

Consulting and Coordination: BCA Mensalia 

Design: Büro X 

Photos: IMMOFInAnZ archive, Hanna Haböck, Herta Hurnaus 

Disclaimer: 

This annual report includes assumptions and forecasts that 

were based on information available up to the copy deadline on 

31 July 2007. If the assumptions underlying these forecasts are not 

realised or risks as described in the risk report should in fact 

occur, actual results may differ from the results expected at this 

time. This annual report does not represent a recommendation to 

buy or sell shares in IMMOEAST AG.


Bankgasse 2 

A-1010 Vienna 

Phone: +43/1/532 87 60-0 

Fax: +43/1/532 87 60-760 

marketing@immoeast.com 

www.immoeast.com

IMMOEAST Annual Report 2006/07

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