IMMOEAST Annual Report 2006/07

32 IMMOEAST Annual Report 2006/07
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
As of 30.4.2007
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%
Czech Republic 14.1%
Hungary 14.7%
33.4% Romania
16.3% Poland
*) Croatia, Serbia, Slovenia,
Estonia, Lithuania