IMMOEAST Annual Report 2006/07

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
Report by the Executive Board 35
Highlights 2006/07
Business Model and Strategy
Portfolio Structure
Corporate Governance and Outlook
Property Portfolio
Development of Business
Consolidated Financial Statements
Service and Glossary
Investors profit from sound
economic economic development and
high returns
Good opportunities for growth
through projects by IMMOEAST
holdings TriGránit TriGránit and Adama