IMMOEAST Annual Report 2006/07

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
Report by the Executive Board 37
Highlights 2006/07
Business Model and Strategy
Portfolio Structure
Corporate Governance and Outlook
Property Portfolio
Development of Business
Consolidated Financial Statements
Service and Glossary
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.