IMMOEAST Annual Report 2006/07

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
Report by the Executive Board 43
Highlights 2006/07
Business Model and Strategy
Portfolio Structure
Corporate Governance and Outlook
Property Portfolio
Development of Business
Consolidated Financial Statements
Service and Glossary
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