IMMOEAST Annual Report 2006/07

44 IMMOEAST Annual Report 2006/07
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.