BUWOG, a subsidiary of the Immofinanz AG, has sold another major portfolio. In Carinthia, 35 properties with a total of 781 apartments were sold to the ÖSW Group, the largest private non-profit development company in Austria. Seven of these properties were owned directly by BUWOG and 28 by ESG, an affiliate managed by BUWOG. The transaction price exceeded the carrying amount.
The provincial capital of Klagenfurt represents the focal point of the sold portfolio with 515 apartments in 18 buildings. There are an additional 35 apartments in Villach as well as numerous other apartments in smaller buildings at other locations throughout Carinthia. The residential space in these properties totals around 59,000 sqm.
After the sale of the Vorarlberg portfolio and major parts of the portfolio in Styria to local investors, this transaction is a further step in BUWOG’s concentration on its core markets. Further sales transactions by BUWOG in the other Austrian provinces should follow during the coming quarters.
Immofinanz Group recently recorded a yield of 7.5 percent on the German residential market and 4.8 percent in Austria, said Daniel Riedl, COO of IMMOFINANZ Group and Chairman of the BUWOG Supervisory Board.
