Although it recently began construction of an industrial park near Bucharest, the Austrian property company has revealed that it will be selling off its Romanian portfolio. This is part of a larger move to offload the company’s entire logistics portfolio around Europe. The Austrian company owns three logistics projects in Romania: one near Bucharest, in Pantelimon, and two in Ploiesti and Timisoara. Immofinanz recently started the construction of two logistics warehouses in Mogosoaia, near Bucharest. In addition to this scheme, the company owns a plot in the northern city of Brasov and another in Sura Mica Industrial Park near Sibiu.
“We intend to concentrate the portfolio on our core retail and office sectors and further expand Immofinanz’s competitive position in these areas,” explained Immofinanz CEO Oliver Schumy.
The company’s Romanian properties represent 14.2 percent of the company’s total portfolio, including 87 properties (20 standing investments, 7 developments and 60 pipeline projects) with a carrying amount of €949.2m (€665.8m standing, €18.3m in developments, €265.1m pipeline). The expected fair value after completion of the current Group’s development projects in Romania amounts to €97.7m. At the end of the 2014/15 financial year, rental income in Romania fell to €46.7m from €47.8m, which accounts for 11.0 percent of the group’s total rental income.
