Immoeast postpones or cancels projects in Romania amounting to 2.4 billion eurosPublish date: 19-12-2008
Immoeast, one of the greatest investors on the Romanian real estate market, postpones or cancels 54 projects in Romania, with a market value estimated at 2.4 billion euros, reveals the Financial quarterly report of the Austrian fund.
The report for the period 1 August -31 October 2008 shows that Immoeast portfolio in Romania comprises 80 properties with a lettable area of over 2 million square feet and a value estimated at just over one billion euros.
Thus, the number of projects decreased by 54 against the published report for the period May - July, from 134 to 80 properties, but in the document posted Thursday on the website of the group, the projects included in plans for postponement or cancellation are excluded, the Austrian company mentions.
"This figure includes real estate assets, projects under construction and real estate inventory property independent of planned cancellations and postponements", specifies Immoeast.
At the end of July, the market value of the 134 projects was estimated at 3.44 billion euros.
In the press release attached to the financial report for the quarter ended on 31 October, Immoeast announces that 29 projects were postponed and 51 more were completely cancelled, on all markets where it is present.
In this context, the share of the Romanian market portfolio in the total assets held by the Austrian group has declined by nearly eight percentage points, from 31.6% to 23.7% in the report for the second quarter of the fiscal year.
Immoeast recorded a net loss of 1.86 billion euros in the period under review compared to a gain before taxes of 299 million euros in the corresponding period of 2007, due to the effects of the global financial crisis and the turmoil in the credit markets, which generated " a massive liquidity crisis. "
"At present, Immoeast AG is facing the most difficult phase of its history (...) A significant part of the current problems are the result of decisions taken by management in 2007, which now have negative effects on liquidity", shows the financial report of the group.
During the second reporting quarter, Immoeast replaced the financial director and the general manager.
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