Austria’s Immofinanz has issued €580m of new shares to cement its international position in the property market. The real estate company will issue 83.9 million new shares between 21 April and 23 May at a price of €6.90, with a three-for-one subscription ratio.
The new shares will be listed on the Vienna stock exchange on 30 May.
“Just as we have been Austria’s leading property investor for some time, we wish to play an equally dominant role across central Europe,” said Immofinanz chairman Karl Petrikovics. “The enlargement of the European Union has made this area a hotbed of economic opportunities.”
Immofinanz has stakes in 977 properties covering 5.6m m² of floor space in Austria, Germany, Switzerland, Italy, Poland, Slovakia, Hungary and the Czech Republic.
It plans to invest further in Poland, Slovakia, Hungary and the Czech Republic, and wants to become a bigger player in Germany. It is currently in negotiations to buy a residential portfolio containing 1,500 apartments in Berlin.
“There has never been a better time to build up an attractive portfolio in Europe’s strongest economy,” said Petrikovics.
Immofinanz reported strong earnings growth in the first quarter. Earnings per share rose by 20% to €0.30. During the first quarter, the company’s market capitalisation increased by €500m to €1.8bn.
Immofinanz recently made its first investment in Russia. Through its Immoeast unit, it bought a 25.86% stake in Russian property company Fleming Family & Partners (FF&P) Russia Real Estate.
