Austrian property company Immoeast and its parent company Immofinanz said on Monday they plan to jointly purchase the real estate division of Constantia Privatbank for EUR 440mln. Under the deal, Immoeast will pay Constantia EUR 264mln for a 60% stake in the unit, with Immofinanz paying EUR 176mln for the remainder. The transaction has yet to be approved by shareholders at the extraordinary general meetings of Immofinanz and Immoeast on 23 July and 25 July respectively.
Austrian property company Immoeast and its parent company Immofinanz said on Monday they plan to jointly purchase the real estate division of Constantia Privatbank for EUR 440mln. Under the deal, Immoeast will pay Constantia EUR 264mln for a 60% stake in the unit, with Immofinanz paying EUR 176mln for the remainder. The transaction has yet to be approved by shareholders at the extraordinary general meetings of Immofinanz and Immoeast on 23 July and 25 July respectively.
The real estate activities to be acquired will be incorporated into a new company called I&I Real Estate Asset Management, which will have a staff of around 600. I&I will focus in particular on managing and floating real estate funds for institutional investors. It will also handle the asset management of all Immoeast and Immofinanz properties.
Constantia Privatbank's real estate division includes the open-ended fund Constantia Real Estate with investments in Germany and Austria, property and facility management company IMV Immobilien Management und Verwaltung, property developer Constantia Immobilien Development, asset manager Credo Real Estate and brokerage firm CPB Immobilientreuhand.
The purchase price was based on an appraisal by Ernst & Young and is around 4 times the management fees for 2008, Immoeast said. It added that the acquisition is expected to have a direct positive effect on the earnings of the Immofinanz/Immoeast group.
