Capital advantage

Austrian developer Immoeast has reported a two-fold increase in pre-tax profits for Q1 (May through July) of its 2007/2008 financial year, to E114.2 (zł.430.3) million. The firm's EBIT result was E93.1 (zł.350.9) million for the period, with revenues of E62.3 (zł.234.7) million. The firm's capital increased over 78 percent through the financial year to reach E7.76 (zł.29.2) billion, thanks largely to a share issue last May.

Company executives believe that Immoeast's large reserve of capital gives it an advantage over other development firms on the market which have to compete for institutional financing at high interest rates.

"Immoeast is a healthy, profitable company and we are currently experiencing stable growth, thanks to the capability to finance our own projects," said Karl Petrikovics, Immoeast's general director, adding, "The positive effect of our strategic activities over the past few months is already apparent."

By the end of Q1, the company had 426 completed properties in its portfolio, offering 55.41 million sqm across Central, Eastern and Southeastern Europe. The company is slowly shifting its focus to southeastern territories. According to Petrikovics, these markets are more dynamic, particularly in terms of retail development, which he believes has a significant effect on the entire real-estate market.

This year the company also increased the percentage of commercial holdings in its portfolio from 19.5 percent to 29.4 percent across all markets.

Immoeast CEO Petrikovics is confident the company will continue to grow. "The prospects for the future are impeccable," he declared.