Strong foundation

Austrian developer Immoeast recently listed on the Warsaw Stock Exchange in grand style. Immoeast, the largest developer in the Central and Eastern European (CEE) region, set a new record for the WSE, taking in zł.10.7 billion from its debut. Its share price also noted a 4.5-percent increase on the day it entered the floor.

"We have chosen Poland because its capital market has very good prospects. Apart from that, 17 percent of all our investments are based in Poland and the time has come to give the Polish investors an opportunity to directly invest in Immoeast," the company's CEO, Karl Petricovics, told WBJ before the stock market debut. 

The money earned in the debut comes to only about half of the approximately R6 (zł.22.8) billion the company requires to realize its investment plans. That doesn't mean however, that the money it earns here is reserved for use in Poland, since Immoeast plans to invest R1.8 (zł.6.68) billion in Romania over the next two years. According to the company's strategy, R1 (zł.3.8) billion will be invested in Poland over the same period.

Analysts agree that the Immoeast offer is very attractive. "We are very excited about this debut and we are definitely looking forward to some new big foreign companies to be listed on the WSE soon," Krzysztof Radojewski of brokerage Dom Inwestycyjny Bre Banku says. Luxembourg-based Orco Property Group and Australia's Opal Property Developments are expected to debut by the end of the year. Also, Polish developers Pol-Aqua and JW Construction are also planning their debut on the WSE this year.