Romania
The portfolio of CA Immo International in Romania comprises a total usable area (incl. car parking spaces) of 58,300 sqm and a market value of € 109 m. The properties there are the Opera Center 1 and 2 (acquired in 2003 and 2004 respectively) and the Bucharest Business Park, which was purchased in 2005. Section D of this property, with a usable area of just under 6,000 sqm, was completed in mid-2006. At the end of 2006 all the space in the portfolio was let.
Generally speaking, the strategy pursued by CA Immo International seeks to grow the portfolio. In view of a very attractive offer, however, the office on Charles de Gaulle-Square in Bucharest, which was developed in a 50% joint venture, was sold in mid-2006. The total investment cost of the 50% share of CA Immo was € 23 m; the selling price exceeded € 40 m.
CA Immo International regards project development as a means of leveraging yields. The creation of value added during the property‘s construction permanently augments the company‘s portfolio. The property on Charles de Gaulle-Square in Bucharest is a landmark in the cityscape and has won several awards. In view of the yield and the impact on the profitability of the portfolio as a whole, it was nonetheless decided to dispose of the property – in full compliance with the strategy of offering investors the best possible return on their investment.
Bulgaria
In May 2006 the Mladost 2 Europe Center office building was added to a portfolio that has contained a sister property, Mladost 1, since the beginning of 2003. This increased the useful area from 5,600 sqm to about 15,300 sqm. The market value of the two properties totals
€ 28.4 m. At the end of the year some 91% of the total space was let.
Slovenia
In Slovenia CA Immo International has held the Grand Media Hotel in the capital, Ljubljana, in its portfolio since 2005. The useful area is approx. 17,900 sqm and the property has a market value of about € 38 m.
Portfolio strategy for SEE countries
CA Immo International intends to build on its experience in the SEE region and systematically expand its portfolio there. With a balanced mix of property types in the capitals and regional centres, it is aiming to take advantage of the growing yield compression. This balance is to be achieved, above all, by attaching priority to logistics centres, which will broaden a focus that currently highlights office properties. Cities such as Belgrade and Sofia, which are situated on transit routes from Central to South East Europe, are thus eminently suitable for logistics properties. Diversification is also being pursued by stepping up the commitment in the retail segment outside the capitals.