CA Immo International aims deliberately to exploit the earnings opportunities of the property markets in the CEE, SEE and CIS regions specifically for institutional investors. The company is consciously guided less by short-term trends, preferring instead to rely on medium to long-term developments in the defined core regions. As well as acquiring profitable properties (core investments), it is growing its project development business. CA Immo International invests exclusively in commercial properties (office, retail and logistics sectors) and follows clear strategic guidelines:
- Expansion in SEE and the CIS: CA Immo International is favourably positioned in several capitals of Central and Eastern Europe (CEE). However, the future emphasis of investments will be placed on the higher-earning markets of South Eastern Europe (SEE) and on the CIS (Russia and states of the former Soviet Union). With this more pronounced regional diversification, CA Immo International is backing the great future potential of these regions.
- Increased project development: CA Immo International has successfully built and let several office buildings in recent years in co-operation with local joint venture partners. Based on the substantial demand for commercial properties throughout the region, CA Immo International intends to step up its project development business unit. It established the CA Immo New Europe property fund in autumn 2006 for this purpose.
- Balanced portfolio mix: The portfolio strategy overarching all target markets focuses on a balanced mix of commercial uses. The current office share of 90% is to be reduced in favour of other types of use. Greater priority is to be granted to retail and logistics space so as to obtain a wellbalanced portfolio following different market cycles. Business hotels are being vigorously expanded, with CA Immo International co-operating with third-party investors in this sector.
- Establishing and making use of local resources in the target markets: As well as the investment management team in Vienna,
CA Immo International is represented in Warsaw, Budapest, Bucharest and Belgrade. Further offices will be set up as soon as the individual target markets reach a critical size. At present this appears to be a definite possibility in Moscow, the Russian capital.
- Greater net asset value through active portfolio management: As a rule CA Immo International only looks closely at properties with clear potential for lasting returns. Its portfolio policy raises the net asset value by optimising the tenant base and the duration of leases, extending existing premises and selectively selling properties at the most opportune time for generating a return.
- Generating additional income: CA Immo International has formed, and now manages, the CA Immo New Europe property fund. Further funds are being planned. In this area the strategy is to populate specialised property sectors with experienced co-investors and to generate regular additional income as a fund manager.
- Exploiting the leverage potential of the portfolio: The financing strategy for the portfolio generally envisages a debt-equity ratio of 60% to 40% at Group level The aim is to further increase the investment returns by means of an appropriate, diverse application of the portfolio‘s leverage potential.