In the early months of the current business year, new acquisitions were negotiated in every region.
Purchases
A forward purchase agreement was concluded in respect of the Capital Square office building (Budapest), which is being constructed by
CA Immo International in a joint venture with a major European building company. The purchase price is € 71 m. The complex is to consist of about 30,500 sqm gross floor area for offices and a further 2,000 sqm for retail, catering and services. Construction work is to start in Q2 2007. The scheduled completion date is 2009.
Within the framework of the CA Immo New Europe property fund, a joint venture agreement has been signed with UBM, our Austrian partner, to develop the Poleczki Business Park in Warsaw. On a 14-hectare site near the airport and the planned Warsaw South bypass, a property complex for offices and commercial premises, including service facilities and a hotel, is to be constructed in the next few years. The relevant contract does not become legally effective until it has been formerly ratified by the Polish antitrust authority. The first phase envisages office and warehouse buildings with a gross floor area of some 50,000 sqm. The associated investment amount is about € 88 m.
In Serbia an agreement was concluded to give CA Immo International a share in a Belgrade office development project. Among other things, about 20,000 sqm of office space is being created. The total investment volume is approximately € 45 m.
Further joint venture agreements are currently the subject of negotiation. These include contracts to develop a retail portfolio in Moscow, a shopping mall and logistics park in Belgrade, and an office building in Timisoara (Romania), with a likely total investment volume of € 250 m. The agreements are expected to be concluded by the end of Q1 2007.
New Fund
The H1 hotel fund is a new investment product launched by CA Immo International for domestic and foreign institutional wholesale investors. For this purpose a strategic partnership has been formed with the UNIQA Group and Deloitte Austria. The common network that has been thus established is to be leveraged to the maximum extent. The fund is targeted at large-scale investors able to contribute more than € 5 m. The aim is to attract € 275 m of investors‘ capital. Given a 40% equity ratio, the fund volume is to total € 700 m. The fund has a fixed term of 7 years. The fund has the legal form of a stock corporation. CA Immo International and the UNIQA Group are to act as the equal-ranking lead investors (€ 70 m each) of the new hotel fund. The investment targets are hotel projects in Eastern and South East Europe as well as the CIS. Outline operating agreements for the hotels are being negotiated with international hotel chains.
Sale
In Q1 2007 CA Immo International successfully completed the sale of the Jungmannova Plaza in Prague, in which it held a 50% interest. Located at the heart of Czech Republic‘s capital, the building‘s development commenced in 2001. Its total area of 10,300 sqm was handed over to tenants in 2004. The company invested an aggregate amount of € 11 m in the property. The proceeds from the sale totalled
€ 23.7 m, which exceeds the investment by 115% and highlights the project‘s sustained growth pattern.