Press Releases

IMMOFINANZ Group successfully closes a USD 100 million refinancing deal for two properties located in Moscow 08.09.2010

The refinancing efforts for the two properties were begun at the end of 2009 and successfully closed in August 2010, despite the extremely challenging situation in the international financial markets. IMMOFINANZ Group closed a USD 100 million refinancing deal with Nordea, one of the leading banks in the Scandinavian and Baltic region. Both shopping centres have excellent locations and are 100% occupied. Until now, both properties were entirely financed with equity. The two properties have formed part of the IMMOFINANZ Group’s property portfolio since mid-2006, and were the first investments made by the IMMOFINANZ Group in Moscow. With a combined footfall of more than one million visitors per month, the two shopping centres Golden Babylon 1 (Otradnoe district) comprising 25,370 sqm and Golden Babylon 2 (Yasenevo district) comprising 9,049 sqm of leasable area, are both among the retail properties with the highest turnover figures in Moscow. Some of the largest tenants are Russian top brands such as Perekrestok (X5 group), L`Etoile, O`Stin, Centro and Luxor Cinemas. Thanks to the attractiveness of both properties, IMMOFINANZ Group has been able to achieve a high occupancy rate and a stable rent level over the past several years.    Shopping Centres are the Strongest Asset Class
IMMOFINANZ Group already owns four shopping centres in Moscow and is one of the most important investors in the retail property market in the Russian capital. Only a few months ago, the shopping centre Golden Babylon Rostokino, one of the largest shopping centres in Europe with 170,000 sqm of leasable area and more than 5,200 parking spaces, was completed and put into operation. Full occupancy of Golden Babylon Rostokino is expected by end of the year. The fourth property, named "5th Avenue", comprises a leasable area of 21,150 sqm and, with close to full occupancy levels, is also among the best performing shopping centres in Moscow. Dr. Eduard Zehetner, CEO of IMMOFINANZ Group: "In light of the recently completed restructuring process of the group and despite a still difficult economic environment, we are delighted that we successfully closed this refinancing deal in our operational core business. The funds raised can be used to invest in further business development”.

Michael Wurzinger resigns from the IMMOFINANZ Executive Board 31.08.2010

Michael Wurzinger, member of the Executive Board of IMMOFINANZ AG, has announced his intention not to extend his contract and will resign as of 31 August 2010. He will be available to assist the company on a consultancy basis until his mandate expires in 2011.

As a member of the IMMOFINANZ Executive Board, Mr. Wurzinger has been responsible for asset and investment management as well as the development of commercial real estate in Austria, Western Europe and the USA. The rapid and consistent restructuring of this area of business under Mr. Wurzinger's management permitted extensive sales of real estate and investments at the height of the economic crisis in 2008 and 2009, which generated revenues of approximately EUR 700 million and thereby made a decisive contribution to the survival and successful financial restructuring of the IMMOFINANZ Group.

"My activities on behalf of IMMOFINANZ gave me an opportunity to guide the company during both the development phase and the restructuring phase. As is demonstrated by the outstanding results recorded for the 2009/2010 financial year, the restructuring phase has been successfully completed and the turnaround accomplished. I have known for quite a while that I would not extend my contract, and this is the ideal time for me to seek new challenges outside the IMMOFINANZ Group,“ commented Mr. Wurzinger.

Michael Wurzinger, 39 years old, is a member of the Royal Institution of Chartered Surveyors (RICS) and has worked for the IMMOFINANZ Group for 13 years. He was appointed to the Executive Board in July 2008. The Supervisory Board and the remaining Executive Board members – Eduard Zehetner (Chairman), Daniel Riedl and Manfred Wiltschnigg – have expressed their thanks to Mr. Wurzinger for his long-standing service to IMMOFINANZ and for his contribution to the Group's positive outlook for the future.

Preliminary results for the 2009/10 financial year (1 May 2009 to 30 April 2010) 17.08.2010

• Revenues:   EUR 719.2 million (2008/09: EUR 736.2 million)
• EBITDA:       EUR 393.6 million (2008/09: EUR 310.5 million)
• EBIT:          EUR 187.8 million (2008/09: EUR -2,071.3 million)
• EBT:           EUR 208.3 million (2008/09: EUR -3,403.4 million)
• Net profit:  EUR 195.6 million (2008/09: EUR -3,051.1 million)

The financial year of the IMMOFINANZ Group ending on 30 April 2010 was characterised by an extensive restructuring process that culminated in the merger of IMMOFINANZ AG and IMMOEAST AG and ends with the implementation of the agreement reached with Constantia Packaging B.V. in May 2010. The IMMOFINANZ Group – whose focus is now placed on the core markets of Austria, Germany, Poland, Romania, Russia, Slovakia, Czech Republic and Hungary – followed an extremely negative crisis year in 2008/09 with a successful turnaround and generated solid positive earnings in 2009/10. Earnings indicators improved significantly over the prior year and remain on a sustainable upward trend.

Revenues and EBITDA
Even though revenues fell slightly from EUR 736.2 million in the prior year to EUR 719.2 million for 2009/10, results of operations (EBITDA) rose substantially by approx. 27% from EUR 310.5 million to EUR 393.6 million. The decrease in revenues reflects a year-on-year decline in rental income and lower income from operating costs charged to tenants, which resulted above all from the sale of properties. However, a significant reduction in overheads from EUR 235.5 million to EUR 114.0 million (-52%) supported an improvement in EBITDA.

Valuation and financial results
Both valuation results and financial results improved considerably in comparison with the previous year. In spite of this development, valuation results remained negative at EUR -205.9 million for 2009/10 (2008/09: EUR -2,381.7 million) although EUR 234.2 million of foreign exchange-adjusted revaluations were recognised during the reporting year. The negative valuation results were caused by EUR -254.4 million of non-cash foreign exchange effects outside the Group’s influence as well as impairment charges of EUR -278.3 million.

Financial results, which amounted to EUR -1,332.2 million in 2008/09, turned positive in the reporting year and totalled EUR 20.5 million.

Quarterly results
Primarily due to lower sales of properties EBITDA of the forth quarter of the business year 2009/10 decreased by EUR 20.2 million to EUR 88.5 million compared to the previous year. Due to goodwill impairment charges in connection with the investment in the shopping centre Golden Babylon Rostokino, EBIT turned negative (EUR -58.9 Mio.). Based on a deferred tax income of EUR 32.4 million, the net loss for the period amounts to EUR -25.5 million. IMMOFINANZ Group expects to represent clearly positive results for the first quarter of the current business year in September.

Net Asset Value
The Net Asset Value (NAV) per share amounts to EUR 5.04 as of 30 April 2010. Con-sidering the treasury shares, which IMMOFINANZ Group will take over from Constantia Packaging B.V., NAV per share equals EUR 5.19. Taking into account the dilutive ef-fect of the shares underlying the convertible bond 2011, the NAV per share amounts to EUR 4.90.

55 million treasury shares
On 13 August 2010 the IMMOFINANZ Group announced that it will take over 55 million IMMOFINANZ shares as treasury stock. These shares are currently held by subsidiaries of Constantia Packaging B.V. and, based on the agreement with Constantia Packaging B.V., the proceeds from their sale would have been turned over to the IMMOFINANZ Group. The direct transfer of these shares will be NAV accretive and also facilitate future refinancing.

Outlook
The restructuring of the IMMOFINANZ Group has been largely concluded, and plans for 2010/11 consequently call for a focus on the optimisation of the property portfolio, the completion and selective reactivation of development projects, and the sale of as-sets that are not part of the core business of the IMMOFINANZ Group.
 
The capital structure and liquidity of the IMMOFINANZ Group are stable. Since the IMMOFINANZ Group will be confronted with the possible maturity of EUR 866.6 million in convertible bonds during 2012, refinancing options for the 2014 and 2017 convertible bonds are currently under evaluation. This refinancing, which is one of the prerequisites for the planned payment of a dividend for the 2011/12 financial year, should be realised within the next three quarters.

The annual report of the IMMOFINANZ Group for the 2009/10 financial year will be published at the latest on 31 August 2010 under www.immofinanz.com.