Coffee with Craig Show – daily CRE news covering the CEE region – Friday, April 29 with Winston Norman – Editor and Chief of EuropaProperty.com.
S IMMO RECORDS BEST ANNUAL PROFIT IN THE COMPANY’S HISTORY
Bruno Ettenauer, CEO of S IMMO, commented: “Despite the challenges presented in 2021 above all by the takeover offer from IMMOFINANZ and the continued pandemic, our multi-asset approach and focus on holding properties over longer periods proved their worth, and our total return saw double-digit growth. We intend to continue on this successful course in 2022.”
The rental income for the 2021 financial year totalled €131.3 million and was 6.5 percent higher than the prior-year level of €123.3 million. This increase in times of crisis can be attributed to property acquisitions, prudent management of the portfolio properties, and the high quality of the portfolio.
From a shareholder perspective, the past year was altogether turbulent with the takeover offer submitted by IMMOFINANZ and then rescinded at the end of June. IMMOFINANZ was acquired by CPI Property Group at the beginning of 2022, the latter now holding 42.55 percent of the S IMMO shares.
CPI Property Group announced its intention to submit a mandatory takeover offer to the shareholders of S IMMO. The Management Board and Supervisory Board of S IMMO AG will review the request for the convening of an extraordinary shareholders’ meeting and decide on further steps.
Herwig Teufelsdorfer, CIO of S IMMO AG, noted: “Our investment strategy not only increases the quality of our portfolio but also its earnings generation and sustainability.”
Friedrich Wachernig, COO of S IMMO, added: “The results for the reporting period are clear evidence of how robust and successful our business model is even in times of crisis, and reinforces our confidence that S IMMO continues to be well-positioned.”
HEIMSTADEN BOSTAD ACQUIRES RESIDENTIAL PROJECT IN WARSAW
Heimstaden is buying the residential project Aurora in Warsaw from the developer Dantex. The transaction is structured as a turnkey forward funded acquisition, where Heimstaden does not carry any direct development risk. Completion is scheduled for mid-2024.
The project is part of successful larger housing development in the Włochy district, 10-15 minutes outside the centre of Warsaw.
“The Polish economy and housing market present strong investment fundamentals for our residential product and we believe it will continue in the years to come,” said Stanislav Kubáček, Managing Director of Heimstaden’s Investment Team for Eastern Europe.
Heimstaden Bostad’s footprint consists of 4,400 apartments in Poland, currently being developed by local developers for Heimstaden on a turnkey basis. The first 282 homes will be completed and offered to the Polish market by the end of the year.
SIRIN DEVELOPMENT WILL DEVELOP 63,000 SQM OF WAREHOUSE SPACE IN KAUNAS FEZ
Sirin Development will build 63,000 sqm of warehouse facilities on 12 hectares in the Kaunas Free Economic Zone. The planned investment in the project is €41 million.
The company plans to do the construction work in several phases. In the first phase, it intends to build 20,000 sqm of warehousing by the third quarter of 2023, and in the second, more than 43,000 sqm of warehouse space, with a completion forecast by the end of 2025.
Sirin Development’s CEO, Laurynas Kuzavas, says, “The plan is for our company’s investments in Class A+ warehouses in the district of Kaunas to reach €100 million by the end of 2026, with a total of more than 150,000 sqm of warehouse facilities built and in development.”
He says demand in the Lithuanian market for modern and sustainable warehouses is being boosted by businesses with a domestic-market focus.
APSYS STRENGTHENS ITS EQUITY BASE TO FINANCE GROWTH IN FRANCE AND POLAND
Apsys announced that funds managed by Apollo, as part of its European Principal Finance business, have agreed to issue €150 million.
Following the issue, Apsys’ equity exceeds €875 million and its cash position exceeds €280 million. Proceeds of this issue will be used to finance Apsys’ growth in France and Poland and to reduce leverage in line with the Group’s strategy of developing its portfolio of iconic assets with its development pipeline while maintaining a solid financial profile.
“I am delighted that Apollo, one of the world’s leading fund managers, has decided to invest significantly in Apsys. This transaction demonstrates the confidence placed in Apsys and its teams, the quality of its portfolio of assets and projects under development, and its expertise in creating high value-added assets,” said Maurice Bansay, Founding President of Apsys.
“We are excited to support Apsys, which is known for the strength of its management operations, asset quality and expertise in the sector,” said Ivo Kolev, Apollo Partner.
MARACANA EXPANDS IN MLP BUCHAREST WEST
Maracana, a European logistics company, has expanded its warehouse capacity in MLP Bucharest West. The logistics provider has signed a lease to expand its warehouse capacity to over 10,000 sqm in the park.
“We are pleased that we are able to extend our cooperation with MLP Group and to strengthen our partnership underpinned by our shared values and vision,” said Eugen Supuran, Managing Director, Maracana.
“Our project in Romania was developed on a speculative basis, which enabled us to quickly meet the requirements of our client, who needed ready-to-occupy warehouse space,” said Agnieszka Góźdź, Sales Director, MLP Group.
MLP Bucharest West is a logistics and manufacturing park with an area of 99,000 sqm at full build-out. It is located in Romania’s key region, only 15 km from the capital city, and has direct access to the city’s ring road and the A1 motorway.
