Immofinanz AG (stylized as IMMOFINANZ) is a commercial real-estate company based in Vienna, Austria. The company focuses its activities on the retail and office segments and operates in the markets of Austria, Germany, Czech Republic, Slovakia, Hungary, Romania, Poland, and the Adriatic region. The core business includes the management and development of properties. As of December 31, 2022, the managed real estate assets amount to approximately 8.4 billion euros, which is distributed across 627 properties.[8]
The company is listed on the Vienna and Warsaw stock exchanges. 'Immo' is short for Immobilien, German for real estate.
History
In 1990, Constantia Privatbank and Bankhaus Schoeller & Co founded the company C&S Immobilien Anlagen AG, which was subsequently listed on the stock exchange in 1991. After Bankhaus Schoeller's withdrawal in 1994, the company was renamed Immofinanz Immobilien Anlagen AG.[9][10][11]
In 1997, the company acquired the Business Park Vienna,[9] where the Vienna Twin Tower was constructed.
In 2000, Immofinanz took over all shares of Wipark Garagen AG, and in 2001, they acquired the City Tower Vienna and apartments in Houston.[12]
The regional segment Immoeast was established, marking the first foreign investment in Hungary.[11] In December 2003, Immoeast Immobilien Anlagen AG went public.
In the fall of 2004, the company acquired BUWOG, which included around 20,000 residential units, and a majority stake in ESG Villach.[13][12]
During the 2004/2005 fiscal year, Immofinanz entered the markets of Romania, Russia, and Slovakia, while ending its engagement in the US, which started in 2001.[11]
In 2005/2006, Immofinanz acquired a portfolio of 440 properties in Italy, which is fully leased to the Italian state.[14]
In June 2008, the company purchased the real estate division of Constantia Privatbank, with 40% acquired directly and 60% through its subsidiary, Immoeast, leading to the internalization of the company's management.[14]
During the 2008 financial crisis, Immofinanz experienced a significant decline in its market capitalization, losing over 95% of its value, and recorded a pre-tax loss of approximately 2.65 billion Euros.[15] The company faced a liquidity requirement of nearly 500 million Euros in September 2008, with uncertain financing.[16] In October of the same year, Karl Petrikovics was replaced as CEO by Thomas Kleibl.[17] Legal proceedings were initiated against former CEO Karl Petrikovics, and he was eventually sentenced to six years in prison.The chairman of the supervisory board, Schwager, was sentenced to four and a half years in prison as well.[18]
In 2009, Immoaustria was sold to Immoeast, and Wipark Garagen AG was sold to a subsidiary of Wiener Stadtwerke in April of the same year.[19]
On April 29, 2010, Immofinanz and Immoeast merged to form Immofinanz Group.[20][21]
According to Forbes Magazine's ranking, Immofinanz is one of the 11 Austrian companies among the top 2000 (rank 1798).[22]
In April 2014, Immofinanz spun off 51% of its subsidiary BUWOG, and in 2018, the German residential company Vonovia acquired BUWOG.[23][24]
In May 2015, Oliver Schumy became the new CEO of Immofinanz, and under his leadership, the company focused on the office and retail asset classes. All historical investor lawsuits were settled out of court.[25]
In August 2016, Immofinanz acquired approximately 26% of CA Immobilien Anlagen AG and intended to merge it with Immofinanz, creating one of the largest commercial real estate companies in Continental Europe. However, the merger plan was abandoned, and in July 2018, the entire stake was sold.[26][27]
In December 2016, the company decided to divest its Russian retail portfolio, leading to Immofinanz's exit from the Russian market in 2017. In 2018, Immofinanz acquired approximately 29% of S Immo AG.[28]
In March 2020, CEO Oliver Schumy stepped down as a board member, and in April 2020, Ronny Pecik was appointed as a board member and CEO as of the 4th May for a three-year term.[29]
In June 2020, Immofinanz conducted a capital increase of around 356 million Euros, citing it as an investment for the future and a "strengthening of the capital base in the context of the Corona pandemic." However, the Interessensverband für Anleger (IVA) criticized the capital increase as a "hasty night-time action." The shares were allegedly issued well below their book value, benefiting institutional investors and Immofinanz CEO Ronny Pecik at the expense of small investors.[30][31]
In January 2022, CPI Property Group (CPIPG) made a preemptive mandatory offer to the shareholders and holders of the convertible bond 2017-2024 of IMMOFINANZ. The result of the acceptance period (January 12 to February 23, 2022) was announced on February 24. According to the announcement, CPIPG held 55.07% of IMMOFINANZ, thereby gaining a controlling stake. The statutory three-month additional acceptance period for the offer ended on May 30, 2022. According to the ownership disclosure on May 31, CPIPG has since held 76.9% of IMMOFINANZ.[33][34]
As of May 1, 2022, Radka Doehring was appointed as a member of the board and took over the responsibilities of Dietmar Reindl and Stefan Schönauer, who exited the board on June 8, 2022. On June 16, 2023, Pavel Měchura was appointed as a member of the board. Therefore, the IMMOFINANZ board consists of Radka Doehring and Pavel Měchura.[35][36][37]
In 2018, IMMOFINANZ acquired around 29% of S Immo AG. Subsequently, in December 2022, IMMOFINANZ increased its stake in S Immo by acquiring 17,305,012 additional S Immo shares from CPIPG, thereby obtaining a majority stake of 50% plus one share in S Immo. As a result, the assets and liabilities of S Immo were consolidated into IMMOFINANZ's financial statements from December 31, 2022, and the profit and loss positions were incorporated from March 31, 2023.
In 2018, IMMOFINANZ acquired around 29% of S Immo AG. Subsequently, in December 2022, IMMOFINANZ increased its stake in S Immo by acquiring 17,305,012 additional S Immo shares from CPIPG, thereby obtaining a majority stake of 50% plus one share in S Immo. As a result, the assets and liabilities of S Immo were consolidated into IMMOFINANZ's financial statements from December 31, 2022, and the profit and loss positions were incorporated from March 31, 2023.[38][39]
Brands of Immofinanz
Immofinanz operates the following brands:
Vivo! - Used since 2005 for shopping centers in cities with a catchment area of at least 200,000 inhabitants.[40] As of December 31, 20220, there were 10 locations in four countries with a total rentable area of approximately 312,400 m2.[41]
Stop Shop - Used since 2014 for retail parks in Central and Eastern Europe with a catchment area of 30,000 to 150,000 inhabitants.[11] Stop Shops offer a rentable area of approximately 8,000 to 15,000 m2 per location.As of December 31, 20220, there were 13493 locations in nineteen countries with a total rentable area of approximately 951,689,000 m2.[42]
myhive - Used since 2016 for office buildings in the capital cities of Central and Eastern Europe. As of December 31, 20220, there were over 2127 locations with a total rentable area of approximately 592,491,000 m2.[43]
BUWOG affair
The BUWOG affair refers to the suspicion that the former CEO of Immofinanz, Karl Petrikovics, obtained unlawfully information about the highest bid of competitors during the purchase of 60,000 federal apartments in 2004. It is alleged that he did so by paying a commission of 9.6 million Euros to the PR consultant Peter Hochegger and the lobbyist and former FPÖ politician Walter Meischberger.[44]
The Vienna Public Prosecutor's Office has initiated several proceedings in the case for suspected breach of trust, including against the former Minister of Finance, Karl-Heinz Grasser.
On July 21, 2016, the Economic and Corruption Prosecutor's Office announced that it would bring charges against Karl-Heinz Grasser, Peter Hochegger, Walter Meischberger, Ernst Plech, and twelve other individuals in the BUWOG and Terminal Tower cases.The alleged total damage amounts to ten million Euros, which carries a penalty of up to ten years in prison.[45]
In December 2020, the verdict was issued: Former Finance Minister Karl Heinz Grasser was sentenced to eight years in prison. The co-defendants Walter Meischberger and Peter Hochegger were also found guilty. All verdicts are not final, as the lawyers have lodged appeals.[46][47]
