From its top market, Romania has now become the most difficult core market for Austrian investment fund Immoeast, the fund has revealed in its most recent financial report. Immoeast’s portfolio in Romania was worth EUR 976 million, while its revenues from the country amounted to EUR 55.2 million in the first three quarters of the 2009/2010 business year. At the moment, the fund’s portfolio in Romania covers the bulk of its SEE portfolio and revenues from Romania were similar to those from Poland.
“Romania is still Immoeast’s most difficult core market. The surplus of office space in the capital city of Bucharest will expand further due to an increase in property completions in 2010; accordingly, rents remain under pressure and the already high vacancy rates will continue to rise,” predicts Immoeast.
For retail real estate the situation is just as problematic. Numerous shopping centers are battling extremely high vacancy rates, particularly in the regional centers. Nor is an end to the decline in purchasing power anticipated, the report goes on. “Yields are considerably higher than in Central European countries. Even for prime properties in the central business district of Bucharest, they are above 9.5 percent,” said Immoeast.
The fund posted EUR 481 million in revenues, up 90 percent on the same period of the previous business year and an EBITDA of EUR 246 million, which was a rise of 178 percent. “This strong increase is attributed to the acquisition of Immoaustria,” said the fund.