Austrian property Immofinanz said on Tuesday it plans to spin off or sell its Russian business prior to the planned merger with CA Immo as those assets were characterised by different market dynamics and risk profiles.
It’s Russian assets have pushed Immofinanz into full-year net losses in the past two financial years due to writedowns and rent reductions that it was forced to offer tenants suffering under the weak rouble.
The group reported results of operations of 45.3 million euros ($50.6 million) for the first quarter of its abbreviated fiscal year compared with 46.9 million euros last year.
($1 = 0.8953 euros) (Reporting by Kirsti Knolle).
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Source: Reuters.com
