Immoeast Postpones, Cancels EUR2.4B Proj In Romania

The company’s report stated Immoeast portfolio in Romania includes 80 properties, with an estimated value of around EUR1 billion.

Thus, the number of projects decreased by 54 compared with the data posted in the previous quarter report, from 134 to 80, but the report posted Thursday does not include the projects subject to delay or cancellation plans.

At the end of July, the market value of the 134 projects was estimated at EUR3.44 billion.

According to the press release, Immoeast delayed 29 projects and annulled another 51 on all the markets that it operates.

Immoeast has completed a radical change of course with its new management, which can be summarised as “consolidation instead of growth“, according to the financial report.

"The development of property projects has been stopped or will be postponed in cases where financing has not been secured or the financial feasibility is still uncertain," the report stated.

Immoeast also registered EUR1.86 billion net losses, from earnings before taxes worth EUR299 million in the corresponding period a year earlier, as the severe crisis on global financial and credit markets has triggered a massive liquidity crisis.

"Immoeast AG is currently experiencing the most difficult phase in its corporate history. The severe crisis on global financial and credit markets has triggered a massive liquidity crisis, whose underlying causes are only in part related to market developments – a significant part of the current difficulties is the result of management decisions made in 2007, which now have an added negative effect on liquidity,” the group’s financial report stated.