Immoeast starts selling up to 333.5m shares and plans to raise EUR 2.9bn to finance expansion in the region of Eastern Europe. Part of the new issue will be subscribed by Immofinanz, its mother company, which plans to keep 51% stake in Immoeast. Immofinanz will use EUR 923m from its last month SPO. The book-building ends on June 8.
Lion’s share of raised proceeds EUR 1.3bn should be spend in Czech Republic, EUR 580m to be spend in Hungary and EUR 500m both in Ukraine and Romania. According to Immoeast CEO, company plans diversification of it portfolio, thus will aim 46% of raised money into commercial space and 33% into office space. Given recent yield compression in the CE3 region and increased competition it will be very challenging for Immoeast to pick satisfactory project for its investors.