Immoeast informed about secondary public offering in the volume of EUR 3bn, which starts today and lasts until 21 May 2007. The transaction should add 277.9m new shares to 555.9m already outstanding shares. The maximum subscription price is set at EUR 12 per share. At the event of capital increase Immoeast shares will be listed also on the Warsaw Stock Exchange. New shares will start to be traded on 24 May 2007 in Vienna and 25 May 2007 in Warsaw. Immoeast investment programme for this capital increase is already specified and totals a volume of EUR 6bn. It should lead to transformations in the portfolio structure, with development project share increase to two thirds. Retail should gain in significance on the expense of offices and main interest should be shift from CEE to SEE, with Romania as a core market. Russian and Ukraininan properties should gain 25% in this investment programme.
Our view: This is second Immoeast capital increase in past 12 months as the investment programme of EUR 5.3bn related to EUR 2.75bn capital increase last June has been finalized ahead of schedule. Although the speculations about Immoeast capital increase has been on the market for some time as company’s debt to equity fell below targeted 50:50 we could still see some short-time