Corporate | 26 June 2007 08:30
MAGNAT Real Estate Opportunities GmbH & Co. KGaA / Miscellaneous/Miscellaneous
Release of a Corporate News, transmitted by DGAP - a company of EquityStory
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MAGNAT Real Estate Opportunities GmbH & Co. KGaA has made its first
investment in Bulgaria. MAGNAT, through a local project company 75% owned
by MAGNAT, purchased a site for residential development in Pancharevo, a
suburb of Sofia. On a 7.775 sqm plot of land, some 100 upscale apartments
with 10.000 sqm of sellable floor space will be built. Total investment
volume will be approximately 10 million Euros.
The project location is very good, well-connected and only 18 kilometers
south of the centre of Sofia, in a parkland-style neighborhood next to the
American school. The demand on the residential market in Sofia for such
upscale apartments is high, vacancies are practically zero. Due to the
imbalanced supply-demand, sales of apartments are possible already off-plan
or in early stages of development. This market situation allows for high
double-digit returns on equity.
MAGNAT-CEO Jan O. Ruester comments: 'With this project, we have entered the
Bulgarian market. Negotiations for several other projects in our target
countries in Eastern Europe are well under way; we expect signings in the
near future. One priority continues to be the residential segment, where we
see significant potential. '
+++ About MAGNAT
MAGNAT is a real estate company with a focus on real estate development in
Eastern European countries. Seed investors were the Silvia Quandt family,
the two financial investors Themis Equity Partners and Heliad Equity
Partners, and the management.
In the course of two capital increases in 2006 and a further capital
increase in spring of 2007, a number of institutional investors, amongst
them Swiss Real Estate, invested in MAGNAT.
With its opportunistic strategy, MAGNAT capitalizes on inefficiencies in
real estate markets. In contrast to traditional investment strategies,
MAGNAT not only benefits from rental income, but also and primarily from
attractive development yields and the comparable short time of capital
employed in its projects. All projects must meet an above-average yield
requirement.
Management focuses on real estate markets with interesting development
cycles, i.e. undervalued markets ('anti-cyclical investing') and markets
with high economic growth rates ('growth markets'). The regional focus is
currently on Central, Eastern and South-Eastern Europe, supplemented by
opportunistic, special situations in the German home market.
Contact
MAGNAT Real Estate Opportunities GmbH & Co. KGaA
Grüneburgweg 18
60322 Frankfurt am Main
Investor Relations
Jan O. Rüster, CEO
Tel.: +49 (0) 69 719 189 79 0
E-Mail: jan.ruester@magnat-reop.com
Press Relations
edicto GmbH
Axel Mühlhaus / Werner Rüppel
Tel.: +49 (0) 69 905 50 55 2
E-Mail: amuehlhaus@edicto.de
DGAP 26.06.2007
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