Warimpex Finanz- und Beteiligungs AG

Warimpex Q3 2015 results: - Seite 2

Success in transactions, completions, and developments Despite the consequences of the difficult conditions on the Russian market, Warimpex also has some successes to report with regard to both transactions and developments. At the end of September, the company sold its majority stake in the angelo and Liner hotels at Koltsovo International Airport in Ekaterinburg to a private investor. The withdrawal from Ekaterinburg should not be interpreted as a withdrawal from Russia - Russia will remain one of Warimpex's most important core markets, where the company is making good progress in the development of AIRPORTCITY St. Petersburg and still sees tremendous potential. The Zeppelin office building was just completed here at the end of June, and the tenants have already moved in. The renovated office tower at Erzsébet Office in Budapest was also handed over to the tenant recently. In Berlin, the sale of the andel's hotel closed at the beginning of September. The profit from this transaction was roughly EUR 10 million.

In terms of developments, planning is under way for two office development projects in the Polish city of Krakow: First, Warimpex is the owner of a development property next to the Chopin Hotel, which is to be the location of an office building with around 20,000 square metres of space. Second, an office building owned by Warimpex is to be demolished and replaced by a new office building, also with approximately 20,000 square metres of space. In ód, Warimpex purchased a property near the andel's hotel, where it plans to build a new office building with roughly 29,000 square metres of space.

Outlook "Although Russia's economic recovery is still on shaky ground according to estimates by the International Monetary Fund and is primarily dependent on geopolitical factors, there is light at the end of the tunnel, as IMF experts forecast minimal growth of 0.5 per cent for 2016. This outlook makes us quite optimistic for the coming year, because an easing of the situation will lead to impairment reversals. We aim to advance our current development projects in line with the prevailing conditions and to continue taking advantage of the positive transaction climate for prudent property sales in the future. We are also working continuously to boost the earnings from our hotel assets and to strengthen our financial base," concluded Franz Jurkowitsch, CEO of Warimpex.