Immofinanz Postpones Buwog’s Going Public

Published: July 24, 2013; 17:30 · (Vindobona)

Austrian real estate company Immofinanz has put off the initial public offering of its affiliate Buwog. The reason for the postponement is the unstable market environment. The new date for an IPO is 2014.

Immofinanz Postpones Buwog’s Going Public / Picture: © Immofinanz

Because of market uncertainties, Immofinanz postpones the going public of its residential properties affiliate Buwog at the stock exchange in Frankfurt, Germany, which was planned in November. Spokeswoman for Immofinanz Bettina Schragl confirmed that an IPO in 2013 was unlikely and 2014 was now focused on after Bloomberg reported about the postponement on Wednesday. The rescheduling of the IPO can be traced back to the rather bumpy IPO of German Annington and the problems with the placements of shareholdings of housing company Gagfah.

CEO of Immofinanz Eduard Zehetner told Bloomberg that the Austrian real estate enterprise did not want to sell in such an environment. Moreover, he said he did not expect any dramatic improvements in 2013. In March, Zehetner has announced the probability of Buwog’s IPO in November was more than 50 percent.

The selling of more than half of the stakes of the affiliate iss supposed to provide Immofinanz with around € 700m, according to earlier statements. However, the enterprise kept on emphasizing that this step would depend on the market environment and the success of the acquisitions on the German residential property market. Furthermore, Immofinanz has announced that going public was only one of several options. Alternatives are a sale or a spin-off of Buwog.