What effect will the acquisition have on IMMOFINANZ's earnings?
IMMOFINANZ's earnings will rise strongly as a result of acquiring Constantia Privatbank's real estate division due to income received by IMMOFINANZ (or its future subsidiary I&I) from management contracts and profits from the other business areas acquired from Constantia Privatbank.
In addition to the extensive strategic opportunities for the IMMOFINANZ Group resulting from the acquisition of Constantia Privatbank's real estate activities, the transaction will also lead to direct and significant improvement in earning power and key corporate figures.
Effect of the transaction on key corporate figures of the IMMOFINANZ Group (2009/10)
IMMOFINANZ-Group
Increase in EBITDA
€ 80 m – € 100 m
IMMOEAST
IMMOFINANZ
Increase in earnings / share
€ 0.06 – € 0.07
€ 0.11 – € 0.14
Increase in cash flow / share
€ 0.10 – € 0.12
€ 0.17 – € 0.22
The positive effects forecast by the management for EBITDA, earnings / share, cash flow /share and other key corporate figures are a result of the management fees that will be retained by IMMOFINANZ and IMMOEAST in future, earnings from other asset management activities (e.g. open-ended and closed-ended real estate funds) as well as profits from subsidiaries CPB Immobilientreuhand, IMV, CPB Immobilien KAG, Constantia Immobilien Development and CREDO.
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