Immoeast will offer 277.9 million new shares from today until May 21, the Vienna-based company said today in a statement. Immoeast said the final price will be set after the offer and subscription period ends.
Immoeast is changing its focus from central Europe, where demand for real-estate is slowing, to Bulgaria and Romania -- the two countries which are benefiting from an economic expansion after they joined the European Union this year.
The company has a 6 billion euro investment plan to buy and develop real estate in the region. Immoeast said it will focus more on retail property, rather than offering office space. The share of projects planned in Ukraine and Russia will account for 25 percent of the investment plan, the company said.
Constantia Privatbank AG, Credit Suisse Group, Deutsche Bank AG, Morgan Stanley and Bank Austria Creditanstalt AG are managing the share sale. Erste Bank AG is also helping to manage the sale.
Shares of Immoeast were unchanged at 9:27 a.m. in Vienna. The company has a market value of 5.8 billion euros.