UPDATE 1-Immofinanz quits tender for BayernLB unit

Wed Feb 13, 2013 12:32pm EST

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VIENNA, Feb 13 (Reuters) - Austria's Immofinanz withdrew from the tender for the real-estate unit of German bank BayernLB, saying it could get in the way of its plans to list its residential unit.

"Under the given constellation, it is not possible for us to form a listed German-Austrian residential real estate corporation within an acceptable timeframe," Chief Executive Eduard Zehetner said in a statement on Wednesday.

Immofinanz said it would continue to pursue its strategy of strengthening its German residential portfolio through acquisitions and its own development projects.

The Austrian property group has said it is likely to list its Buwog residential property unit in 2014, after beefing up its Austrian portfolio with German assets, and plans to pay a special dividend when it does so.

Apart from Austria and Germany, Immofinanz has property in eastern Europe, where more than half its assets are, and Russia.

The sale of BayernLB's GBW, which is expected to fetch 2 billion to 2.5 billion euros ($2.7-3.4 billion), will likely be Germany's biggest property deal this year. ($1 = 0.7442 euros) (Reporting by Georgina Prodhan; Editing by Michael Shields)

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