FRANKFURT, April 2 Austrian property group
Buwog, which is to be spun off from Immofinanz on
April 28, is planning to pay out up to two thirds of its
operating earnings to shareholders, its Chief Executive said.
"In the medium term we want to pay out 60 to 65 percent of
our recurring funds from operations (FFO) as a dividend," Daniel
Riedl told Reuters on Wednesday, without specifying the group's
Riedl added that Buwog wants to tap its cash flow to buy up
to 4,000 apartments per year, mainly in Germany.
In three to five years Buwog wants to have 75 percent of its
residential property in Germany, where it generates higher
margins than in Austria, which currently still accounts for 50
percent of the business.
"A relocation of our headquarters from Germany to Austria is
not on our agenda," Riedl said.
Immofinanz's shareholders last month approved a spin-off of
an initial 51 percent of Buwog to its shareholders to separate
its more conservative portfolio of German and Austria homes from
its eastern European commercial assets.
"Immofinanz will likely reduce its Buwog stake to zero
within the next two to three years", Riedl said.
(Reporting by Arno Schuetze and Kathrin Jones)