AMSTERDAM--(BUSINESS WIRE)--Auragenix NV (www.auragenix.com) , a Dutch based management and investment firm, reported today that the Company is gearing for a substantial increase in its Central European based real estate portfolio over the next 12-18 months as a result of improving market conditions coupled with substantial cash reserves moving off the sidelines into the CEE marketplace.
Says Michael Wexler, the Company’s Co-Managing Director, “Conditions are ripe this year for a major expansion in our Poland based portfolio of small to mid sized commercial retail properties. At the moment, we plan to scale up by building out our holdings of supermarket properties that carry household names in Poland, such as BEIDRONKA, TESCO and ALMA. We anticipate that, in the aggregate, we will close and have commitments in place on approximately 30-35 supermarket properties throughout the country by mid 2012”. Explains Mr. Wexler, “We like to own these properties because they provide us with a strong covenant and typically throw off yields in the range of 8-10 %.”.
“In addition, by the third quarter 2011, we plan to roll out a program for the CEE region of Auragen branded small to mid sized strip malls and retail parks” says Wexler. “We are currently reviewing a number of opportunities in Poland and may decide to firm up one or more acquisitions in this segment somewhat earlier in the year. The way we see it, yields will drop throughout 2011 as a substantial amount of cash is targeting the commercial property market in Poland and prices are definitely firming. “
At the same time, the Company reports that it will expand its current funding program for acquisition activity committed and programmed through Dec 31, by Euro 20-25 million. In late December 2010 the company received cash and signed commitments for Euro 2 million from private investors. It is anticipated that completion of its current round of financing, coupled with the company’s bank lending arrangements, will be sufficient to add approximately Euro 100 million in commercial retail properties to the company’s Auragen Real Estate portfolio by mid next year..
Auragenix NV is a publicly traded Dutch based management and investment firm headquartered in Amsterdam. The Company’s wholly owned real estate acquisition and property management firm, Auragen Real Estate Sp. Z o.o. is situated in Warsaw, Poland.
Shares of Auragenix NV are listed on the Open Market segment of the Frankfurt Exchange. A public offering of Auragenix shares was not made in connection with their inclusion on the Open Market Frankfurt.