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UPDATE 1-Immofinanz sells 200 mln euro Munich estate

Published 09/15/2009, 04:42 AM
Updated 09/15/2009, 04:45 AM

* Sells Munich's Lenbachgaerten to Germany's AM alpha

* 65,000 sqm: 2 office buildings, luxury hotel

* Shares up 8.2 percent

(Adds detail, background)

VIENNA, Sept 15 (Reuters) - Austrian developer Immofinanz said on Tuesday it sold two office buildings and a luxury hotel in Munich to German family office AM alpha to strengthen its cash flow and balance sheet.

Its shares were up 8.2 percent at 2.78 euros at 0840 GMT.

The deal was based on a property valuation of 200 million euros ($293 million) for the estate in Munich's Lenbachgaerten, which Immofinanz acquired in 2006, it said in a statement.

"The transaction demonstrates that Immofinanz operates with valuable assets and is also able to sell properties in a difficult market," chief executive Eduard Zehetner said.

Immofinanz suffered a 2 billion euro loss last year, mainly because of asset writedowns at its Immoeast subsidiary, one of the biggest developers in emerging Europe.

It has sold assets and slashed its development pipeline to avert a liquidity squeeze which it has said was life-threating earlier this year but is now averted. (Reporting by Boris Groendahl; Editing by Dan Lalor) ($1 = 0.6833 euro)

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