The giant Austrian investment fund Immoeast has announced it will shelve or cancel 54 real estate projects in Romania worth €2.4 billion, Act media the Romanian news agency reports.

Immoeast, one of the biggest investors in Romanian property, made the announcement in its company financial report covering the quarter between August 1 and October 31.

The report says the company's portfolio in Romania consists of 80 properties with an estimated total value of €1 billion, down from the 134 posted in the previous report, which were valued at the end of July 2008 at an estimated €3.44 billion.

The financial report says that the company is undergoing "consolidation instead of growth."
"The development of property projects has been stopped or will be postponed in cases where financing has not been secured or the financial feasibility is still uncertain," the report said.

Immoeast registered €1.86 billion net losses, before tax worth €299 million in the corresponding period a year earlier, the report revealed.

"Immoeast AG is currently experiencing the most difficult phase in its corporate history." the report added.

Robin Bowman