The management contract with Constantia Privatbank provides IMMOFINANZ with first-class expertise as well as extensive management and administrative capabilities, which allow for the smooth organisation of the company’s steady and strong growth.

EXTENSIVE CAPACITY, EXTENSIVE KNOW-HOW

The direction of business and the management of IMMOFINANZ have been handled by Constantia Privatbank since the founding of the company in 1990. The basis for this cooperation is formed by a long-term management contract, which covers the transfer of all management responsibilities and administrative duties. The services performed by Constantia Privatbank are covered by a flat-rate fee, which equals 1% of new investments plus 0.6% of the portfolio objects at the beginning of the year. This latter component is linked to the consumer price index. The management fee for the BUWOG, ESG and WIPARK subsidiaries equals 0.25% of the property value. That makes the management fee significantly lower than, for example, the administrative costs charged by a property fund. It not only covers all personnel expenses – IMMOFINANZ has no employees (with the exception of its subsidiaries) – but also eliminates other major expenses like rent, IT and office space. However, this is only one benefit of the management contract. Even more important is the fact that it provides IMMOFINANZ with a large team of top notch experts that represents a key competitive advantage, both in national and international comparison.

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