July the 27th, 2023 – Primo Real Estate has recorded impressive net profits throughout the first six months of 2023, and they’re continuing to hunt for investment projects in the commercial real estate market across Croatia.
As Suzana Varosanec/Poslovni Dnevnik writes, things have been going very well following recapitalisation process of Primo Real Estate, which is owned by AZ pension funds and managed by Allianz ZB, a new entity on the commercial real estate management market. It recorded net profits of EUR 1.18 million during the first six months of this year. This is the result of the generation of rental income, according to the Group’s unaudited financial results for the half-year period which ended on June the 30th, 2023.
New investment projects on the commercial real estate market
According to an announcement made by Primo Real Estate on the Zagreb Stock Exchange regarding the continuation of its activities in the goals for future development. The Group is continuously looking for new and attractive projects across the Republic of Croatia for investment in the commercial real estate market.
“In accordance with the business plans and the strategy of further business development in the future, the Group will develop its business through further investments in the commercial real estate sector. Investments may include office buildings, logistics and shopping centres with the aim of generating income on the basis of long-term leases. The attractiveness of each project depends on the level of yield and the level of risk assessed for each project,” Primo Real Estate said in its unaudited consolidated interim management report.
Founded only in 2020
The Primo Real Estate Group was founded amid the global coronavirus pandemic, more precisely back in September 2020. The listing of the company’s shares on the Zagreb Stock Exchange was carried out in June 2021, and in August 2022, they signed an agreement on the purchase and sale of business shares, which saw them take over the company Imobilia Tehno Tri (headquartered in Rugvica). After undergoing a name change, it continued to operate as Nekretnine (Real Estate) Alfa Primo. This acquisition took over a company that manages its own commercial real estate with a total area of approximately 15,000 m2 at three locations in Zagreb, and whose portfolio includes two office buildings and one property with storage and office space.
Continued development for the Group
“The acquisition is a further step in the development of the Primo Real Estate Group, aligned with the business strategy, which significantly increases the number of commercial properties in the portfolio. After the first purchase of the Sv. Helena logistics and distribution centre, the Group has continued to invested primarily in office business premises. This diversifies the structure of the real estate under our management”, stated the report signed by the director of Primo Real Estate, Saša Novosel.