Immoeast Slashing Development Plans

VIENNA — Vienna-based emerging European property firm Immoeast said Friday that it was cutting its 4.4 billion euro ($6.4 billion) development pipeline by at least 2 billion euros to secure the company's solvency.

The cuts mean that it will halt construction or even cancel projects, especially in Romania, the company said.

Immoeast, controlled by Austria's Immofinanz, is among the biggest real estate owners in the former Communist countries of Europe.

Its emerging European portfolio is worth more than 10 billion euros and has been under depreciation pressure this year. The company wrote down the portfolio's value by 294 million euros compared with a year ago in the first quarter.

Immoeast and parent Immofinanz, which will also reduce its investment pipeline, also continue talks to sell assets, Immoeast said. Both are in talks to sell 400 million euros of property each.