Further growth from developments: By the end of 2016 S IMMO had development assets of a total of EUR 84.1 mn. We have now added the Karl-Marx-Strasse development in Berlin with GLA of 22,000 sqm and the at-equity consolidated development in Bratislava with GLA of 23,500 sqm (80% pre-leased) to our estimates. This means that we incorporate two developments in Berlin, two in Bucharest and one in Bratislava in our forecasts for the next three years. We estimate that these developments represent only 30% of the group´s development potential, which we find very exciting because we think there is more substantial organic earnings growth ahead also over the longer term. Moreover, we trust in the strong development skills of S IMMO, which in turn suggest further revaluation gains for the company beyond 2017e (not yet modelled in our estimates).
 
Cash and value reserves in CA Immo and IMMOFINANZ: We estimate that the group invested a total of EUR 130 mn in the shares of both listed Austrian real estate companies since the beginning of 2016. Using the closing prices of CA Immo and IMMOFINANZ at end of June 2017 we calculate a total of EUR 20 mn of hidden reserves from these two participations. Both stakes are reported as available for sale financial instruments, which means that fair value changes in are reported directly in the equity of S IMMO. Moreover, these participations can be sold on the market at any time, which means they can be regarded as similar to cash, leading to an economic loan-to-value of just 43% in 4Q 17e which implies a much stronger balance sheet now.