February 27, 2020 / 6:50 PM / a month ago

UPDATE 1-CA Immo sues Republic of Austria and Carinthia province for 1.9 bln euros

(Adds detail, background)

VIENNA, Feb 27 (Reuters) - Property group CA Immo said on Thursday it would sue the Republic of Austria and the province of Carinthia for damages of 1.9 billion euros ($2.1 billion) in connection with the privatisation of federal residential property companies in 2004.

Austria sold four federal residential property companies consisting of 58,000 apartments to a consortium of Immofinanz Immobilien Anlagen, Vienna Insurance Group, two banks in Upper Austria and another insurance group, raising a total of 2.6 billion euros.

CA Immo took part in the bidding process but came away empty-handed. The sale of the properties has been a matter for the Austrian courts for years.

CA Immo said it was severely damaged by unlawful and culpably biased influence on the best bidder procedure.

“In order to assert the damage sustained, the company will first bring a partial action for an initial sum of 1 million euros out of the total damage of 1.9 billion euros,” CA Immo said.

The Republic of Austria and the province of Carinthia have so far rejected offers of talks for cost-saving out-of-court settlement of the claims, CA Immo said. ($1 = 0.9201 euros) (Reporting by Kirsti Knolle Editing by Chris Reese, Kirsten Donovan)

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