conwert announced negative one-off adjustments   

conwert announced, that strategic refocusing leads to negative one-off adjustments. In the current business year of 2013 the Company intends to further its strategic repositioning as a residential property portfolio manager and to set its regional focus on Germany and Austria. This leads to negative one-off adjustments that will have a negative impact on the 2012 results, the company said. The sales result will be significantly lower in the future. However, conwert's goodwill is essentially based on its future sales result. The significant reduction of its activities in this area means that conwert has to make one-off write-downs of 114.8 mn euros on its goodwill and of 2.2 mn euros on its customer and management relationships, the group stated. Further, the market environment of conwert's non-core markets has still not stabilised in 2012. conwert believes this persistently tough economic environment in Europe is also affecting the current potential of some of its properties, especially properties located in CEE and individual office buildings. As a result, the expert valuation has indicated negative fair value adjustments of 40-45 mn euros for the properties in CEE and Luxembourg (including ECO properties) and of around 25 mn for individual office properties from the Eco portfolio in Austria and Germany.