IMMOEAST AG, Austria's largest developer, reported a loss for the first quarter yesterday as the value of its properties in central and eastern Europe declined.

The net loss for the three months ended July 31 was 53.6 million euros (US$77 million), or 6 cents a share, compared with a profit of 98.1 million euros, or 13 cents, a year earlier, it said.

Immoeast was shifting its 6 billion-euro development program away from central Europe toward growing economies in the Balkans and the former Soviet Union, Bloomberg News reported. Half of the company's assets were now in Romania, Bulgaria, Russia and Ukraine.

"Negotiations concerning the sale of properties worth a total of almost 500 million euros have begun," Immoeast said. Immofinanz AG owns 54 percent of Immoeast and the companies are expected to merge later this year.