Wednesday, March 28, 2007

Romania: EBRD to invest about 50 mil euros in local real estate

27 March 2007

The European Bank for Reconstruction and Development (EBRD) might invest at least 50 million euros or 25% of shares of North Real Estate Opportunities to finance real estate projects in Romania and other East European countries, ACT Media news agency reports.

The projects has in view to purchase, develop, renovate and manage real estate in Romania, Moldova, Bulgaria and Ukraine. The fund could make strategic investments in Serbia, Croatia, Macedonia, Kazakhstan, Georgia and Montenegro. If it invests through purchases, the fund will support setting up a secondary institutional market for existing properties, a market not existing in the whole area. Overall costs of the project are confidential.

The EBRD Board will meet on 17 April to make a decision about the project. Investment funds will activate in the market as buyers and co-developers, while developers will be more and more interested in Partnerships, as real estate leasing does not finance large projects and bank credits are more and more expensive, according to a recent report of Richard Ellis company.

According to its analysts, Romania will remain one of the most interesting markets in Central and Eastern Europe, both for institutional and private investors. There will be a rise of transactions with projects before the completion of works, to the detriment of those with completed buildings, investors trying to ensure the best profits, while prices are growing. EBRD could credit a special investment vehicle of companies Globe Trade Center and Aura Investment meant to purchase, manage and develop commercial centers in Romania. North Real Estate Opportunities investment fund will purchased European Retail Park Sibiu for 83 million euros.

The British investment fund North Real Estate will invest 60 million euros for the development of Bucovina commercial centre in Suceava. North Real Estate Opportunities Fund Ltd. is a British investment company based on Guernsey island, dealing with the purchase of commercial areas in Central and Eastern Europe, controlled by North Asset Management, The fund is listed in the alternative investment market at the London exchange and has office in London and Bucharest.

Source: ACT Media News Agency

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