Monday, June 25, 2007

Fabian Romania buys 50 pct stake in Timisoara site for 4.7 mln eur

LONDON (Thomson Financial) - Fabian Romania Property Fund Ltd said it has bought a 50 pct stake in a residential development site in Timisoara for 4.7 mln eur.Coltex, the co-shareholder holding the other 50 pct interest, has entered into a partnership agreement with Fabian to build over 250 apartments and will be the development manager.

Fabian said it acquired 50 pct of a development company owning 1.1 hectare site in North Timisoara, the equity consideration of which amounted to 1 mln eur.The development company has secured and fully drawndown on a land finance facility from Banca Romaneasca for 3.6 mln eur.Mark Owen, property director of Fabian Capital, the company's investment adviser said: 'This is the first investment for Fabian outside Bucharest and our second residential scheme. The purchase price for the land is extremely attractive relative to comparable plots in Bucharest.'

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