Real estate projects in the swirl of insolvencies
The number of real estate news about bankruptcies and
insolvencies has this year topped the one about investments and new
projects. The biggest deals have come to be sealed after the
foreclosure of real estate mega-projects, reads BUSINESS CONSTRUCT
magazine.
The recipe of exiting insolvency is the same for all businesses.
Finding a new funding source, the so-called "fresh money", can make
the difference between a bankruptcy and a successful
reorganisation.
And as there are few funds now for real estate investments, after
developers have been under the sign of insolvency in the past year,
the next stage could be that of bankruptcies.
Colentina is the district with the highest number of frozen
projects in Bucharest. However, Colentina is also the district that
may present the first case of a successful reorganisation of a
major real estate developer, Copper Beech Capital firm, developing
Blue Tower complex.
Banks will no longer rush to turn insolvencies into bankruptcies,
but developers also have to find new funding solutions and bring
apartment prices at the level where they can find buyers.