Charlemagne, which sold three office buildings in Bucharest for 110 million euros last year, is in talks to become involved in three more projects, after a period during which the British company kept a low profile on the Romanian market.
"We are now starting to see more and more opportunities, given that properties were overvalued last year. The price of land is now lower and owners are more flexible and we have more opportunities to become part of co-developments," stated Mihai Diaconescu, one of the representatives of the British company on the domestic market.
Diaconescu and Dennis Selinas are the only employees of Charlemagne in Romania, a market where the company posted 20 million-euro profit in approximately one and a half years, in the wake of the acquisition of three office buildings (PGV Tower, Millennium Business Center and Construdava) for almost 90 million euros, which were later sold to DEGI for more than 110 million euros.
The business of the company on the domestic market consists of a 50% interest in Asmita Gardens residential complex (788 homes), currently under construction, the Euro Tower office building, now in development on the Barbu Vacarescu Boulevard, where Charlemagne owns 40%, as well as another project, which will develop offices on 16,000 square metres of land across the street from the Baneasa project, where the Brits own 50%.
"We do not have the necessary structure (i.e. in terms of a team) to independently manage the development of a project on the domestic market. We will not buy any more completed properties because yields have gone down faster than expected," Diaconescu added.
The cash available to the fund in charge of development operations, managed by Charlemagne (ECDC), exceeds 30 million euros, which could account for an investment volume of some 300 million euros, as a result of partnerships concluded and on the condition that bank loans are obtained.
The only residential project Charlemagne has become involved in on the Rokmanian market is Asmita Gardens on Splaiul Unirii, where 60% of the homes have already been sold, which is about 470 flats out of a total of 788.
"To be able to afford a home in the Asmita complex, the monthly income per family must be at least 1,500 euros. The average price per square metre built in this project has reached 1,600 euros plus VAT," the developer's representatives explained.
The Asmita project, financed with a loan from Alpha Bank, is being built by Strabag, and was designed by Westfourth architecture firm. The project manager of this project is British Gardner & Theobald, and sales are handled by real estate consultancy firm Colliers International.
As for its ongoing office projects, Charlemagne has partnerships with the Dutch at Cascade Group for the Euro Tower and with businessman Bogac Altay for the project on the National Road number 1, which is now in the permit securing stage.
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