Horatiu Cercel, who controls Concefa, a constructions group with business worth 50 million euros, intends to develop several residential projects within the next few years, which are estimated to be worth over 300 million euros.
"Our short term development strategy entails the rapid development of our residential projects. We have already acquired the necessary plots of land, i.e. around 40 hectares, primarily in Sibiu and Brasov. The projects involve the construction of 4-5,000 housing units, which will retail at an average price of 75-80,000 euros," said Horatiu Cercel, general manager of Concefa Sibiu, in an interview with ZF.
Concefa holds an approximately 24-hectare plot of land on the outskirts of Sibiu and another 3.5-hectare plot close to Brasov.
According to Cercel, investments will be conducted over a 6 to 8-year period, whilst the projects already have the necessary urban development plans, although the company is currently in the process of securing construction permits.
"The construction of the residential projects will start as soon as we secure the construction permits, i.e. sometime in the second half of next year. In Brasov, we have limited space, so we are confined to building homes. In Sibiu, we will be able to further expand, and build other additional spaces," said Horatiu Cercel.
He added that in order to fund the projects, the company would use all available resources, i.e. bank loans, money raised from capital increases and contributions made by clients during the execution of the project.
The businessman stated that Romanians who left to work abroad, but recently returned to Romania, have acquired half of the over 300 apartments built by Concefa this year, which could represent a significant share of the market in the future.
Horatiu Cercel also foresees a potential merger between his construction firms, or firms in which he is the main shareholder, i.e. Concefa Sibiu (COFI), SCCF Timisoara (CFES), SCCF Constanta (CFER) and Tunele Brasov.
"Altogether, these companies' turnover is worth around 50 million euros, whilst we anticipate at least 100 million euros in 2009. The estimate is a modest one, if we consider that the whole constructions sector saw a 40% increase in the first part of the year," added Cercel.
Horatiu Cercel acquired a 70% stake in Tunele Brasov, which specialises in building tunnels and also controls constructions firm SCCF Constanta.
Cercel also increased his stake in SCCF Timisoara this year, and now controls around 27% of the company, together with other companies in the group.
Concefa Sibiu holds around 16% of the shares of SCCF Timisoara and the businessman holds an approximately 11.5% share of the company's capital.
Concefa Sibiu will take out a loan worth 10 million euros to fund the acquisition of another company's assets where the construction company intends to develop a real estate project.
Concefa
Turnover worth 50 million euros
Intends to develop residential projects estimated at over 300 million euros within the next few years, primarily in Sibiu and Brasov
The company will use bank loans, capital increases and contributions from clients in order to fund its investments
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