Gea Prasa real estate developer, controlled by two families ofSpanish investors, needs around 15m euros to finalise the firststage of Laguna Residence housing complex made up of 252 apartmentslocated on the banks of Tei Lake of Bucharest, whose constructionis around six months late.
"We are late because of the troubles we've had withsubcontractors and of the financial crisis that is hurtingeverybody. At present, we need a further 15m euros to finish theproject and we're in talks with a bank for the financing of thelast part of the construction works. We could continue constructionworks even if we do not secure the necessary financing from thebank," stated Rafael Ordas, general manager of Gea Prasa inRomania.
The project entails investments of around 45m euros, accordingto Ordas, and the delay prompted part of the buyers to ask fortheir advance payments back or the reduction of apartmentprices.
"We have pre-contracts for around 100 apartments in the projectand except four cases I believe that with the rest of buyers we'llsign additional contracts to extend the delivery term until lateJune. People who signed were offered discounts, depending on thepurchased apartment, of 10% or even more (...)," Ordas says.
He says around 50 workers were on the site of the project lastweek. "When we get to finishing works, we will be able to step upthe construction process," says Ordas.
Sales within the project have been extremely weak this year,when Ordas says he sold around 1-2 apartments per month. As aresult, prices also dropped, from an average of 1,800 euros perbuilt square metre to around 1,500 euros/square metre, so that thecheapest unit, a two-room apartment, now costs around 130,000 eurosplus VAT.
Laguna Residence is developed on a 53,000 square metre plot ofland and comprises several 3-7-storey blocks.
Gea Prasa also owns the site of former edible oil plant Munteniaof Viilor area in Bucharest and two plots in Constanta, with thevalue of investments domestically revolving around 200m euros.
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