Impact Bucharest will buy 30 hectares of land in northern Bucharest, where it plans to build at least 1,000 lodgings within a residential complex.
Impact will acquire the company owning the land, Fondamento Forte SRL, for 6 million dollars and will pay its 133,000-dollar debts to one of its shareholders, Tal Almog.
The main shareholder of the company bought by Impact is Philips Grant Quasha, who owns 80% in the company's capital, according to data provided by the Ministry of Justice. Tal Almog, that owns a stake of 15% in Fondamento Forte, is a consultant for Romania with investment fund Sierra Quadrant. The price paid by Impact stands at 20.6 USD per square metre. The acquisition is to be financed from the company's own funds, as well as through credits.
The home building market has been increasingly dynamic due to surging prices for old buildings, which are now as expensive as the new buildings. Impact chairman Ioan Popp says his company will invest about 90 million euros in the construction of homes on the new land, with the project to be finalised within the next five years.
"We will build over 1,000 houses on this terrain, but the number could as well get to 2,000. I think we will invest about 90 million euros," Popp says.
Construction works at the new residential complex will start shortly.
"We will start building as soon as we get the necessary licences, which I do not think will last more than 30 days," says Popp.
Impact shareholders in March approved the acquisition of 12 hectares of land in the same northern area, for which the company paid 4.4 million dollars.
The company's chairman said that, on that piece of land, the company planned to build 400 lodgings, of which 320 houses, and the rest apartments.
The company has plans to build about 300 lodgings in residential complexes within the next 12 months.
Impact is building villas within residential complexes in Bucharest, Constanta and Oradea and is also building its own HQ in the northern area of Bucharest.
In the first quarter of this year, Impact Bucharest registered turnover worth 127.1 billion ROL (3.8 million dollars), almost 80% higher as compared to the similar period of 2003.
In the same quarter, the company reported net profit worth 25.3 billion ROL (0.8 million dollars), as compared to 6.2 billion ROL in the corresponding period of the previous year.
vlad.nicolaescu@zf.ro
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