ING Real Estate Development (ING RED), known in Europe for its over 1 billion-euro area development projects, could start the construction of an extensive real estate project in the centre of Bucharest, similar to the Zlote Tarasy project in Warsaw, which includes office space and one of the most spectacular malls in Europe.
"We have identified a plot in Bucharest, which could house such a project. However, things are rather complicated, since there are several owners involved, but we will further examine the possibility of an acquisition and potential project," said Siep Hoeksma, country manager of ING RED.
The company built a similar project in the heart of the Polish capital, which covers 225,000 square metres, and required investments worth 500 million euros. At present, the project's market value is likely to exceed one billion euros.
"A project of this size takes an irritatingly long time to develop, but it is precisely this aspect that brings value to the project. On the other hand, if you announce a project and fail to start it within two years, you begin to have credibility issues," adds Hoeskma.
ING's real estate development division has been present on the local market since November last year, with more than 50 plots in and outside the capital having been assessed since then.
"I didn't have an assistant when I came to Bucharest, just my mobile phone, with which I arranged my meetings. In the meantime, we have established a series of connections with powerful consulting firms, which come up with potential opportunities. We have visited most big cities, such as Brasov, Iasi, Galati, Sibiu, and Pitesti," says Hoeskma.
In fact, the first investments on the local market will be conducted in the provinces, where ING RED could start two projects with a cumulated value of 60 million euros this year.
Hoeksma's objective for the local market is to attract at least 5% of the company's 12 billion-euro investment budget, i.e. projects worth at least 600 million euros over the coming 3-4 years.
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