Ionel Giuglea and Monica Barcutean, the new heads of Raiffeisen Evolution's operations in Romania, say the Austrian group is set to invest in the development of some projects with a sale value of at least 20 million euros, and funds for Romania are unlimited.
Raiffeisen Evolution, the real estate development arm of Austria's Raiffeisen group, which is developing Floreasca City real estate project in the capital city, has decided to become much more aggressive on the Romanian market starting this year to profit from the real estate sector boom, after it changed its management.
"Raiffeisen Evolution decided to develop more aggressively on the Romanian market for it to be able to take advantage of the current opportunities on the domestic real estate market. We are interested in developing real estate projects both in Bucharest and in major cities of the country with a sale value of at least 20 million euros," Ionel Giuglea, managing director of the local arm of Raiffeisen Evolution, told ZF.
The Austrian group early this year recruited Ionel Giuglea, the former general manager of Alpine SA, and Monica Barcutean, the former chief financial officer with the domestic infrastructure and constructions unit of Strabag group, in a bid to step up investments on the Romanian market.
Raiffeisen Evolution has so far invested 50 million euros domestically, with some of the money directed to the development of Floreasca Tower office building subsequently called Oracle Tower, which was sold in late 2005 to Uniqa Austrian insurer. The 50 million-euro sum also includes the 25 million euros paid for the plot of land Floreasca City project will be developed on.
"We are in advanced talks to take over a plot of land in Bucharest on which we are set to develop a housing project that entails 50 million euros in investments. Moreover, we are in talks to buy several plots of land in major cities of the country," specifies Giuglea.
The most important project of Raiffeisen Evolution is Floreasca City, located between Calea Floreasca and Barbu Vacarescu, that will have an area of 4 hectares and include, at first, a shopping centre, Promenade Mall, with a total area of 50,000 square metres, and an office building, Sky Tower, of 33,000 square metres.
"In mid-October, we will receive the construction permit for this project, for which we've received financing, and the first part will be finished in late 2009. For the office building, we've received the approval for a height of 137 metres, meaning this will be the tallest office building of Bucharest," says Giuglea.
Floreasca City will attract investments of 200-250 million euros and is the biggest project under development in Europe by Raiffeisen Evolution.
Raiffeisen Evolution
Has decided to become much
more aggressive on the Romanian market starting this year to profit from the real estate sector boom, after it changed its management.
Is set to invest in the development of some projects with a sale
value of at least 20 million euros
Early this year changed its management team in a bid
to step up investments on the domestic market
Has so far invested 50 million euros on the Romanian market
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