Hercesa took money from BCR and La Caixa for Cismigiu Hotel

Spain's real estate developer Hercesa, involved in several housing projects in Bucharest, took out a 10m-euro loan from BCR and La Caixa to finish the rehabilitation of former Cismigiu Hotel, set to be ready in late 2011. "At present, we're working on the structure of the hotel, which we'll turn into a 65-room extended-stay hotel. We will build apartments to rent," stated Alejandro Solano, Hercesa general manager in Romania. He added he could not specify how much had been invested in the building's rehabilitation so far, but that total investments would reach 10m euros, with the money contracted from BCR and La Caixa. Former Cismigiu Hotel, with a built area of around 7,000 square metres, was nationalised in the '50s and handed back, half a century later, to heirs who subsequently sold it to Hercesa, in the wake of a deal whose value has not been disclosed. The Spanish developer bought the hotel in late 2004, but did not start rehabilitation works until 2009, quoting hurdles in getting construction permits.