The Banking Assets Resolution Agency (AVAB) is considering forced execution for the Sofitel Hotel, the French Village residential complex, as well as for the French Club and the sports centre in the French Village, in order to recover the over $78 million receivable on World Trade Center Bucharest (WTCB).
"Our time frame is April 2004, when the foreign loan secured by the State for the company is paid in full. Still, it would be best to sell the village, pay what's left of the foreign loan and have the rest deposited to the state budget, rather than wait until 2004 when the loan is paid in full and we become number one in the priority of claim," Ionel Blanculescu, AVAB chairman told Ziarul Financiar.
"We are now trying to prepare the market so that we could find buyers as soon as we organise an auction for these assets of the World Trade Center Bucharest," he added. "This is the last tourism unit in AVAB's portfolio and would be its 'doctoral paper' after selling the Alpin, Europa and Holiday Inn Hotels," Blanculescu concluded.
The French Village, a residential complex near the Herastrau Park is appraised at 11-13 million euros by real estate analysts. "The Village comprises 34 villas and 35 flats, with more than 90% of them inhabited. The average rent in this complex is 2,500 euros a month, and even higher for villas. As for flats, the rent goes up to 2,000 euros a month," Eric Royer, the manager of the complex said. The French Village was the first deluxe residential complex in Bucharest, home of many expats that came to Romania after 1990.
WTCB sources say this complex is a major profit-maker for the company at the moment.
The French Club comprises a pool, indoor and outdoor tennis courts, a fitness centre, massage parlours, a squash court, sauna and jacuzzi.
The WTCB Complex made up of the Sofitel Hotel, office space, the World Trade Plaza shopping gallery and the French Village was built in 1994 and financed by a syndicate of French banks, with the loan secured by the Romanian State. It failed to pay the debt to the banks, so that the State took over its dues through the Finance Ministry.
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