US group General Electric (GE), the world''s largest company in terms of market value, plans to enter the leasing and real estate markets through direct operations over the coming period.
The move comes as part of its strategy to boost the value of its operations in Romania.
After years of research, GE this year unleashed its first important project in Romania: an investment of more than 80 million euros in the building of a business services platform for its corporate customers, which would turn GE into the biggest US employer in Romania, with over 1,500 jobs created.
GE recently purchased 30% in Mall of Sofia, the biggest commercial complex in Bulgaria, and will enter the Romanian real estate market over the next six months, according to the Dnevnik, the Bulgarian daily newspaper, which quoted Karim Habra, director for Central and Eastern Europe with GE Finance Real Estate, the real estate unit of the US giant.
"GE will launch direct operations on the Romanian leasing market in the first half of next year, starting with truck leasing. GE Commercial Finance (a GE company) will soon open an office in Bucharest. We are now at the stage of getting a licence," Dan Ionescu, GE regional executive manager for Central and Eastern Europe, told Ziarul Financiar.
GE Commercial Finance has assets worth over 232 billion dollars and has operations in more than 35 countries worldwide.
The Romanian leasing market is this year expected to reach 2 billion euros, with growth of over 30% year-on-year. Car leasing accounts for about 75%-80% of the total market.
Speaking about GE''s acquisition and expansion plans on the real estate market, Ionescu said: "Our company is now considering opportunities on the Romanian real estate market. I cannot tell you when the moment for our entry on the market is to come, it could be six months from now, or a year, or tomorrow."
The domestic real estate market is one of the most dynamic sectors of the economy, and over the last 2-3 years has been the scene of several deals in office space, commercial and residential projects.
The attractive profit margins compared with other markets in Central and Eastern Europe have turned Romania into an attractive target for international players, including major developers such as TriGranit and investment funds such as Europolis and Immofinanz.
This summer saw Nani Beccalli, the GE International chairman, announce the opening in Romania of a business services platform for its European customers.
The project will involve the investment of over 80 million euros by GECIS Global, a company in which GE owns 40%, and will see the opening by Gecis of 4,000 square metres of office space in Iride Business Park, an area to be expanded to 8,000 square metres.
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