In the midst of a portfolio restructuring process, Immoeast has recently sealed the acquisition of four real estate projects from a partner in turn affected by financing problems.
Austrian investment fund Immoeast, with almost one billion euros' worth of real estate assets on the Romanian market, took over the full stake in four real estate projects which it was the co-owner of, alongside European Future Group developer, and which have entailed investments worth around 500 million euros.
Immoeast now fully owns two new projects in Bucharest, a residential one and an office one, in the Jandarmeriei area, as well as two retail projects in Brasov.
"We sold the stakes in the four projects in which we were minority shareholders alongside Immoeast - Livada de Meri, Meteo Business City, Roua Shopping Park and IUS in Brasov.
"The acquisition of land for these projects has also entailed banking loans," Jeff Kirby, CEO and shareholder of the European Future Group (EFG), told ZF. EFG froze all real estate development projects at the beginning of this year, laying off over 90% of employees on the Romanian market because of liquidity problems.
According to existing information, the EFG held stakes of around 10% in each of these projects, which means the deal was probably worth less than 5 million euros, given that the holders of these assets have cumulated debt worth around 40 million euros contracted for the acquisition of land.
The biggest project purchased by Immoeast is the one on the 6.1-hectare plot of tool factory IUS in Brasov, where a 150,000 square-metre mixed project is planned for development, which will include a hotel, a business centre and homes, following an investment announced to stand at 240 million euros.
The second project in Brasov entails the construction of a retail park, for which rental contracts have been signed with Carrefour and Praktiker chains.
The projects in Bucharest, in the Jandarmeriei area, entail the construction of 350 apartments as part of the Livada de Meri project, and of 50,000 square metres of office space in the Meteo Business City business park.
EFG had started construction works on the Meteo Business City projects and on the retail park in Brasov, but stopped them in winter, after having failed to get credits to finance them.
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