The real estate sector and the capital market have been amongthe worst hurt by the crisis in the last three years. However, realestate companies have been less affected than other sectors, suchas industry and constructions, and have become some of the mostvaluable entities on the RASDAQ market.
Generalcom Bucureşti (GECM), controlled by French businessmanAlain Bonte, currently has the biggest capitalisation on RASDAQ, ofover 300 million RON (70 million euros), higher even than in 2007,before the crisis, when both the Stock Exchange and the real estatemarket were at all-time highs.
Unirea Shopping Center (SCDM), the company held by Dan Adamescuwhich owns Unirea shopping centre in central Bucharest, is valuedat nearly 200 million RON (46 million euros) at present, around 45%less than in July 2007.
How can this paradox be explained?
One reason is that these companies are not real estate developers,which have in fact been significantly hurt by the crisis, they areinstead companies that own real estate assets and make revenuesfrom renting them out. Second, most of them inherited high streetstores in big cities, which means they have little trouble findingtenants.
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