Businessman Ion Tiriac, one of the richest Romanians, has not overlooked any segment of the real estate market, the most profitable investment field in Romania, managing to build a property portfolio estimated to be worth over one billion euros.
Anca Ioan, general manager of the Tiriac Group, has revealed, for the first time, the real estate fortune and the structure of the portfolio held by the former tennis player, in an interview with Business Magazin.
Despite the many projects he is involved in, from a medium and long-term perspective, the main assets owned by Tiriac are most likely the 210 hectares of land across the country.
This estimate takes into consideration the increase on this segment of the real estate market over the last few years, a trend that will continue in the coming years, according to real estate consultants.
"All this land has been acquired for future developments and is chiefly located in central areas, because we bought it with a view to opening car showrooms," stated Anca Ioan.
Most of the land is located outside Bucharest, in Ploiesti and Timisoara, Suceava and Bacau, actually in most of the big cities in Romania. This is because the group's strategy entails spreading automotive retail and real estate projects throughout every county capital in Romania.
At an average value of 100 euros per square metre, considering the central and semi-central locations, the land is worth more than 200 million euros.
Although Tiriac could just wait for the land prices to continue to increase and probably double his money, he has also become a partner in a series of real estate projects both in Bucharest and in the rest of the country.
The companies run by Tiriac have five residential projects totalling 320,000 square metres, in various stages of development in Bucharest, Timisoara, Brasov and Sibiu.
A simple calculation shows that at an average price of 1,000 euros per square metre, the market value of the residential projects exceeds 300 million euros, even though the apartments in the Residenz complex in Chitila carry a price tag of 1,600 euros per square metre (VAT included).
Residenz is built in partnership with the Germans at LEG.
Tiriac's investments on the office space segment have only been conducted in Bucharest so far, where four projects are planned, totalling 121,000 square metres.
Taking into account a monthly rent of 16 euros/square metre and a 7% annual yield for the investment in euros for a potential buyer, the market value of these projects is around 330 million euros.
Another partnership that Tiriac has sealed involves the Spanish Riofisa group.
The two are set to build two projects together in Timisoara and Brasov, with investments estimated at 260 million euros.
The projects will each include a mall, offices, a residential area and a hotel.
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