Warburg Pincus takes over 50% in South Pacific

Warburg Pincus US private equity firm, with investments worth above 29bn dollars in 30 countries, took over a 50% stake in South Pacific Group real estate developer of Romania, controlled by Australian businessmen George Prelea and his son Andrew Prelea, together with Richard Garner. The deal amounted to some 30m euros, according to some market sources, entailed a capital increase and was completed in September 2008. "We wanted to speed up our business expansion through a capital injection, but we have unfortunately collected only around 20% of the deal value so far. We'll receive the rest of the money in tranches, in the next 18 months," stated Andrew Prelea, South Pacific Group CEO. The real estate developer has so far finalised 300 housing units particularly in Tunari area of northern Bucharest and is due to finish another almost 400 housing units within three projects. Over 60% of the 396 housing units South Pacific will finalise this year have been sold. The company also launched, a month ago, a programme through which units can be rented ahead of the acquisition, with a monthly rent starting from 280 euros for a two-room apartment in the Adelaide complex. "This year, we'll start another two projects, Darwin, with 117 apartments and another 255 housing unit complex, with prices to stand below 100,000 euros," Andrew Prelea also stated. South Pacific Group's first project on the domestic market was developed in Straulesti, for the Defence Ministry, with investments amounting to 13m euros.