Flavus Investitii allocates EUR 1.5 billion to Brasov Coresi project

The Coresi project, which features office, commercial and residential areas, plus 25 hectares of industrial platform, will be developed in five stages. The first stage will start in 2009 and will see the development of the commercial and residential area, which make up 25 percent of the total project, following an investment of EUR 150 million. Completion of the project's first stage is estimated in spring of 2011, when the developer will deliver a 100,000-sqm shopping center and 200 shops, besides 200 apartments.
The company is planning a similar commercial development in Timisoara, on 23 hectares.
“We are in advanced negotiations with a commercial developer for the shopping center in Coresi, in line with our aim to partner experienced foreign developers. We also target public-private partnerships for the other developments within the project,” said Florin Rebic, managing director of Flavus Investitii.
Besides office developments totaling 200,000 sqm, the firm is planning a large residential area of 6,000 apartments. According to Rebic, it foresees different partnerships for project development, planning joint ventures with specialized foreign developers for the commercial and office sites and thinking of developing the residential segment alone. So far, it has spent EUR 4 million on acquiring the neighboring properties of the Tractorul site and USD 3 million on developing the project's master plan. The firm has also sold Tractorul's industrial equipment, from which it made EUR 6 million, according to officials.
In April, the Tractorul production facility in Brasov was closed, with the loss of 1,800 jobs. Two months later, Flavus Investitii won the auction and acquired its assets, including the name. Following the acquisition, Flavus has been compelled to keep tractor production in the company's object of activity (CAEN), but without being required to produce them, according to Rebic. “We secured 25 hectares of industrial platform where we plan to assemble tractors or agricultural equipment and we may be targeted by three Asian producers looking to develop production plants in Europe,” said Rebic.
Magda Purice