The shareholders of the Euromall group, the developer of a commercial center in Pitesti, will invest EUR 6 million in a high-end residential project in downtown Bucharest, according to Mediafax. The project is developed by Metropolitan Developments, a company owned by Euromall’s shareholders. The Israeli investors want this to be the first of several such projects they plan to develop in the capital.
Vernescu Residence is located on the Sfintii Voievozi Street and is scheduled for completion in the spring of next year.
The project consists of a five-storey building with 36 apartments. Prices start at EUR 100,000 for a studio apartment and EUR 500,000 for a three-bedroom apartment. Surfaces vary from 60 sqm for a studio and reach 2007 sqm for three-bedroom units.
“There is a big demand for such projects and we believe that we will sell very quickly all the apartments. We are investing our own money so there is no pressure to sell. There are several plots of land we own in Bucharest for this type of project and we hope that next year we will start another one,” Tomer Barhom, one of the investors told Mediafax.
The Euromall in Pitesti was bought by Immofinanz in 2007. The developer was announcing the same year plans to invest millions of euros in real estate projects on the plots of land it owned but everything was postponed because of the crisis. One such project was the development of 1,000 apartments in Bucharest’s Baneasa neighborhood in partnership with Immofinanz. This would have required a EUR 150 million investment but it was postponed because of ongoing litigation between the two companies.