Insolvent Asmita Gardens sells 10 apartments this October

Newsroom 06/11/2012 | 10:04

The high-rise apartment tower complex AsmitaGardensin Bucharesthas reported revenues worth approximately EUR 1.2 million this October after selling 10 apartments, said Remus Borza, managing partner of Euro Insol, the project’s judicial administrator.

“We can say this is a record level for real estate sales in a residential project since 2007,” said Borza.

Asmita Gardens is owned in equal share by Indian company Asmita and the Charlemagne investment fund. It went insolvent in November 2011 following construction litigation with the project’s general contractor, Austrian Strabag. This October, the Bucharest Court approved Asmita Gardens’ reorganization plan proposed by the judicial administrator and the project’s main creditor.

Asmita Gardens has EUR 110 million of debt. Its largest creditor is the local branch of Greek Alpha Bank, which is owed EUR 70 million, followed by the two owners with EUR 16 million each.

Last year AsmitaGardensposted RON 183 million of losses, according to Borza and it hadn’t sold a single apartment since October 2010, he disclosed.

Following “record sales” this year, Asmita was able to pay from own sources debts worth EUR 1.05 million to Strabag and EUR 1 million to the Bucharest City Hall, added Borza.

The Asmita Gardens project is located near the Dambovita River, in south-east Bucharest. The complex consists of seven towers, five of which are 16 floors high, one reaches 20 floors and one 24 floors with a total surface of 70,000 sqm. Prices for the remaining flats start at EUR 52,000 for a studio and reach EUR 200,000 for three-bedroom apartments. The complex also features penthouses, commercial spaces and underground parking.