Investing company Encore Capital Trust (ECT) will organize a new private placement in November, through which it aims to attract a financing of a maximum RON 29.7 million, the decision being already approved by the General Extraordinary Meeting of Shareholders.
This will be the second share capital increase for ECT, after the company successfully completed in June the first round of financing, attracting RON 17.7 million from several successful entrepreneurs and managers from the local business environment, such as Dan Șucu (founder of Mobexpert), Marius Hanganu (co-founder Tremend Software), Iosif Szavuj (founder Ines Group), Silviana Berciu (founder BDG Import and Loft) or Cristian Becheanu (founder Arta pharmacies).
The company’s current equity capital is RON 18.2 million (approximately EUR 3.7 million) and can reach a maximum of RON 48 million (approximately EUR 9.8 million) after the full subscription of the new shares. In the event that the new shares issued within the current capital increase will not be fully subscribed by the current shareholders, they will be offered to third parties at an issue price of 1.05 RON / share.
”The results registered after the closing of the first private placement were excellent and the shareholders’ trust in ECT’s business model led us to organize a new round of financing in such a short time, less than five months. We identified and realised very attractive investments and the current annualized return exceeds the 20% objective set per year. The real estate market continues to present numerous opportunities and our negotiation capacity, expertise in identifying the most suitable investments and in concluding financing partnerships with developers are the main arguments that lead us to be confident in the evolution of the company towards a portfolio worth tens of millions of Euros in the following years,” stated Robert Butoi, Executive Director Encore Capital Trust.
The company already invested more than two-thirds of the amount raised after the first round of financing, reaching a portfolio with 130 residential units from eight projects located in Bucharest and Ilfov area. ECT’s investment policy is focused on six lines of business, the main ones being the acquisition of residential units in projects in early development stages, at a preferential price, mezzanine investments, which involve capital participation in the development of a project and the capitalization of the completed product, the acquisition of real estate assets to obtain a monthly return and iBuyer acquisitions on the secondary residential market.
Encore Capital Trust was founded and is managed by a series of proven entrepreneurs and managers with a vast experience on the local real estate market and business environment. The foundations of the company were laid by Cosmin Savu-Cristescu, managing director of Redport Capital group, an important local real estate developer and Andrei Sarbu, CEO of real estate consultant SVN Romania, one of the main profile companies active in Romania and the one with the most extensive activity on the residential segment.
The company’s management team also includes Bogdan Gubandru, who holds the position of Investment Director – being one of the most experienced real estate consultants specialized in investment transactions, involved in the sale of several known office projects, such as America House, Floreasca Park and The Light One – Amalia Dirle as CFO, after a career of over 12 years on the banking sector, out of which the last five in private banking within BRD GSG, Victor Vremera as Development and Acquisition Manager, with over nine years of experience in companies like Coldwell Banker, Metropolitan and SVN Romania, as well as Elena-Diana Nedelcu, as Head of Legal.
Encore Capital Trust also benefits from a redoubtable Advisory Board, consisting of numerous successful consultants and economists, among whom are Liviu Arnautu, founder and partner of the asset manager Atlas Asset Management, Adrian Codirlasu, vice-president of CFA Romania and DOFIN associate professor at ASE and Bogdan Belciu, co-founder and partner of the consulting company Valorem Business Advisors.