Forty Management approved the contracting of a syndicated loan worth 65 million euro. The company will soon access the funding offered by CEC (syndicate leader), Alpha Bank and First Bank to the company that will develop Lagoon City Bucharest, owned 100% by Forty Management.
It is one of the largest syndicated loans a Romanian real estate developer is accessing on the real estate market in the past few years.
Forty Management & Investments will contract a credit loan amounting up to 55 million euro for the financing of Central District Lagoon City, a project consisting in a 5 stars hotel with 314 rooms, an office building with a renting surface of 8.173 sqm, 272 apartments and 7.840 sqm commercial spaces surrounding a lagoon with a surface of 10.600 sqm with 3.900 sqm white sand beaches, and a credit facility worth 10 million euro for the partial financing of the VAT during the construction stage.
Gross investment worth 108 million euro before VAT
The total cost of the project is estimated to approximately 108 million euro, excluding patents and licences costs. The entire project will be developed in a single stage, with an estimated due date in 2025.
The financing is granted for a 10-year period and will ulteriorly be refunded until maturity.
“Central District Lagoon City is an ambitious project that meets a few national and European pioneer features: it is the first urban regeneration in the Central and Eastern Europe that implements the Crystal Lagoons concept – allowing the development of large turquoise lagoons with reduced maintenance costs – as well as the first project in Europe to reach the Carbon Neutral sustainability standard. It is a fabulous project, with high impact, that will give back to the city an industrial area, transforming it from an abandoned space into a multifunctional green area, that will offer its inhabitants top facilities. What makes me most happy is we managed to communicate the values of this amazing project to the banks, and the financing decision shows their capacity and vision to participate to the development of projects radically changing the housing experience”, states Lucian Azoiței, CEO Forty Management.
„Out vision is to support the Romanian economy, but mostly the sustainable, environment friendly, well-structured projects that ensure a healthy financial growth. Central District Lagoon City is one of these projects” states Bogdan Neacșu, General Director CEC Bank.