According to Tal Roma, business development manager at AFI Europe Romania, the investment in this hotel is estimated at EUR 25 million. AFI Europe will try to join the hotel to an international brand which is not yet present on the Romanian hotel market. “We will build the hotel and the company owning the hotel brand will rent the building,” said Roma.
The Cotroceni Park project will also comprise four office buildings, according to the company representative. In Romania, the developer is negotiating with several banks to find development capital for other planned projects and says it is not concerned by the international financial crisis.
“The financing will probably be obtained on harsher terms and at a higher rate of interest. Our big advantage is that we acquired the land three years ago and its value has increased several times over,” said Roma.
The Israeli developer is planning to assign over EUR 2 billion to locally-based projects in the next 14 years, the focus being on commercial center development. So far, Africa Israel Investments has invested around EUR 200 million in acquiring land in Bucharest, Arad and Ploiesti, where it is developing commercial centers, office buildings and residential projects.
In the first half of 2008, the developer announced financing of EUR 234 million obtained from Hypo Real Estate Bank, for the Cotroceni Park development launched in 2007. According to official data, the loan has been granted for eight years. It will cover 80 percent of the entire investment estimated at almost EUR 300 million, according to the company's Romanian officials.