Caterata has so far invested EUR 50 million in more than 33 hectares of land in Bucharest and other Romanian cities, and intends to invest up to EUR 400 million in developing the planned apartments. Although the company believes it is not a good time for the residential market in Romania, it hopes the crisis will be short.
“We're in no hurry with the projects we're planning,” said Yigal Solomon, general manager of New Horizon Group.
The company will adapt to market demand by building its projects in stages.
The first project started by Caterata in Romania is the 156-apartment Odyseea Residential, an EUR 18 million development which should be delivered in 2010, close to Baneasa forest. The other most advanced projects for the firm in Romania are a residential scheme close to Cernica Lake and a residential project in Piatra Neamt, in partnership with Profit.
Profit Building Group, a partner of Caterata in other residential projects, is planning to build around 3,000 apartments by itself in Ploiesti, Bucharest and Constanta, and another 1,000 apartments in Satu Mare in partnership with Paterata. The group owns a 2,000-sqm office building in Piatra Neamt, the former Romanian Savings Bank headquarters. The planned project should require around EUR 500 million of investments.
Odyseea Residential will be priced at EUR 1,500 per sqm, plus VAT. The developer has already sold ten of the apartments to Romanian astronaut Dumitru Prunariu and to several lawyers from the Ciurtin, Brasoveanu & Asociatii law firm.