Spanish Avantia puts EUR 90 million aside for Romanian residential projects

“So far, at least for the 1 Decembrie project, we are in negotiations with banks which would give us 65 percent of the entire financing but we think we can increase the participation to 70 percent,” said Diaz.
The project on 1 Decembrie is worth EUR 12 million, including the 1,500-sqm plot of land purchased in 2006, which cost EUR 3 million. Currently, the project, which comprises an 11-storey building of 110 residential units on a 11,000-sqm built area, is awaiting construction permits.
The developer plans to start work on the project in June this year, with delivery expected in 2011. An apartment in the complex can be bought from EUR 64,300 for a 48-sqm studio up to EUR 140,000 for a four-room apartment of 120 sqm. Parking spaces cost EUR 9,500 without VAT.
On the long term, the company has plans to develop 200,000 sqm of office space and 5,000 homes on the five plots it has acquired in Bucharest. Among its plans are a 20,000-sqm office building on Mantuleasa Street and a 300-unit residential compound in Obor.
Avantia also has 12 hectares of land in the Lacul Morii area for a more complex development, for which the company has assigned an architect and developed the master plan. The company entered the Romanian market in 2006 by acquiring five plots, totaling over 140,000 sqm in and around Bucharest, for which it paid around EUR 67 million.
Magda Purice