However, the fund will launch the first stage of the Evergreen residential project in Mogosoaia, northern Bucharest. “There have already been €21.6 million invested in the Ploiesti shopping center. The project will not be launched until the economic environment improves and financing is available. Until then, the project is on hold,” a press release states.
Zenith has debts worth €4 million, plus a further €2.7 million owed to project designers. The Lewis Charles board is negotiating a deal with those it owes money to, so that the project can be suspended, Meanwhile it is looking for solutions to refinance the debt, according to the press release.
Lewis Charles owns 99,394 square meters of land in Ploiesti, for which it has an urbanism permit.
The marketing and sales campaign of the investment fund’s second project, Evergreen, owned in partnership with a local company, will be launched at the end of February. The seven-stage project is to be built in the coming four years, totaling 125,000 sqm in constructed area. The first stage begins this March and will include 278 apartments, to be sold for at an average €1,200 per sqm.
The local real estate market is virtually blocked, as banks are reluctant to lend funds to developers or potential buyers. Many projects have been cancelled or delayed.