Baneasa’s 2009 investment budget less than half the initial estimate

Ergen also announced that the company is considering postponing several investment plans, considering that problems related to accessing loans are expected. However, these projects will be resumed later on.

“Consumption will drop in 2009 and this will lead to a decline in the retail market. Financing for various projects has become very difficult to obtain, so the development of real estate projects will slow,” Ergen said. The company’s CEO is expecting stagnation or even a drop on the market in the coming year. “Everybody will be looking for opportunities.”

Sales of stores in Baneasa Shopping City reached €56 million in the April-September 2008 period. The commercial area of the Baneasa Project was valuated at €500 mln, but this value could drop in 2009 due to a volatile market.