Baneasa: We have redrafted our strategy four times

 

“We are currently at a stage of observing the market, and will resume investments if this is viable, if demand and opportunities exist,” the company’s Marketing Vice President, Ionut Bodea, told Business Standard.

He said that an estimate regarding the company’s operations this year cannot yet be made, because there are no certainties regarding the evolution of the market. “We are redrafting strategies. So far, we have redrafted our strategy four-five times, because we are obliged to adapt constantly to market conditions,” Bodea said.

He added that the company has the financing needed to continue investments that have already been launched, as it has several credit lines open from past years, but the steps to be taken depend on the new economic situation.

Last March, the company opened the Baneasa Shopping City mall in northern Bucharest, following a €150 million investment. The project has some 85,000 square meters of rentable space. The mall is located in the retail area of the €1.8 billion Baneasa real estate project.

The project, one of the largest in Romania, covering 221 hectares, was announced in the summer of 2006, and will be built in several stages, by 2015. Part of the retail area was already finalized, with several hypermarkets and the IKEA furniture retailer already operating there. It will also include other major retailers, on a total 170.000 sqm area. Office space will cover a total 120,000 sqm, while the residential area will include 4,500 high-end housing units (homes and villa apartments).

Gabriel Popoviciu recently said that 2009 will bring stagnation on the real estate market, and that the retail segment will register the best development.

Baneasa Investments is also involved in developing a shopping area meant to replace the Obor retail area, in eastern Bucharest. The project was launched two years ago, but was later halted following a dispute between Sector 2 City Hall and Bucharest Prefect Office. The feud could be resolved next month, when work is likely to resume. The project requires investments worth some €150 million, and is scheduled to be finalized in three years.

Baneasa Investments was founded in 2000. It is owned by Bucharest Agriculture and Veterinary Science University, a group of companies controlled by Popoviciu and Dimofte, and the Comnord construction company, controlled by Creteanu.

The local real estate market was among the sectors worst hit by the international financial crisis. Banks are reluctant to lend funds to both developers and potential buyers, leading to a deadlock of real estate deals and a significant drop in prices. Several developers have announced they will cancel or delay projects, especially on the residential segment, due to lack of financing.