The residential complex will have a built area of 50,000 square meters on the 33,300 smq piece of land. According to the Israeli Globes daily, the Brasov land is the company’s first acquisition in this area. The transaction was intermediated by one of BSR’s Romanian subsidiaries.
This acquisition is part of BSR Europe’s investment strategy, according to company officials, who announced in July 2007 they intend to buy €350 mln worth of land in Romania to develop several residential projects.
Part of these investments are to be financed by selling several properties owned by BSR to the AFI Europe company, a member of Africa Israel Investments Group, active in development and investment in commercial and residential real estate projects in the Czech Republic, Serbia, Romania and Bulgaria. These properties are valuated at some €110-120 mln.
BSR Europe acquired the residential West Park project in Bucharest’s Militari neighborhood for €14 mln in 2006. This project will include over 900 apartments and the final investment is expected to exceed €60 mln.
The company’s main competitors on the domestic real estate market are ENG International, European Future Group, and Adama.
Yields
While the Bucharest real estate market still enjoys a 10 percent yield on the residential segment, in countries such as the Czech Republic, Poland, and Slovakia, annual yields on real estate investments dropped to 7.25-7.50 percent in 2006, according to the Coldwell Banker consultancy company.
