This was the company’s first transaction on the Romanian market. Rosebud Medical paid an additional €2.6 million in the form of costs associated with the transaction. The Israelis intend to develop a mixed real estate project on the acquired land, to include commercial areas, office buildings and a residential complex. The company estimates its investment to be worth €320 million. The project is based on 200,000 square meters of constructed surface, and will take five-six years to complete.
This is the second-largest transaction made in Romania, following the €77.5 million paid last month by another Israeli real estate developer, Africa Israel Investments, through its subsidiary, Africa Israel Europe (AFI Europe), for 155,000 sqm of land, on which the Laromet factory has been constructed in Bucharest. Rosebud Medical operates on the real estate and construction markets and is controlled by two Israeli businessmen, Shraga Biran and David Wiessman, who together own more than 60 percent of the company’s share capital.
Yields on the Romanian real estate market continue to drop as of the beginning of the second half of 2007. The office market registered its first transactions with yields under 6.5 percent (Millenium Business Center - 6.4 percent, Sema Park - 6.1 percent). Despite downward yields, Bucharest remains the market with some of the highest yields in Europe, exceeded only by Moscow, Istanbul and Sofia, with 9 percent, 8.5 percent, and 7.5 percent, respectively.
Owners
Rosebud Medical operates on the real estate and construction markets and is controlled by two Israeli businessmen, Shraga Biran and David Wiessman, who together own more than 60 percent of the company’s share capital.
