“We must initiate the auction procedure to find a new general entrepreneur, to help the Danya Cebus international construction company with its work on this project. Practically speaking, we want to have another company to assist in the construction of the second building, and to speed up the other finalizing of the other two, because we are far behind,” according to a declaration for Business Standard by Alexandru Dima, Sales Manager of Planorama.
With a delay of 14 months according to the initially announced completion date, the company’s representative indicated that, according to the contract, penalties will amount to 0.02 percent/day of the value of the appartment. On average, EuroHabitat must pay for 75 percent of the project, because the sales contract for the last building was concluded separately with Romania Invest, which means penalties amounting to some €5 million, or some 7 percent of the value of the project’s investment, of €60 mln. Some 95 percent of the project has been sold. The last building, which has 271 apartments, was sold by the Israelis to the Norwegian Romania Invest investment fund.
“We must still work on connecting the apartments to utilities in the first apartment building, and once this is completed we must decide if we want to go ahead with the second building. The contract we have with EuroHabitat offers us the option of pulling out of the second construction,” explained Arie Bercovich, General Manager of Danya Cebus Romania, general entrepreneur presently working on Planorama, EuroHabitat’s first investment on the local market.
The Israelis have postponed their plans for the second project, Planorama II, which was to include 12 buildings with 4,000 apartments, and cost some €600 million.
