At €400-500/per sqm for land in the Iuliu Maniu area, the transaction is estimated to be worth some €30-37 million, according to the current value of land in that area, sources from the company told Business Standard.

“The land will be sold at auction, at the current market price, and main targets are real estate developers. Legal proceedings to organize the auction will be finalized in March,” the sources said.

The company will relocate its production activities to the Bucharest West logistics park, near the Bucharest-Pitesti highway, where it has already acquired 50,800 sqm.

Turbomecanica is listed in the first tier of Bucharest's bourse, with a capitalization of €57.33 mln. In 2006 the company had €29.6 mln in turnover.

The lack of land needed to develop major real estate projects has led investors to buy properties previously home to old factories, such as Semanatoarea (developed by River Invest), UMEB and Laromet (both owned by Africa Israel), bread factories Titan (developed by Hercesa), and Dambovita (owned by Central Park – Niro Group).