Small projects in central areas could be the solution for problem-riddled developers

 
“The Dagesh Group’s strategy is to build small projects in city centers, which will protect us from being stuck with unsold homes in times of crisis, such as the one we are in right now.  Residential projects in periferal areas with hundreds of apartments are at great risk and subject to high loan exposure, while centrally-located projects are safer. The concentration towards the center is like an insurance policy,” according to a declaration for Business Standard by Shlomo Abecassis, Manager of the Israeli Dagesh Group. 

Present on the Romanian market since 2003, the Israeli company has completed four small projects with various partners.  It is presently finalizing the Platinum Center office building and the Morilor Residence in the northern Bucharest Timpuri Noi area.  These projects required a total investment of some €38 million. “We are in the process of obtaining urban planning approval for a project to include a residential area with 34 homes and a 100-room hotel.  We could begin construction on this project this year,” added Abecassis.  The project will require a €15-18 million investment, and the company is willing to provide 50 percent of the value of the project from own sources. For this project, Dagesh acquired a piece of land one year ago in the central Plevnei Street area, for €2,300 per square meter.