AIM-listed residential property developer Engel East Europe has made its debut investment in Romania, it was revealed today.
Engel East Europe has bought three adjacent plots in Bucharest for the development of approximately 550 homes. The company estimates that the projected sales of the project will total approximately E60m (£40.5m).
The total purchase price of the land is approximately E4.6m (£3.11m). The company has already paid E1.5m (£1m) for one plot, which was sold with planning permission for 80,730 sq ft (7,500 sq m). The remaining E3.1m (£2m) will be paid upon receipt of planning permission for the two additional plots. Under terms of the deal, if planning permission is not issued within 60 days, Engel will be awarded a 50% discount, or given the option to withdraw from the deal.
Jacob Engel, founder and executive chairman, said: ‘Romania is a market which we have always forecast as one of the most promising areas for residential projects and therefore part of our main focus. This newest acquisition complements our vision of further expanding our activities in both existing and new markets, taking full advantage of the considerable growth opportunities for residential property development in the central and eastern European region.’
As well as working on projects in Romania, Engel East Europe has various developments in Hungary, the Czech Republic, Poland, Bulgaria, Serbia & Montenegro as well as operations in Germany and Canada. It has a development pipeline of around 12,000 residential units.