Engel East Europe has unveiled plans to develop a further 390 residential units in the Romanian capital
The AIM-listed Central and Eastern European residential property developer has bought a 190,522 sq ft (17, 700 sq m) plot of land in the upmarket Bucharest suburb of Sisest. It estimates that projected sales of the development will generate E46m (£31m).
The total purchase price of the land is approximately E4.4m (£2.9m). Of this, approximately 10% was paid upon signing the agreement, an additional 10% will be paid upon satisfactory completion of the due diligence process and the remaining 80% will be paid upon fulfillment of several conditions by the seller.
Jacob Engel, founder and executive chairman, said: ‘This is Engel’s fourth project in Romania. Romania is a market which we have always forecast as one of the most promising areas for residential development and therefore, as part of our main focus, we are further expanding our presence there.’
The deal brings Engel’s total number of development projects to 10. The schemes have a combined projected sales total of around E500m (£338m). As well Romania, the company has various developments in Hungary, the Czech Republic, Poland, Bulgaria and Serbia as well as operations in Germany and Canada.