Romania: Raiffeisen finances EUR 25 million real estate project in Corbeanca

13. Juli 2006, 00:00

Raiffeisen Bank Romania might finance by the end of the year real estate projects worth a total of EUR 350...

Raiffeisen Bank Romania might finance by the end of the year real estate projects worth a total of EUR 350 million. It has so far granted real estate credits of EUR 80 million, senior deputy chairman Marinel Burduja announced, quoted by Nine OClock.

Commenting on the Corbenca Forest residential project, which is developed by Marr Capital, Burduja said that it  is only a part of the real estate investment volume, "which will exceed EUR 1 billion this year and will increase in coming years.”

The bank finances all the costs of the project, estimated at EUR 25 million. According to Burduja, Raiffeisen would also like to grant credits for house purchases there.

Corbeanca Forest will include 100 villas, of two types, with built areas of 220 sq. m and 294 sq. m respectively and parcels of 500 – 700 sq. m of land. The price is EUR 850 per sq. m, VAT not included. The complex next to Corbeanca Lake will be built in three stages, scheduled for completion in March and September 2007 and March 2008.

Marr Capital plans another project in Corbeanca, which will have 200 villas and its construction will start in 2007. In the area, Raiffeisen is also interested in financing infrastructure projects carried out by the municipalities of Corbeanca and Balotesti.

Marr Capital is also interested in investments in the office space segment. “For the time being, renting office space in central areas is cheap. We are waiting for rent levels to go up and we will get involved in this segment as well,” Marat Safin, chairman of Marr, told the newspaper.

Marr group is registered in London and operates in the real estate markets of the Baltic States and Russia.

Raiffeisen International, mostly owned by RZB (whose share is 70 per cent), operates banking subsidiaries in 15 countries of central and eastern Europe.

RZB has subsidiaries in many Central and Eastern European countries, namely Albania, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Moldova, Poland, Romania, Russia, Serbia, Slovakia, Slovenia and Ukraine. The shares of these so-called network banks are held by RZBs subsidiary Raiffeisen International Bank-Holding AG which is listed at the Vienna Stock Exchange.

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