Ablon Group, a leading real estate owner and developer in Central and Eastern Europe, announced yesterday that it has completed the acquisition of a new 40,000 m[sup]2[/sup] plot of land located in the Pipera District of Bucharest for a purchase price of EUR 18.5 mln. Ablon has obtained building rights for 120,000 m[sup]2[/sup] on the plot and plans to develop the site for residential housing, offices and a retail complex. The company plans to construct approximately 1,000 apartments, taking up 72,000 m2, with offices and retail space being constructed on 28,000 m[sup]2[/sup] of space. The project is expected to generate total revenues of EUR 185 to EUR 205 mln.
Ablon Group, a leading real estate owner and developer in Central and Eastern Europe, announced yesterday that it has completed the acquisition of a new 40,000 m2 plot of land located in the Pipera District of Bucharest for a purchase price of EUR 18.5 mln. Ablon has obtained building rights for 120,000 m2 on the plot and plans to develop the site for residential housing, offices and a retail complex. The company plans to construct approximately 1,000 apartments, taking up 72,000 m2, with offices and retail space being constructed on 28,000 m2 of space. The project is expected to generate total revenues of EUR 185 to EUR 205 mln.
Earlier this year, Ablon announced its acquisition of a first plot in the Pipera District of Bucharest where it is planning approximately 4,000 apartments and 41,000 m2 of office and commercial space. The company aims to complete all of its current development projects in Bucharest within five years.
The Pipera district of Bucharest is located in the northern suburbs of the city and is considered to be one of the most exclusive residential areas in Bucharest. Property demand in Bucharest still exceeds a relatively low supply stream. Romania has one of the fastest growing economies in Europe with GDP rising 7.7% year-on-year in 2006 and an expected 6.2% for 2007. This compares with an average 2.6% in the Eurozone.
Uri Heller, Founder and Chief Executive of Ablon, commented: “We are pleased to announce our intention to develop more high quality properties and commercial space in Bucharest, one of Central Europe’s most dynamic real estate markets. This additional development, close to the American International School, in the prestigious Pipera district, will cement our presence in Romania and greatly enhance our existing asset portfolio in Budapest and Prague. The move reflects our strategy to diversify our presence carefully by investing in the cities and segments which show the highest potential in the region. We are confident that this will secure steady growth and future revenue streams for Ablon Group and create value for our shareholders.”
