AIM-listed Fabian Romania Property Fund announced on Wednesday that its joint venture development company, Phoenix Park, has agreed a fixed-price contract with Mivan Kier for the construction of apartments at the New Town development in the east of Bucharest.
AIM-listed Fabian Romania Property Fund announced on Wednesday that its joint venture development company, Phoenix Park, has agreed a fixed-price contract with Mivan Kier for the construction of apartments at the New Town development in the east of Bucharest.
The project will involve the construction of more than 635 apartments in two phases with an estimated gross development value in excess of EUR 120 mln. The total costs, excluding land, will be approximately EUR 80 mln. The apartments will provide 100 m2 of space and are being pitched at middle-income families. Building permits have been obtained and below-ground construction work has started with the first apartments due to be completed in the summer of 2008.
In July 2006, Fabian Romania paid EUR 5.75 mln for a 50% stake in the development company. Mivan of Country Antrim, Northern Ireland, through its Romanian operating company Ropotamo Expert SRL is acting as the development manager for the project as well as Fabian's joint venture partner.
