CEE real estate developer and investor Plaza Centers has frozen its developments in Romania, representing an investment of EUR 2 bn in the country, newspaper Ziarul Financiar has reported. Plaza Centers' head of Romania Luc Ronsmans told the paper that the company's eight projects in the country have been put on hold due to the lack of funds.
CEE real estate developer and investor Plaza Centers has frozen its developments in Romania, representing an investment of EUR 2 bn in the country, newspaper Ziarul Financiar has reported. Plaza Centers' head of Romania Luc Ronsmans told the paper that the company's eight projects in the country have been put on hold due to the lack of funds.
The London-listed property company is building the Dambovita Center project in central Bucharest as well as the Miercurea Ciuc shopping centre. Ronsmans said the developments could be postponed by a further two years.
To date, Plaza Centers has invested around EUR 250 mln in the Romanian market for the acquisition of a number of land plots in the cities of Iasi, Timisoara, Slatina, Hunedoara, Miercurea Ciuc, Constanta, and Targu Mures as well as for the purchase of a 75% stake in the Dambovita Center project.
The company reported a net loss of EUR 28.4 mln in the first half of this year while gross revenues plunged to EUR 7.7 mln from EUR 80 mln a year ago.
