Romania 1Q Big Property Deals Dn 58% YY To EUR50M - C&W

Romanian big realty transactions dropped 58% to EUR50 million in the first quarter, the only property deal being the acquisition of Fabian Romania investment fund, Cushman&Wakefield consultancy firm said Sunday.

Big property transactions in the first quarter of 2008 stood at EUR119 million, down 68% from the corresponding period of 2007.
 
For 2009, property deals are seen at some EUR500 million, half from approximately EUR1 billion reported in 2008, said Costel Florea, head of Cushman&Wakefield Romania investments department.
 
"A few opportunist funds analyze the market and are willing to buy properties whose investors have liquidity difficulties or are forced to sell. The remaining investment funds are in standby. It is very difficult to estimate the volume of transactions for the entire 2009 year, but we believe the overall value will reach between EUR500 million - EUR600 million," Florea said.
 
Black Sea Global Properties Limited (BSGP), owned by Romanian oil tycoon Dinu Patriciu through Rompetrol Holding, completed the takeover of Fabian Romania investment fund in the first quarter of 2009, for an estimated price of EUR50 million.
 
In December 2008, BSGP launched a EUR37.8 million offer at EUR1 in cash for each of the company's shares to overtake Fabian. End-January, BSGP held a 99.1% stake in Romanian property fund Fabian Romania.
 
Fabian owns shares in 11 real estate projects on the Romanian market with a total market value of EUR76.3 million.

Mediafax