Romania's richest man, Dinu Patriciu, whose fortune is estimated at 2.5 billion dollars, says he does not trust the domestic capital market and expects steep declines in the coming period.
"I do not invest on the Romanian capital market. When the fifth-largest bank in the States (Bear Stearns i. e.) collapses, you want me to have faith in the Romanian market? I'd rather invest in hedge funds, derivatives and a variety of shares on other capital markets, which can offer better medium and long-term yields than a market that is experiencing a crisis," said Dinu Patriciu, chairman and chief executive of the Rompetrol petroleum group.
He says the value of the capital market in Romania is now twice as high as its actual value. Patriciu owns two companies that are listed on the Bucharest Stock Exchange, Rompetrol Rafinare and Rompetrol Well Services, about which he suggested not to buy shares into from the capital market.
The businessman also reiterated his statements about the decline of the domestic real estate market, and also announced a 200 million-euro project, which is scheduled for development near Casa Presei in Bucharest over the next two years.
"Look at the volume of transactions since the beginning of the year and compare it with the volume twelve months ago. Real estate developers continue to ask for high prices, but it seems no one is willing to pay them," Patriciu said.
As far as his own real estate project is concerned, Patriciu says the main purpose is to build Rompetrol's new headquarters, several office buildings and 1,000 homes.
"In 1991, I bought 150,000 square metres behind Casa Presei. Over the next two years, we will build Rompetrol's new headquarters, several office buildings and 1,000 houses. The value of the project amounts to 200 million euros and will be implemented in partnership with a major real estate f
