* The investment fund is abandoning the plan to invest 45 million Euros in a retail park
Investment fund Equest Balkan Properties has announced that it has put up for sale a plot of land of 32,900 sqm in Ploieşti, at a price of EUR 70/sqm. The group will make approximately 2.74 million Euros from the sale.
According to a press release sent by the EBP to the London Stock Exchange, the plot in question is part of a larger project which the fund abandoned. "Previously evaluated at approximately EUR 154 /sqm (over six million Euros), the property is being put up for sale at a price of 170 Euros/square meter", the document states.
EBP holds 70% of the project, a stake which it acquired in 2007 and for which it paid 3.9 million Euros, according to that year"s report. The company intended to invest over 45 million Euros in the construction of a retail park, a project which was subsequently abandoned.
At the same time, EPB blames the difficult economic conditions in Romania, which affect the occupancy for Equest"s commercial centers, as well as the rent revenues. Equest holds two operational retail parks in Romania, Vitantis Retail Park in Bucharest and Moldova Mall of Iaşi.
Vitantis, which was opened in September 2008, had a difficult year and failed to meet its potential, according to the company, whereas Moldova Mall represents the worst performing asset in Equest"s portfolio, according to the company, mostly due to the difficulties its customers are facing, as well as due to its vertical construction, with the stores being located on five floors and a cinema on the sixth floor, which is now closed.
Last year, Equest Balkan Properties made 8.07 million in Romania from rentals. The total revenue from rentals was 12.86 million Euros, with the operating expenses for the properties amounting to 4.78 million Euros.
Ovidiu Vrânce
