New Romanian real estate investment company draws EUR 3.6 mln financing from local investor

Encore Capital Trust (ECT), a newly-launched Romanian real estate investment company, has drawn RON 17.7 million (EUR 3.6 mln) from several strategic investors in its first round of financing. Thus, the company’s capital reached RON 18.2 million (about EUR 3.7 mln).

The list of investors who participated in the first round of financing includes several successful Romanian entrepreneurs, such as Dan Sucu, owner of the Mobexpert home décor retailer, Marius Hanganu, the co-founder of Tremend Software – one of the most dynamic local IT companies, acquired by Publicis, Iosif Szavuj, the founder of telecommunication operator Ines Group, Silvana Berciu – founder of a group of companies that includes BDG Import and Loft, Ahmet Buyukhanli, the developer of residential project Cosmopolis and Cristian Becheanu, founder of the Art pharmacy chain, acquired by Dr Max.

Encore Capital Trust plans to capitalize on investment opportunities in the local real estate market and bring an annual return for its shareholders of over 20%. The company’s investment policy will focus on six lines of business, based on which the company hopes to bring above-average returns to its shareholders and investors.

The main lines of activities will be the acquisition of residential units in projects in early development stages, at a preferential price, mezzanine investments, which involve capital participation in the development of a project and the capitalization of the completed product, the acquisition of real estate assets in order to obtain a monthly return, and iBuyer acquisitions on the secondary residential market.

Encore Capital Trust was founded by Cosmin Savu-Cristescu, managing director of Redport Capital group, an important local real estate developer, and Andrei Sârbu, CEO of real estate consultant SVN Romania, one of the main profile companies active in Romania and the one with the most extensive activity on the residential segment.

The management team is led by Robert Butoi, CFA, as Chief Executive Officer. He was previously the local director of Crowdestate AS – one of the largest real estate crowdfunding platforms in Europe. The Chief Investment Officer is Bogdan Gubandru, an experienced real estate consultant specialized in investment transactions. He is also the Head of Investment within Crosspoint Real Estate / Savills. The management team includes Amalia Dirle as CFO, after a career of over 12 years on the banking sector, Raluca Dobrișan as Investor Relations Manager, and from Elena-Diana Nedelcu, as Head of Legal.

Encore Capital Trust will also have a redoubtable Advisory Board, consisting of Liviu Arnautu, founder and partner of the asset manager Atlas Asset Management, Anca Galatescu, strategic macroeconomics consultant, Traian Briciu, president of the National Union of Romanian Bars and partner of Pop Briciu Craiu law firm, Adrian Codirlasu, vice-president of CFA Romania and DOFIN associate professor at ASE, Ruxandra Jianu, partner at Biris Goran Law Firm, Bogdan Iliescu, founder of Bogdan Iliescu Corporate Finance, Bogdan Belciu, co-founder and partner of the consulting company Valorem Business Advisors and Marius Hanganu, co-founder of Tremend Software.