Romanian real estate group launches real estate investment trust

Impact Developer & Contractor (IMP), the only real estate developer in Romania listed on the Bucharest Stock Exchange (BVB), has launched a private placement by which it wants to raise at least EUR 2 million with a special purpose vehicle that invests in apartments and parking lots.

This type of investment vehicle is also known as a real estate investment trust (REIT).

Some 48 million shares are offered to 150 selected investors at a fixed price of RON 0.218 per share. The issue can be increased up to 100 mln shares, depending on the demand, Economica.net reported.

Impact says that Star Residence Invest already owns 14 apartments and 26 parking plots leased under four-year contracts, which generate an average yield of 11% per year. The apartments were developed by Impact and are leased to construction companies within the group for their workers.

Local brokerage firm BRK Financial Group manages the private placement, which ends on December 18, 2020.

Subsequently, the investment vehicle's shares will be traded on the Bucharest Stock Exchange. Star Residence Invest aims for the listing to take place within a month after completing the private placement so that the shares will start trading in January.

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