One United Properties buys 10,000 sqm land plot in Bucharest for new low-rise residential project

One United Properties (BVB: ONE), a leading green investor and developer of residential, mixed-use and commercial real estate on the local market, said that it acquired a land plot of 10,710 sqm in Bucharest for a new low-rise residential development called One City Club. The land is located near Floreasca district and Tei Lake.

“This transaction expands our portfolio of land for residential development and is in line with One United Properties strategy focused on investing in premium, sustainable real estate opportunities located in very good areas of Bucharest, which will significantly contribute both to the city’s development, and to the company’s revenue and profit,” said Victor Căpitanu, co-CEO One United Properties.

One City Club will have approximately 200 apartments organized in low-rise compounds, on a total area of about 37,000 sqm, of which 27,000 sqm above ground and 10,000 sqm underground. The project will also integrate a commercial area with facilities and services for the community, such as a gym and swimming pool, green and recreational areas, a golf room, and various services.

The developer said it is currently in advanced negotiations for ten future developments, as well as it is in early discussion or negotiation stages for more than 20 other developments. The ten developments currently in advanced negotiations primarily focus on medium and medium-high income residential properties.

“If signed, approximately 10,000 apartments with more than 1 million square meters above ground of gross buildable area would be developed on these lands by One United Properties over the next seven years. After they are developed, these developments could generate a gross development value of more than EUR 2.3 billion and a potential gross profit for One United Properties of EUR 900 million. Approximately 10% of the development would be office and commercial spaces. The company’s focus is to invest with priority in Bucharest, where most of the pipeline is located,” reads the company’s press release.

One United Properties kicked off on June 27 the share capital increase operation, through which the company intends to raise up to RON 470 million to be invested with priority in new real estate developments. In the first stage of the operation, which runs from June 27 to July 26, the shareholders who held ONE shares on May 20 and consequently received ONER01 preference rights on May 23 can subscribe to the share capital increase operation. The rights are not tradeable.

The maximum price per ONE share in Stage 1 of the share capital increase operation is RON 1.42. In addition, a shareholder must hold 7.8 preference rights to subscribe for a new ONE share. According to the developer, the final price per share will be set after the closing of Stage 1 and Stage 2. If the final price is different from the maximum price, the difference will be returned to the investors’ accounts upon closing the process.