Iulius’ South African partner steps out of controversial Romexpo project

Romanian businessman Iulian Dascalu's would-be partner in the controversial real estate project Romexpo in Bucharest, South African group RMB Holding, re-allocated EUR 50 million previously earmarked for the project and will distribute the money as dividends, Economica.net reported.

Romania's president Klaus Iohannis returned the so-called Romexpo Law - critical for the EUR 2.5-3 billion project - to the Parliament for review.

Separately, the European Commission was notified about the project and is reportedly analyzing its compliance with EU regulation. RMB Holding, the owner of RMH Property, which holds stakes in Atterbury Europe and Atterbury Romania, announced to its shareholders that EUR 50 mln would be returned to their accounts.

The EUR 50 loan to Atterbury Europe was to be converted into shares, but legal issues arose over the Romexpo land.

As such, the RMB board will return the capital committed to Atterbury Europe and the Iulius group, intended for the development of the project in Bucharest, as a special dividend," the company announced on April 9 on the Johannesburg Stock Exchange.

In November 2018, RMH Property entered into a partnership with Atterbury Europe and Iulius Group to develop the Romexpo project.

At that time, RMH invested about EUR 40.3 mln in founding Atterbury Bucharest and allocated another EUR 104 mln for the period 2019-2021.

RMH Property also extended a loan of EUR 50 mln for the project. Atterbury Europe held this commitment in cash and under the control of RMH Property until the clarification of the status of the land at Romexpo.

(Photo: Ccir.ro)