Romanian investment fund SIF Banat Crisana pays EUR 33.6 mln for land in western Bucharest

The real estate division of investment fund SIF banat-Crisana, SIF SPV TWO, made the payment for the purchase of the 6.2 ha of land that consists of the premises of the former tobacco company Tutunul Românesc, now owned by the insolvent company Interagro, Profit.ro reported.

Businessman Ioan Niculae, the founder of Interagro, intended to build on the land a complex that included three office towers with 36, 30 and 14 floors, residential areas, a hotel and a private hospital.

The payment was operated after the judicial administrator cleared all the obstacles - namely objections raised by Tabogo Property, a company indirectly controlled by Canadian businessman Michael Topolinski.

The land is valued at EUR 33.59 mln, without VAT, and is located in the heart of the new Orhideea-Grozăvești real estate development pole in the western part of Bucharest. If it is eventually completed, the deal is likely to become the biggest land deal of the year.

The land is also subject to a mortgage in favour of First Bank Romania (formerly Piraeus Bank Romania), which registered RON 223 mln of claims and is supposed to get RON 163 mln (a sum that matches the price of the land) under the recovery procedures.

SIF Banat-Crișana was also involved in the biggest land transaction of 2020 when it paid EUR 32.7 mln to South Korean company Doosan for the IMGB industrial platform in southern Bucharest. Meanwhile, the investment fund has teamed up with property developer Prime Kapital and retailers Dedeman, Kaufland, Lidl and Altex for the sale of a large part of the land of the former IMGB platform.

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