Largest Romanian lender buys insolvent Silver Mountain residential project for EUR 50 mln

BCR, Romania’s largest bank by assets, recently bought the Silver Mountain real estate project in Poiana Brasov mountain resort for a total of EUR 49.7 million, according to insolvency firm Euro Insol, which organized the sale. The Silver Mountain project is the main asset of INR Management Real Estate SRL, a firm that went insolvent in August 2013 and then was declared bankrupt in January 2014. BCR is the firm’s largest creditor with some EUR 86 million in claims. Euro Insol is the legal administrator of the real estate company. Silver Mountain is a residential project which consists of 171 apartments, 176 parking places, 2 commercial spaces and a multipurpose building which contains a restaurant, a club and a spa & fitness centre. These come with 206,500 square meters of extra land. The asset was first put up for auction on May 9, 2014, for a starting price of EUR 53.4 million plus VAT, but no one showed up. The second auction was on May 23 and had a starting price of EUR 40.1 million plus VAT, which is the price that BCR paid. On the same auction, BCR also bought a piece of land of almost 60,000 square meters with frontage to lake Snagov, for EUR 2.29 million, which also belonged to INR Management Real Estate SRL. “This is a new start for Silver Mountain. Only BCR has the force, determination and interest to give this project a new dimension and to develop it to its real potential. Together with the retail sale of the 171 apartments, the bank will also finance through a special commercial vehicle, the construction of a hotel,” said Remus Borza, managing partner of Euro Insol. Andrei Chirileasa, andrei@romania-insider.com