Adama: We'll deliver over 2,000 apartments in 2009

Adama, a developer on the real estate market, is currently carrying out projects to build 12,000 apartments in Bucharest and in another eight cities in Romania, which entails investments worth 1.5bn euros. Adama, which mainly develops housing complexes, owns around 35 plots of land with a total area of around 1.5 million square metres.
“We are focusing on expansion outside Bucharest and are now present in another 8 cities in Romania, where we spotted favourable growth opportunities (…),” stated David Flusberg, the company’s chairman and founder.
The number of apartments planned by Adama is divided almost equally between Bucharest and the other cities. Housing developments account for 90% of the company’s activity, with most projects destined for medium to high income buyers.
As a result of the rise in land and construction materials prices, apartments for average-income buyers sell for 1,200-1,600 euros per square metre, whereas two years ago, when Adama started operations on the domestic market, the average price ranged between 600 and 1,000/square metre.
So far, Adama has sold 500 apartments, which mainly accounts for ongoing projects. “The year 2009 should see massive deliveries, when we expect to complete 2,000 apartments,” says Flusberg.
According to the latest information, the main shareholder in Adama is US fund Tiger Global, which is also involved on the IT market, after it acquired a majority stake in Neogen. Tiger Global owns 44% in Adama.
The second largest shareholder (with 20%) is investment fund Immoeast Austrian, the most important player on the domestic real estate market. Private equity fund RomRe, controlled by the Jesselson family and the Lehman Brothers, also hold stakes in Adama (11.3% and 5%, respectively).
“Attracting several institutional investors has boosted our image, and the two due diligence processes we’ve been through this year (when Immoeast and Lehman Brothers bought into Adama i.e.) have revealed the company’s power (…),” stated Adama’s chairman. At present, Adama has a team of around 100 individuals. Besides the headquarters in Bucharest, the firm also has offices in Timisoara, Brasov and Iasi. “Investments will not stop here. We are seeking intelligent methods of raising new funds through private partnerships, as well as from the capital market,” specified Flusberg.