Europa Capital has over 300m euros for real estate projects

Investment management company Europa Capital, which has assets worth almost four billion euros in its portfolio, is set to become involved in real estate projects worth over 300 million euros on the local market, with the investments to be made over the next two or three years.
The company’s first three projects will be developed in Bucharest, Timisoara and Cluj and entail investments worth approximately 160 million euros. Europa Capital, a company based in London, at the end of March announced its intention to set up of a fund (Europa Emerging Europe Fund), which is tailored for Romania, Bulgaria, Ukraine, Croatia and Serbia and targets projects worth over 600 million euros in these countries.
“At least half of the investments of the Europa Emerging Europe Fund will be destined for the local market. In fact, we have already entered partnerships with various companies for two logistical projects in Bucharest and Cluj, as well as a mixed project in Timisoara, which primarily consists of residential space. The cumulated value of these projects stands at around 160 million euros,” explained Tim Norman, Chief Executive of Europa Capital Emerging Europe.
Norman took over the management of the fund, which is dedicated to emerging markets, in May this year, after working for 14 years for the European Bank for Reconstruction and Development in countries such as Kazakhstan, Russia and also Romania, where he was involved in providing funding for the Hilton hotel.
The company holds stakes of over 50% in each of its investments on the local market. The project in Timisoara, which could also include office and retail spaces, is the group’s most significant development in Romania.
“For the Cluj project, we will start construction this year, while for the Timisoara and Bucharest projects, works will start halfway through next year. We are constantly scrutinising the market for opportunities, but we would have to come across an extraordinary project in order for us to get involved in it this year,” added the manager of Europa Capital.
The company had projected a four-year period for completion of the investments and another four years to sell the properties. However, Norman believes both phases will be completed within four or five years.