Sema Parc owner: Banks have blocked lending until yearend

Businessman Ion Radulea, developer of Sema Parc real estate project in Bucharest via River Invest, says banks have suspended funding for real estate projects until the end of the year due to the international crisis, and the residential market is blocked. The investment in the Sema Parc project amounts to 1.3 billion euros, and the execution period has been extended to 15 years, instead of 10, due to the postponements generated by the crisis. Consequently, the company will put off construction for residential projects until the time when mortgage credits become available again. “The residential market has a adopted a wait-and-see attitude due to the tightening of lending conditions, with potential clients putting off purchasing a home. We will probably not start construction works for the residential segment until mortgage lending resumes,” Radulea says. The residential project will have a built surface area of 300,000 square metres, equivalent to 3,000 homes, according to the latest available data.