Spanish group postpones construction of 144 apartments

Spanish CP Grupo company, which entered the Romanian market in
2007 planning to build a 144-apartment block in Colentina district
of Bucharest, has postponed it and decided to renegotiate the loan
contracted from the Spanish bank La Caixa. “Early in 2009, the
company decided to halt the project (Lakeland in Colentina i.e.),”
reads an announcement of the CP International Real Estate, the
local subsidiary of the Spanish group. The company together with
the La Caixa bank decided to restructure the 17 million-euro loan
contract and sign a new one for only 3.1 million euros. The Spanish
company bought a 2,200 square metre plot of land on which it
planned to build a 15-storey tall block comprising 144 apartments,
with a three-level underground car park. The total investment in
the project had been put at 25 million euros, and the completion of
the apartments had been scheduled for 2010. Over the past year, as
a result of the steep decline in sales of homes, projects totalling
more than 10,000 homes in Bucharest have been frozen, while
developers that had not begun construction works postponed them.