Spanish "Armada" targets real estate market

Spanish real estate companies have been buying a lot of land in the Capital and in the big cities to develop real estate projects, according to players

in the industry. Companies such as Riofisa, HI Grupo, Grupo I, Fadesa, Agofer intend to develop real estate projects on the local market, having already established themselves in Poland and Hungary. The only Spanish companies to have announced they have projects on the Romanian market are Hercesa, Prasa and Invarsa, on a market dominated by Austrian, Greek and Italian players. “Spanish investors are interested in the potential of the Romanian market compared to the Spanish one. The market here resembles the Spanish market 15 years ago, when the real estate field began to grow heavily, Alejandro Solano, manager of operations for Romania of Hercesa Inmobiliaria told ZF. Hercesa is to build a 1,600-apartment district on Basarabia Avenue and an extended-stay hotel by converting the former Cismigiu hotel, a project estimated at 6-7 million euros. “We want to invest in Romania due to the enormous growth potential of this market,” says Rodrigo Sanchez, Riofisa”s official in charge with communication. The company has had an agreement with Tiriac Investments since the autumn of 2005, to develop real estate projects in the capital city. ZF