The constructions and real estate development company, Impact, is planning to raise a further 12 million euros from the capital market to fund several real estate projects. It intends to establish a mortgage company to provide financing to buyers of the houses it builds.
Impact is planning an issue of new shares for 151bn ROL (3.9 million euros) to be offered to its shareholders. It will issue 75.5 million new shares at 2,000 ROL per share, a third of the price on the Stock Exchange, as proposed by the Board of Directors. The issue will be debated at a General Meeting of Shareholders on December 23.
Besides the new share issue, the company intends to issue 8 million euros’ worth of bonds, which will be due in four years. The interest rate is supposed to be indexed to the rate of the euro on the London interbank market (EURIBOR) plus 6.5%. At the current EURIBOR rate, Impact will pay an annual rate of around 9.5%.
“We want to fund three housing developments. We want to renew support for the Azur 1 project in Bucharest, start works on the Roua complex in Ploiesti and the Azur 2 project in Bucharest,” Dan Ioan Popp, Impact’s chairman and main shareholder, told Ziarul Financiar.
The shareholders will also discuss the takeover of Delta Holding Building Real Estate SRL, which owns land in the Voluntari area in the north of Bucharest, where the development of the Azur 2 project is supposed to start.
“This is a company with land in the Voluntari area. We are talking of a 40,000 sqm tract of land where we want to build about 150 houses,” Ioan Popp says.
Impact will begin construction on the first residential complex in Ploiesti this month or early next year as soon as the local authorities issue the first permits. “The Roua complex we are going to build in Ploiesti will have 120 houses on a 35,000 sqm plot of land,” said Popp.
Impact will participate in setting up a mortgage company that will provide funding to homebuyers. “We want to participate in building a mortgage company in which we will hold 20-25%. We are now in talks with several possible partners,” added Popp.