Impact seeks another $20m

Real estate developer Impact Bucharest’s Board of Directors will seek its shareholders’ approval for a new loan worth $20 million. The company needs the money to finance part of the Green Field real estate project. The project entails building 1,700 homes in Bucharest, with the total costs estimated at $120 million and $140 million in revenues expected over the next seven years. The company chairman Ioan Popp says the residential complex will also include leisure facilities and commercial spaces. Impact’s shareholders had previously approved a $1.5 million loan for this project in May. The stock market analysts say the loan could boost Impact’s profits but are not certain whether the company’s financial situation allows it to take such a loan. Impact’s equity had come to total 431bn ROL ($13 million) at the end of Q1, while its debts amounted to 318bn ROL ($9.7 million). In order to make the Green Field project happen, Impact is to buy SQRW Development (Romania) SRL, which holds about 43 ha of land in northern Bucharest in the Pipera-Tunari area. ZF