Businessman Ion Tiriac, thought to be the richest Romanian, is now focusing on the real estate business, which has become the strategic direction for the expansion of his business.
Tiriac now has an estimated half a billion euros” worth of real estate developments in the pipeline, from luxury residential complexes in the Baneasa Forest to class A office buildings and commercial projects, as well as the expansion of the auto showroom network of his group. “The Tiriac group of companies will develop real estate projects worth approximately 500 million euros over the next four years. Real estate is now Tiriac group”s strategic development direction,” Anca Ioan, CEO of Tiriac Holdings, told ZIARUL FINANCIAR. The company controls either directly or indirectly Ion Tiriac”s banking, insurance, car leasing and real estate operations.
Tiriac”s real estate projects will be partly self-funded, with the rest of the money coming from banking loans or funding contributed by business partners, Tiriac Holdings” representative says.
The real estate sector in Romania is now rated as one of the most attractive business opportunities in Europe, with foreign and local investors engaging in a regular hunt for property and projects, lured by the yields that are still high compared with other markets.
“We are in talks for logistic real estate projects, worth hundreds of millions of euros,” adds Anca Ioan, who did not care to provide further details.
The most important project developed by the Tiriac group is a luxury residential complex located right in the Baneasa Forest, and its value is estimated at approximately 300 million euros.
The “La stejari” residential project entails construction of 4-storey blocks of flats with attics, which will comprise 602 flats with a built surface area between 90 and 500 square metres.
“The project will be completed in three years and is now in the phase when the permits and consents for infrastructure – roads and utility networks are being secured. Work should start in mid July, and the first phase will be completed by the end of next year,” says Catalin Merlusca, general manager of the real estate development company Fergus Construct, part of the Tiriac Group.
The residential complex is being built on a ten-hectare plot of land bought in 2004.
“The location is excellent, every flat has a view of the Baneasa Forest, they are soundproof and have outstanding finishes,” the officials of the Tiriac group say. Another residential project in development is located in central Chitila, on the location of a former ceramic plant.
The project estimated at 60 million euros will see a complex of 488 homes built for the middle class. The flats will be distributed over 48 buildings, each standing four or five storeys tall. The complex will be developed in partnership with German company LEG on a 6.5-hectare plot of land.