Where did Cortina project's money go?

Part of the buyers of apartments in Cortina Residence project of Bucharest, the biggest failure of a housing complex domestically, are accusing the project managers of poor management and of embezzling the funds earmarked for the construction of the Baneasa area project. The developer went bankrupt with debts of over 25m euros after having built just one three-level basement and the structure of three storeys of the block due to include 270 apartments. The project was set to be developed by Heitman and Cefin firms, with 114 apartments having been already sold at the moment construction works were halted. “All the sums spent on this project were monitored by an independent project auditor appointed by the banks that funded the project and our partner Heitman. (…),” says Stefano Albarosa, CEO of Cefin. Cefin representatives maintain works were halted after Heitman fund decided to give up development, at which time Volksbank and Investkredit, the biggest creditors, suspended funding. The project firm, Cefin Real Estate Alpha, is undergoing bankruptcy procedures and assets should be tendered by BDO, the company’s legal liquidator, in the following months.