British Westhill to invest EUR 500 million in real estate projects by 2012
31 July 2008
British developer Westhill, currently developing Crizantema mall in the southern city of Targoviste, plans to invest EUR 500 million in local projects in the next five years, the company said. The company is currently negotiating the acquisition of six hectares of land in Ploiesti, where it intends to develop a mixed residential and office space project. Westhill also plans to build three other malls in the coming years, two in Romania and one in neighbouring Bulgaria, Westhill Romania Manager Andrei Panculescu said.
In 2006, the company acquired some 10 hectares in the city of Ploiesti, north of Bucharest, for EUR 14 million. ''The plot was sold to British Lewis Charles investment fund, which was set to come up with the funds for a commercial center, in partnership with Westhill. However, the fund is currently facing financial problems, so the developer has borrowed EUR 100 million from a U.S. bank,'' the company’s Chief Operations Officer, David Palmer told Business Standard.
The project is expected to begin this fall, while the cost is estimated at EUR 140 million, Palmer said. Its market value is estimated at EUR 300 million, with a 7% yield, according to Panculescu.
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