Although this year’s state budget said the state planned to earn RON706 million from the sale of government buildings, RA-APPS’ budget, approved at the end of July, provides only RON296.2 million in expected earnings.
This spring, the authority held a number of open auctions, but only managed to sell a few properties. Several real estate companies put the value of the 600 flats offered by RA-APPS in Bucharest at around EUR90 million. Many properties had been put up for sale in previous years, unsuccessfully.
RA-APPS is in charge of around 650 government residences and offices, more than 75 villas and over 250 hectares of land, inherited from the former state apparatus of the Communist Party and now occupied by current or former dignitaries, or even their relatives.
In addition, the authority also manages dozens of commercial areas, farms and tourist units, of which the Triumf hotel in Bucharest, the Mara hotel in Sinaia, Clubul Floreasca, the Scrovistea complex and the Palat Snagov complex are among the most valuable.
These properties, used by public institutions, embassies or political parties, are worth only EUR226 million by the state’s reckoning, which is based on 2004 prices, far below their current market value.
Real estate consultants have said recently that setting up a fund, floated on the stock market, to manage these assets, or transferring the service to private firms, would be better than selling the properties separately, ensuring greater transparency and more profit for the state.