Papalekas bought three plots of land and two apartments from insolvent builder Lufin Construction for EUR5 million.
The most important of the distressed assets he acquired in this deal is an almost 3,000 square meter plot on Soseaua Nordului near the Herastrau Park in northern Bucharest, one of the most expensive residential areas of the city. Prices in the area stood at EUR3,000 to EUR4,000 per square meter during the boom days, which means this plot alone would have cost about EUR10 million back then.
Papalekas bought it for EUR5 million as a bundle with two other plots in Voluntari (north-east of Bucharest) and Theodor Pallady Boulevard (in the eastern part of the city), as well as two apartments in the northern area of the city.
The seller, Lufin Construct, had previously worked with Papalekas on the 600-apartment UpGround complex that the Greek businessman was building in Pipera (north of the city).
Lufin Construct, a company owned by businessman Victor Badescu, posted more than EUR100 million revenue in 2009. By 2011, its revenue was down almost 70% and the builder filed for insolvency in January 2012.
Ioannis Papalekas could not be reached for comment by the time the story was ready for posting.
(English version by Loredana Fratila-Cristescu)