“The transaction confirms the company’s development plans. The newly-bought land will host a large realty project which will consist of over 1,000 spacious apartments and generous green space,” said Mateescu, adding that Impact wants to strengthen its top position among real estate developers operating on the Romanian market.
Impact announced Tuesday that it bought, for EUR9 million, a third of the right of ownership over nearly eight hectares of land located in Bucharest, on the Barbu Vacarescu Boulevard. It also said it paid the full price when the contract was signed from the money raised following a share capital increase.
Impact raised a little over 80 million lei (EUR18.1 million) in a public stock offering to its shareholders ended July 29 and used the proceeds to increase its share capital and further finance its projects.
In June this year, Impact started the construction of the second stage of the Greenfield project in Baneasa, which consists of some 4,600 apartments, of which, nearly 1,000 are expected to be completed by the end of 2015. The first 100 units are to be delivered in December 2014.
Impact Developer&Contractor is 49.04%-owned by Romanian entrepreneur Gheorghe Iaciu and 16.35%-owned by Adrian Andrici.
The company reported a loss of RON42.4 million in 2013, narrower from about RON75 million in the previous year.
In Bucharest, Impact last traded down 2.22%, at RON1.32 a share.