Located on the banks on Tei lake, close to Pipera and Barbu Vacarescu office areas, Laguna Residence is a project initiated by Spain’s groups GEA 21 and Prasa in 2007, ahead of the crisis onset, when sales prices for the 268 apartments planned for the first phase topped EUR2,000/sqm.
The Spanish groups managed to attract several tens of buyers and got funding of above EUR10 million from Spanish bank Caixa, but the developer of the housing compound, GEA International Development, went insolvent in 2012.
“From the first minute I could fancy myself living and working here, when I come to Bucharest as part of my activities as technical expert in international arbitrage,” Radu Ionescu told ZF. He owns 28% in Laguna Residence.
According with Trade Registry data, GEA International Development is now controlled by Global Project Associated GPA SARL, registered in Lausanne, Switzerland.
The first phase, involving 150 apartments, will be completed in June-July, according with Dan Soldea, a stakeholder in real estate developer CND Residence Investment and also in Laguna Residence.
Until the project was halted, investments revolved around EUR28 million. For the six blocks of 150 apartments, developers expect additional investments worth EUR12-13 million, VAT not included, will be necessary. Part of expenses will be covered by subcontractors attracted in the project in exchange for a package of around 40 apartments.
The prices of apartments in the project range between EUR1,100 and EUR1,400/sqm. For the second phase, involving 118 apartments, developers consider they will be able to ask for bigger prices.
For around one year, the number of building sites in Bucharest has started rising as funding costs have plummeted and prices have stabilized.
(English version by Catalina Apostoiu)