Practic shareholders approved the sale on December 9.
Onix Residence Bucuresti, a company held by businessman Mohammad Murad, will pay EUR2.6 million excluding VAT, EUR500,000 (plus VAT) of which upon the signing of the contract and the rest of EUR2.14 million in no more than five months after the sale.
Hagag will pay EUR8 million for the land, in two equal instalments, one upon the signing of the pre-contract and the other upon the signing of the contract.
Practic SA has about 35,000 square meters of retail space. The company’s largest shareholders are Radu Dimofte, (48%), International Business & Trading Corporation (32%) and Wellkept Group (12%), according to Trade Register data.
Tenants include grocery retailers Mega Image and Carrefour, Sensiblu and Help Net pharmacies, betting parlor operator Maxbet and several banks – ING, Idea Bank, BRD and UniCredit.
Practic SA has a capitalization of RON487 million and its shares have gained 32% since the beginning of the year, amid only RON99,925 worth of transactions on the Bucharest Stock Exchange.
The owner of Onix Residence Bucuresti, Mohammad Murad, is one of the largest hotel owners in Romania and Onix Residence has residential complexes in northern Bucharest and in Mamaia Nord.
Hagag Development Europe is the first developer that decided to make significant investments in heritage buildings to seismically retrofit and convert them into luxury residential or office buildings.
(English version by Loredana Fratila-Cristescu)