Sat, Feb 11 2012

Engel limits operations in Bulgaria and Romania

Thu, Mar 26 2009 13:04 CET

byNick Iliev

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Engel limits operations in Bulgaria and Romania

The managing board of Engel East Europe has decided to concentrate on projects in the Czech Republic, Hungary, Poland and Serbia in light of current economic developments, and limit operations in in Bulgaria and Romania only to existing projects, the company said in a filing to the London Stock Exchange, where it is listed.

Engel East Europe is among the biggest property developers that have taken advantage of the property boom in Central and East European property markets over the past decade. The company is active in Poland, the Czech Republic, Hungary, Romania, Bulgaria, and Serbia, with future expansion plans set for Central and Eastern Europe.

Engel has reported that as of January 1 2009, it expected to complete approximately 862 separate apartments and start construction on another 458 units, all of which are joint venture projects with local partners.

Given the deteriorating economic climate, the company has decided to prioritise its resources on selected projects, hence their decision to temporarily halt new developments in Bulgaria and Romania so that other projects in central Europe can go ahead. 

Engel has one major project in Sofia under construction consisting of 55 units valued at about 3.5 million euro.

Last year, Engel finished the Vitosha Palace and Panorama residential projects. The two projects combine for 210 apartments, valued jointly at 15.4 million euro.

The Vitosh Palace, a closed residence complete with fitness and sauna facilities, lies on the Tsar Boris Boulevard opposite the Pavlovo borough and very close to Vitosha Mountain. The project consists of offices as well as various apartments and studios ranging from 60 to 120 sq. m with parking places and garages provided.

The Panorama project, in the Vitosha Mountain's foothills, comprises 46 boutique apartments. Engel has said it was close to finalising its sale of this complex, but the buyer remains unknown.

However, the Engel board decided last July to halt its Gorna-Banya project in the Vitosha Mountain foothills.

Source: propertywisebulgaria.

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