The real estate company Equest Balkan Properties could invest 206 million euros in commercial, retail and industrial projects in the Balkans with a focus on Romania and Bulgaria. The funds were obtained through a bonds issue which was oversubscribed. The realtor announced that it has a few opportunities in accordance with the company’s investment strategy. Two funds managed by the company have already signed exclusive contracts for 14 real estate projects and for an important project in the retail sector.
Equest Balkan Properties Limited targets commercial investments with high efficiency rates and with a potential to appreciate the capital.
Besides retail, office spaces and industrial facilities, the companies could also invest in hotels and parking lots, which also provide high efficiency rates. The output of real estate investments in Romania is well beyond the European average but investors should consider developing large projects to maintain the same results, said Alexandru Nitescu, Projects and Investments Department coordinator for real estate agency Regatta.
According to the real estate agency, the residential sector has recorded the highest profit margins in Romania, followed by the retail development sector and the office buildings sector.
But investors have preferred to maintain holdings in land so far, rather than develop large scale projects. Low activity has been recorded by the commercial centers sector due to high land prices.
For the next few years, real estate agencies’ representatives consider investors will be ever more drawn to the residential sector, which now faces an acute lack of quality projects, especially in the medium and medium plus segment.
Other countries targeted by the Equest fund are Albania, Bosnia, Croatia, Macedonia, Serbia and Turkey.