Cordia Romania, a member company of the Futureal group, started the construction works at the second phase of Parcului20 residential project in the Expozitiei area, in the north of Bucharest. Reception with the authorities for the first phase of the project is completed and the company started sales for the second phase of the project in September 2020.

"We continue our plan to develop quality residential projects in Romania, one of the key markets of the Futureal group in Europe," said Mauricio Mesa Gomez, country manager of Cordia Romania and Spain and member of the Board of Directors of Cordia.

„The first phase of the Parcului20 is currently sold in proportion of over 70%, we signed over 30 reservations for apartments in the second phase and we started the construction works for the second phase of the project, consisting of 220 apartments for the middle-high residential segment. The market outlook is favorable, despite the situation created by the COVID-19 pandemic, due to the demand and facilities implemented by the authorities. One of the most important such facilities for the residential segment is the amendment of the law by which the 5% VAT is applied for apartments with a maximum price of 140,000 Euros, recently promulgated by the President of Romania, Mr. Klaus Iohannis and which will enter into force in January 2021. This amendment to the previous law, which imposed a price cap of 100,000 euros, will allow more people to buy more spacious and high-quality apartments”, he added.

The Concelex company, which built the first phase of the Parcului20, was appointed general contractor for the second phase of the project, following a tender in which four other construction companies participated.

Parcului20 is one of the first smart projects in Romania, all apartments in the project being equipped as standard with state-of-the-art smart home systems. The private garden of over 3,000 square meters, charging stations for electric cars, parking spaces for bicycles, yoga garden and equipment for calisthenics are among the main differentiating factors of the project, which is designed to ensure a quality housing experience and Energetic efficiency.
The total investment in the Parcului20 residential project amounts to 40 million euros. In addition to this investment, Cordia Romania has an investment plan worth 120 million euros for the development of residential projects on five plots of land purchased in the central-northern part of Bucharest, which will generate the medium-term development of 2,000 apartments.

In addition, Cordia Romania has allocated a budget of 40 million euros for the acquisition of land in Bucharest. Thus, the total budget of Cordia Romania allocated in the medium term reaches the level of 200 million euros.

The investments for the expansion on the real estate market in Romania will be partially financed using a percentage of the funds obtained from the bond issue within the Growth Bond Financing System of the National Bank of Hungary. Cordia issued bonds worth € 135 million over 7 years in November 2019 and bonds worth € 105 million over 10 years in September 2020 to finance its international expansion.

As part of Futureal Group's strategy to increase its investments in Europe, Cordia acquired almost 93% of the shares in Polnord, a residential development company listed on the Warsaw Stock Exchange, a 20% stake in Argo Properties NV, a Dutch company active in the field of residential rental and large-scale urban regeneration in Germany and the British company Blackswan Property, a developer specializing in the field of private rental (Private Rental Sector) in Birmingham.

These acquisitions have increased Cordia's portfolio of land for residential development. Over 14,000 apartments can be developed on these lands. (Source: Cordia)