“2008 and 2009 will be record years for us,” BSR Europe Ltd. (TASE:BSR) controlling shareholder and president Nachshon Kivity told “Globes” today. Kalman Sufrin is the company’s other controlling shareholder and chairman. Kivity’s prediction is based on the fact that the company will complete several projects during this period. “We’ll continue to be profitable in 2006, and focus on business and the steady expansion in activity.”
Last Friday, BSR Europe announced an investment in its third project in Romania. In a combination deal, BSR Europe and BSG, controlled by Benjamin (Benny) Steinmetz, will buy in equal shares a ten-acre lot in Bucharest. The sellers will be eligible for 12% of future revenue from the project, but no less than €6 million.
If BSR Europe and BSG are satisfied with due diligence, they will build 1,000 housing units on the site with an aggregate space of 105,000 sq.m. Construction will cost €65 million, according to preliminary estimates.
“As with previous projects in Romania, we’re cooperating with Steinmetz,” said Kivity. “The lot already has a building permit, and I predict we’ll complete the project by the end of 2009. 30% of the housing units will be pre-sold, and the rest will be sold during construction. We anticipate no problems selling all the apartments.”
This is BSR Europe and Steinmetz’s third project in Romania. The partners’ activity in Bucharest reached €250 million over the past nine months.
Published by Globes [online], Israel business news - www.globes.co.il - on April 16, 2006
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