Italian businessman Giorgio Griessi, who owns two plants in Romania in the iron-and-steel sector, is going to build a residential complex worth 23 million euros in the Chinteni area, 6 kilometres away from Cluj-Napoca.
Griessi owns a 6-hectare plot of land in this area and intends to build 25 four-storey blocks of flats. According to the investor, each block will have an area of around 500 square metres and there will be four flats on each storey.
"The decision to invest in real estate was made amid the fast development of this market. We chose Cluj because it is a city that has a little of everything, as well as very many young people wanting to buy a house," explained Giorgio Griessi, who provides the funding of the project.
He also said he planned to launch a real estate project on the residential segment in Baia Mare during the forthcoming period, with the investor currently looking for available land. Griessi could not offer further details about this project, but he specified it would include ten-storey blocks of flats.
Griessi also said all the flats, which are currently priced at 65,000 euros, will have three rooms and a living area of 88 square metres.
"The project will be carried out over a period of five years, but the first four blocks will be ready in November 2007. The blocks due to be finalised next year have already been sold, and if demand continues to be this high, we may finish all the 25 blocks earlier than anticipated," specified Giorgio Griessi.
"Work on the infrastructure will start in ten days at the latest, and during the first half of next year we will start building the first four blocks.
The complex will also include commercial and leisure space beside the living space," the backer of the project also said.
The Italian investor started off in the Romanian iron and steel sector in 1995, but has since expanded his interests. This is the second time Griessi has invested in the Romanian real estate market, after initially investing in a complex in Cluj, entailing an investment of approximately 2.5 million euros.
"We built two blocks in a residential area of Cluj-Napoca city, which have been already sold," Griessi also said.
The Italian businessman owns two companies in Romania, Euro Siag and Conferom, which both operate in the iron-and-steel industry.
According to the management of the two companies, the entire production in Romania is destined for the foreign market, predominantly Arab countries, England and Germany.
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