Businessman Constantin Constanda, the owner of the French Village, which he received from Bucharest City Hall in exchange for Bordei Park, is in talks to sell the biggest part of the plot to develop a new residential, retail and office complex.
The project has got the attention of major investment funds, some of which are already present on the Romanian market, sources on the real estate market told ZIARUL FINANCIAR.
The deal is worth 100-120 million euros and entails approximately three hectares of land, which accounts for most of the current site.
"I haven't decided what to do there yet. I will only start to think about what to develop next year. I got some offers, but I am not interested in selling this project, considering this is not a good year to sell, because the market is going down," Constantin Constanda told ZF. The French Village is the last remaining large plot in the hottest spot in Bucharest, between Soseaua Nordului, on the bank of Herastrau Lake, and Nicolae Caranfil Street, five minutes away from Piata Aviatorilor. Prices in the area range from 3,000 to 4,500 euros per square metre, depending on the development potential of a particular plot.
There are already buildings 8 to 10 storeys high in the area, and the current owner expects to be able to get the necessary zoning permits to increase the number of floors so that buyers can develop the projects they have in mind, the quoted sources say.
Given the prime location, penthouses could sell for as much as one million euros.
The French Village was built by French company Bouygues together with the World Trade Center complex in 1994 with a state secured loan, but became the property of the City Hall after the loan was not repaid.
The sale will go through if the buyer manages to secure the necessary permits for over 8-storey buildings.
The success of the project relies on the vertical expansion of buildings, as the plot is now populated by around 40 flats in two-floor villas, which are let out for about 3,000-5,000 euros per month.
"As far as tenants are concerned, some contracts have already expired, while for others I have agreed to an extension. When I take down the villas on this lot, the future project will have already been clearly decided," Constanda adds.
Constanda got the French Village in a swap with the Bucharest City Hall, a deal that was sealed in March 2008. He received it in exchange for Bordei Park, which he bought from two individuals, who initially bought it from Dumitru Tudor and Eugen Lincaru, who had been given this park as compensation for the land on which the French Village sits, which could not be given back.
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