RREEF, a division of Deutsche Bank Asset Management, a real estate giant with assets worth almost 50bn euros, owns stakes worth 100m euros in the housing complexes FeliCity and Rose Garden, owned by real estate developer Globe Trade Center (GTC), which entail overall investments worth above 270m euros.
RREEF, which recently set a new record on the domestic real estate market after it acquired a project in northern Bucharest for 340m euros, owns 30% in FeliCity, a project close to Baneasa forest, which entails investments worth 190m euros, and 50% in Rose Garden in Colentina, an 83m-euro investment.
"We agreed to share the profit from these projects with Deutsche Bank because of its powerful name, which helped us in various situations, such as our relationships with banks," stated Shimon Galon, CEO of GTC.
Investments by Deutsche Bank were conducted at the start of the projects, before the powerful group concluded the acquisition of UpGround project.
The two projects include approximately 2,000 homes, of which around 1,200 have been sold, mainly during last year, with around a quarter of them being in the hands of speculative investors.
After the market settled in the first half of this year, the rate at which the houses developed by GTC were sold also slowed down.
"Last year I had the feeling I was living in heaven. Investors used to buy 30-40 apartments without even knowing where the land was. I was happy, but this was not normal. The market is now filtered and only end-users are left now; the people who really need apartments," explains Galon.
GTC launched a third housing project, Garden of Eden, which will include 2,000 apartments close to the American School and require investments worth 260m euros.
The company is involved in other segments of the real estate market as well, and earlier this year announced plans for a network of 20 shopping centres under the Galleria brand.
Meanwhile, plans were downsized because of the large number of projects announced countrywide. "If we reach 12-15 malls, I'll be happy. We're targeting another city for another Galleria mall, Galati, where we'll develop a project with a lettable area of 32,000 square metres, in partnership with Cefin," states Galon.
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