The Perla Majestic group of firms is expanding its real estate investments outside the resort of Mamaia, after allocating 15 million euros in funds for the construction of 270 holiday suites in the holiday resorts of Jupiter and Neptun, explained Mohammad Murad, president of the group.
The real estate portfolio of Perla Majestic Group (PMG) boasts 800 suites located in seaside resorts, which could potentially bring millions of euros' worth of transactions one day. The group also operates the 4-star Majestic hotel in Mamaia, the 3-star Majestic Jupiter and Perla hotels and 3-star hotel Majestic Olimp.
"The four hotels I own alone, including the land and buildings, are worth over 50 million euros. So far, the investments made and the acquisition of the hotels have amounted to some 30 million euros. I am not selling the hotels in Jupiter and Olimp, although both resorts are much less developed than Mamaia. These investments are paving the way towards a period of development, which eventually will come to these resorts. Within the next two years, things will change and investments will move away from Mamaia towards other locations," believes Murad.
This is one of the main reasons why the company has decided to plan investments worth 15 million euros in 270 holiday suites located in Neptun and Jupiter by 2008.
"For the resorts of Neptun and Jupiter, we have identified that there is an equal demand for holiday suites (i.e. as in Mamaia) that is why we will start building two projects set for completion in July 2008. We will build a 70-suite project in Neptun, on an 8,000 square-metre area of land acquired for 60 euros per square metre in 2003, and a 200-suite project in Jupiter, on a 10,000 square-metre area of land," said Murad.
In Jupiter, the land was originally acquired in 2001 at a price of 20 euros per square metre.
" I think the total investment will amount to 15 million euros, 50% of which will be financed through a credit taken out from Piraeus and Raiffeisen Bank. We don't know what we will do with these projects for the time being, whether to sell them, or manage them ourselves. The prices of suites will definitely rise, so we would rather wait," said Murad.
The reason behind shifting the focus of development towards the other Romanian seaside resorts, outside Mamaia, is the lack of a concrete strategy for the resort.
"This year will be the last year to see any developments on the strictly tourist side of the Mamaia resort. Constanta Town Hall has already given its approval for the construction of 100 buildings in Mamaia, which will in fact turn the resort into nothing more than a district of the city of Constanta(...)", added Murad.
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