World-Class Residential Development in the Heart of Bucharest
Shikun and Binui, Israel’s biggest property and infrastructure group, and Red Sea Group, a specialist in the hotel industry, joined forces in 2006 to launch projects in Romania. Favi Stelian, CEO, explains, “We believe in Romania’s long-term potential.”
The company began its City Point Aviatiei residential project in Romania in 2012, handling every aspect in-house, from purchasing the land to financing and construction. The first of a planned four buildings is complete and the second is around halfway finished. Favi Stelian points out, “This project has exceeded our expectations. Tenants purchased 70% of the units in the first building even before it was finished and we continue to sell around seven apartments every month. There is clearly demand in the Romanian market for high-quality developments like this one.” Red Sea Romania will also build around 2,000 homes on 12.5 hectares of land it owns in the Aviatiei district.
Ideal location and vast park
The City Point complex is ideally located near Bucharest’s top business, cultural, shopping and entertainment venues and includes spacious, world-class apartments as well as a 4,000-square-metre park with a playground. “By investing in such a large park along with the residential complex, we are demonstrating that we are here in Romania to stay,” Favi Stelian says.
Shikun and Binui and Red Sea Group believe the Romanian market has entered a growth phase. Favi Stelian points out, “Now is the time to invest in Romania. For our first project, we provided our own financing because Romanian banks were not willing to invest, but now we have many banks at our door offering loans and we are eager to work with them. Some global companies develop one project here and then leave, but we plan to build three or four additional residential projects here in Romania in the next five years.”
While the company has already been approached by multinationals interested in purchasing apartments for their expat management and employees, they are willing to work with more multinationals with long term housing needs in the future. Favi Stelian points out, “It is a great investment for these international companies and in exchange we get good, reliable tenants. Plus it is not easy to just move and begin to do business in a new country, so we are here to facilitate this process and work with these companies to help.”