Land owned by the Hungarian developer Ablon Group Romania was valued at the end of June at €30m, €17m less than the valuation state at the end of 2011.
Since 2008, the land has lost nearly 70 percent of its value, according to current valuations, writes WallStreet.ro. Ablon Group purchased the land between 2007 and 2008, but it began falling in value during 2008 as a result of the financial crisis.
In late 2008 the developer’s land was valued at €104m, but by December 2011, this had fallen to €47m, and in June 2012 to €30m, reports WallStreet.ro.
Ablon Group has six plots in Romania, totaling nearly 700,000 sqm: two in Pipera, one in Mogosoaia, and three in Bucharest.
The company plans to keep just 225,000 sqm of its more than 700,000 sqm land bank. Other investments by the group in Romania remain frozen until market conditions improve, reports WallStreet.ro.
