A land plot of 45,000 sqm in the Fundeni area in Bucharest will be auctioned in July. The plot is being targeted by property developers for the potential that its represents. In addition, it’s seen as one of the last large plots available in that area of Bucharest. It is located on the lake shore and is divided into nine parallel plots, each with an area of 9,000 sqm.
The starting price for the auction is €11.4m. After an investment of €500m, the Icelandic real estate company Askar Capital acquired the plot in 2007 in order to develop a real estate project. Following the crisis, the land lost half of its value, and the developer didn’t believe that the weak market demand justified continuing the project. At that point, Commercial Romanian Bank (BCR), the main creditor, called in the loan.
