The developer RomReal, which owns about 130 ha of land across Romania, does not have enough funds to pay off a €11.6m loan to Alpha Bank, according to the website Wall Street. If a resolution cannot be reached soon, the company could enter into a default situation with the bank. The principal payment matures on Nov. 30.
RomReal said it is having a hard time selling off assets given the dire straits of the country’s real estate market.
Alpha Bank had already given RomReal a two-year extension on repaying the loan, which was was originally granted in 2007. RomReal has 14 plots in Bucharest, Constanta and Brasov, valued at €26m.
