Development land For Sale in Cluj, Romania

Development Land containing c.20,500sqm for sale in Cluj, Romania.

Purchase Price = 20,500sqm @ €120/sqm = €2,460,000

Description.

Ø An opportunity to secure development land containing c.20,500sqm has been presented through legal channels.
Ø This property contains 2 separate plots of land and is being sold as one unit.
Ø The land has yet to be placed on the Open Market (planned to be launched within the next 2/3 months), and an opportunity exists to secure the lands prior to public placement.
Ø The property consists of the following:-

o 20500sqm (approx) of land with an access of c.67m.
o It has PUZ- Urbanistic Zonal Plan for Underground +5 floors.
o Based on POT-35% and CUT 0,7 there is 35,875 sqm of development potential.
o Allowing for a figure of 15% for common spaces, and an average unit size of 55sqm, this would result in c.550 units being constructed.
o Cost savings can be achieved by eliminating underground development for Car Parking etc, due to the availability of a further lands on the site of c.13,325 sqm. (i.e.) land left for green spaces and car spaces from the 20500sqm.

Ø The land is located in Baciu at c.10 min drive from City Center of Cluj.
Ø Development precedent has already been set in this area with 14 apartment blocks under construction on a site adjacent to the property being sold. The development commenced late last year, with the completion term on 2 phases: August 2008 and April 2009.
Ø Sales agents for the property under construction have informed that 100% of Phase 1 of the development is sold and 50% of Phase 2. Sales of 20 units per week are currently being achieved (not verified), and they expect the development to be fully sold within a short period of time.
Ø The development (Excelsior Residential Project) includes 420 apartments, in 14 blocks, a Supermarket and a Spa Centre.

The Site Details

Ø The site is rectangular in shape, which allows for easy development.
Ø The topography of the site is very good from a development point of view. The site slopes gently towards the main road and village, which is good from a services and utilities point of view.
Ø Infra-structure (roads etc) are currently being built by the existing development on the property adjacent to this site. Arrangements can be made to allow for use and access, as is normal in this type of development situation. An estimation cost would be c.60000Euro for Infra-structure (roads and utilities).




Property Location & Ammenities

Ø Stunning view of the Hoia-Baciu Forest and the community.
Ø Easy access with no traffic.
Ø South orientation with sun all day,
Ø 5 km distance to Cluj Railway, Train Station.
Ø 350 m to the Buss Station,
Ø 150 m to the local Medical Clinic, Chemistry, County Council, Church, School, Restaurant.
Ø Sale prices being achieved in the area is now c.€120/sqm.

Points of Note.

Ø The Excelsior’s Developer (adjacent site) has already made approaches in relation to entering into a joint venture or sale by using their existing properties as part of the sale. Owners of the property have advised that they are interested in the land being sold primarily on a cash basis.
Ø From brief enquiries and subject to verification, it has been established that “turn key” completion of standard construction of residential units is estimated at €500/sqm cost for developers, and retail sales of €900+/sqm are being achieved from off the plan sales.
Ø Potential developer profit on a completed development is estimated at c.€7m to €10m depending on the length of time the development took to complete and final sale figures being achieved. This would represent a return on capital invested of c.35% to 40% over a maximum period of 2 years.
Ø Tax on Profit for company is 16% in Romania and VAT at 19%.

As can be seen, this deal represents a substantial opportunity to secure development land in a proven area, prior to the project being placed on the open market.