Economy of Romania : http://en.wikipedia.org/wiki/Economy_of_Romania

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ROMANIA: Economy Minister Estimates 8 pc Economic Growth in 2006


17.01.2007

Vosganian presented in Vienna the macroeconomic developments in Romania last year.

The Minister of Economy and Trade, Varujan Vosganian, described 2006 as the best economic year for Romania, with the highest growth rate of the GDP - eight per cent, Rompres reports.

Vosganian presented on the panel of the ministers at the Central and Eastern Europe Forum in Vienna, 16-17 January, the macroeconomic developments in Romania last year.

The minister of Economy reminded that Romania was preparing a new foreign investment act to meet the growing interest of foreign investors after the country’s EU accession.

The Investment Director of the European Bank for Reconstruction and Development (EBRD), Kurt Geiger, stated that 2006 had been a good year for the banking sector in Central and Eastern Europe, with a growth of 6.2 per cent and a turnover of EUR 4.9 bn. The EBRD official found that the regional business prospect might reach EUR 11 bn.

‘Rhetoric or Reality’ is the motto of the forum in Vienna, with over 1 000 delegates from Central and Eastern Europe. The other Romanian officials attending are Minister of Finance Sebastian Vladescu, BCR Executive President Nicolae Danila, presidents of other commercial banks, representatives of the capital market and of the business community.

Vosganian estimated that FDI in 2006 reached approx EUR 7.2 bn. The Romanian Agency for Foreign Investments estimated for 2006 a level of foreign direct investment of EUR 6.2 bn, without including the privatisation of BCR, for which the state cashed EUR 2.2 bn last autumn. BNR’s revised data for 2005 showed FDI worth EUR 5.23 bn, a level close to the estimated one, namely EUR 5.19 bn. The United Nations Conference on Trade and Development has recently estimated that the foreign direct investment in Romania increased last year by 34.1 per cent, up to USD 8.6 bn (approx EUR 6.8 bn).

On the other hand the National Bank of Romania (BNR) estimates that Foreign Direct Investments (FDI), portfolio investments and the money send home by Romanian workers abroad reached last year EUR 9 bn, said in his turn Cristian Popa, vice-governor of BNR, also in Vienna.

Deutsche Bank forecasts 6 pc economic growth in Romania

EUR 5.2 bn. is the value of the foreign investment estimated to enter Romania this year by the Deutsche Bank specialists, quoted by the ‘Ziarul financiar’. But not all is good news: the unemployment, inflation and shortfalls in the economy will grow, according to the same analysts. In fact, the economic growth estimate is below the Romanian official prognosis that expects a growth of the GDP by 6.5. In 2006, the economy grew by 7.5 – 8 per cent, having reached 7.8 per cent in the first nine month of the year. The foreign investment might grow to EUR 5.2 bn, exceeding the threshold of EUR 5 bn for the forth consecutive year. Last year, the FDI came close to EUR 8 bn. at the end of the first ten months, almost the double of the amount in 2005. Capital entries are calculated also taking into account the EUR 2.2 bn paid by the Austrian Erste Bank to the Romanian state for the majority stock in BCR.

In point of deficits, Deutsche Bank believes that the budget deficit in 2007 will be 3.2 per cent of the GDP. Last year, the budget had a surplus in the first 11 months and shifted to a shortfall only in December, closing the year on a deficit of 1.1 per cent of the GDP. Last year, In 2007, the private sector will continue borrowing money on foreign markets and the state debt, including the internal one, will drop as a percentage of the GDP, say the Deutsche Bank specialists. The internal public debt will drop to 15.3 per cent of the GDP by one per cent than in 2006.

East Capital: Romania might be the new revelation for foreign investors


Romania might be the new revelation for foreign investors in the coming period, with an evolution comparable to that registered by Poland and the Baltic countries after the accession to the European Union, according to Peter Elam Hakansson, the president of East Capital investment company. “Romania has big chances, in the years after the accession, to follow the development frames of the Baltic States or Poland. The Baltic States had a spectacular evolution, and, although in Romania reforms came into force with some delays, if the current development rate is maintained, as well as the will to become a true European country, Romania will experience an impressive development in the following years,” said Hakansson in a communiqué.
Source: Nine o'Clock

+ 4-5 bln Euro officially sent home by the Romanians who work abroad - it sounds good ! :banana: :cheers:

Saint-Gobain’s investment in Calarasi

http://www.arisinvest.ro/level1.asp?ID=429&LID=2

Saint-Gobain Group has officially opened a new float glass production unit in Calarasi. ....

The EUR 100 million factory constructions took 18 months to be built and it is to produce transparent float glass mostly utilized in constructions. The production unit capacity amounts 600 t of float glass daily, 50 percent of it being exported towards South Eastern Europe as well as Germany and Poland.

The Saint-Gobain project created 215 new jobs, and, indirectly an additional 1000 more throughout subcontracting as proven by Saint-Gobain previous activity in similar undertakings.

“I’m glad to see that we have multinational companies willing to invest in such considerable projects especially in areas, underprivileged from this point of view up to now. Throughout Saint-Gobain investment at Calarasi we are witnessing a positive spin of from an economic and social point of view” stated Mr. Calin POPESCU – TARICEANU - Prime Minister of Romania.

“Our factory will definitely be most beneficial to the Calarasi County. The production capacity and the high quality of our products will strengthen our position as leader on the South Eastern European market. Moreover we expect this to be an example for more investors to come and take advantage of the area high potential.” said Mr. Pierre-Andre de Chalendar – General Director of Saint-Gobain.

New significant investment in Ploiesti

Calsonic Kansei builds a factory for producing automotive component parts in Ploiesti. The new company, Calsonic Kansei Romania SRL, will invest 100 million Euro in the next 5 years, creating 1000 new jobs.


The Japanese company Calsonic Kansei Corporation announced officially that will make a significant investment in Ploiesti Industrial Park. The value of this investment will be 100 million Euro and will create 1000 new jobs in 5 years. The new production capacity will produce automotive components such as: air condition and cooling units for Nissan, Renault, Audi, BMW and Honda. The new investment is the biggest “Greenfield” foreign direct investment in the automotive industry for Prahova County.

The factory will operate beginning with the second semester of 2007 and 75 % of the products will be exported. This is the second Japan investment in Ploiesti Industrial Park after Yazaki and represents a new successful project monitored by ARIS and assisted together with the local authorities from Prahova County.

Logan exports up 36.7%

Autor: Ziarul Financiar | Data: 24 Ian 2007

The growth pace of exports of domestically produced cars was faster than growth of the sales of the imported vehicles in 2006, according to data provided by the APIA (Automotive Manufacturers and Importers Association). Logan exports, which went up 36.8% against the level seen in 2005, reached over 76,000 units, accounting for over 95% of the total of domestically produced cars exported, according to data provided by the APIA. Overall, exports of domestic cars went up 36.4% to over 80,000 units, surpassing the growth pace of imports, which rose 34.5%, to 137,252 units. Aside from the Logan Sedan, Automobile Dacia shipped almost 3,000 units of Logan Station Wagon to Bulgaria alone, although this model had just been launched in October.

cool thread, thanx for opening it. I'll be a regular visitor :okay:

Daewoo Shipbuilding wins $500 mln deal to build five container ships

Mangalia (Constanta) based Daewoo Shipbuilding and Marine Engineering Co. announced that it had won a $500 million order to build five container ships for a German shipping company. The deal calls for Daewoo Shipbuilding to deliver the ships, which can hold 4,700 20-foot standard containers, to Hamburg Sud by 2010, the company said. The vessels will be built at Daewoo Shipping's yard in Romania

Cuprom pursues biggest Romanian investment abroad


Cuprom Romania, one of the leading producers of electrolytic copper, continuous cast copper rod and draw wire in Eastern Europe is close to making the biggest Romanian investment abroad. Cuprom intends to acquire assets and licences put up for sale by the Serbian state as part of the privatisation process of the copper producer RTB Bor in Serbia. It made the highest bid, 400m dollars (some 304m euros), and is set to negotiate the terms of the contract with the local authorities. Cuprom is supposed to take over surface and subterranean copper mines in Bor and Majdanpek, as well as a facility for smelting and refining copper ore.

Funding should be arranged through international banks Merrill Lynch and Deutsche Bank.

Patriciu on the hunt for Serbian Petrom

Rompetrol petroleum group, controlled by businessman Dinu Patriciu, has submitted a letter of interest for the acquisition of the controlling stake in NIS, Serbia's biggest petroleum company, market sources told ZF.

The Rompetrol Group, boasting annual turnover revolving around 6 billion dollars (5 billion euros), is entering the race for the purchase of the stake put out for sale by NIS (Nafta Industrija Srbije). The Serbian company is among the last state-run petroleum assets in South-Eastern Europe. NIS is thus a natural target for regional players such as OMV (Austria), MOL (Hungary), PKN Orlen (Poland) or Rompetrol.

..... http://www.zf.ro/articol_106934/patriciu_on_the_hunt_for_serbian_petrom.html

I remind you that Rompetrol Group already took over, last year. the main independent petroleum products distributor in France, Dyneff ... http://www.zf.ro/articol_75995/rompetrol_buys_france__s_leading_independent_oil_products_distributor.html

Draft law on Cernavoda (Constanta) new reactors handed out to cabinet


BUCHAREST - After Minister of Economy and Commerce, Varujan Vosganian, signed, at the end of last week, the decision on the setting up a commission in charge of negotiations related to the construction of reactors three and four from Cernavoda nuclear-electric plant (Constanta), he informed yesterday that the Government The Bill reads that the two reactors will be developed by a project company that will include an independent electricity producer. Private companies will own together at least 30 per cent of the capital, which is approximately EUR 700 M, and Nuclearelectrica participation will be 25-30 per cent, representing the two reactors, the preparing works and services.

The funds for the construction of the two units will be secured by the issuance of binds into capital markets so that the companies which form the project company must have a proper rating. “There are enough requirements for covering the investments needed. I cannot say yet what are those companies”, according to the Minister.

13 companies and consortia were admitted for the negotiation stage in relation to the construction of the two new reactors: AES Corporation USA, Alro Slatina, consortium TESS Conex – ASAM – Iasi, consortium Ansaldo – Italy – AECL Canada, consortium Unit Investments Luxembourg – Dogan Enerji Yatirimlari / Dougas Holding Turkey, Electrabel Belgium, Electrica Bucharest, ENEL Italy, E.ON Energie Germany, Gabriel Resources Canada, Iberdrola Spain, KHNP South Korea Republic and RWE Power Germany.

The construction works are scheduled to start during the first part of next year and completed in 2013, the value of the project being estimated to EUR 2.2 bln. On the other side, the completion of works at reactor two is scheduled for the second half of this year, after starting unit 2, the plant being expected to supply 18 per cent of the national electricity production.

Romania Gets 4 Offers In Sale Of Daewoo Automobile

Four firms have submitted letters of intent for Romanian carmaker Daewoo Automobile, which the Black Sea state wants to sell this year, the country's privatisation agency AVAS said on Tuesday. The government, which relaunched the sale of the plant last month, has said it hopes to wrap up the process by June, after it bought back the majority stake from its bankrupt owner in 2006.

... General Motors, Ford, Tata (India), Chery (China) .... the buyer would have to ensure a minimum yearly output of 300.000 units ...

http://in.news.yahoo.com/070123/137/6bfmw.html

IT&C Romanian market value up 24 pc in 2006

published in issue 3850 page 9 at 2007-01-16

Bucharest - Romanian industry of communication and information technology (IT&C) reported in 2006 a total turnover worth EUR 6.7 bln, 24 per cent more than 2005 and four times higher than the level from 2000, according to the annual research made by the Institute for Calculation Technique (ITC).

“Defined as the ensemble of IT hardware, telecom hardware and electronics, software and IT services and telecom services, the Romanian IT&C industry continued its strong upward evolution in 2005 and 2006, stimulated by domestic consumption, exports and foreign investments, due to the general economic growth and to nearing the EU accession,” stated in a communiqué the research’s coordinator Mircea Vuici.

The telecommunication services sector holds a share of almost two thirds, 62 per cent of the total business volume, namely EUR 4.1 bln. Although it has a lower share, the software and IT services represent the most dynamic segment of industry, with annual growth rates of over 40 per cent in the past few years. The cumulated value of business in this field exceeded last year EUR 2 bln, approx 66 per cent more than the value of EUR 1.2 bln reported in 2005. “The two hardware sectors had a fluctuating evolutions, with modest increases in 2005 and a stronger comeback in 2006, when it reached a turnover worth EUR 0.88 bln,” the research also shows. The contribution of the IT&C industry to the gross domestic product was approx 4.2 per cent, with the tendency of increasing by 0.2-0.3 per cent annually. The highest contribution is brought by the telecom services, with 3.1 per cent, while hardware share was 0.25 per cent and software 0.8 per cent. According to ITC estimations, the exports in the field exceeded last year EUR 1 bln, 30 per cent more than the level of approx EUR 790 M reported in 2005.

Automobile Dacia launches Logan MCV on Western markets

http://www.zf.ro/articol_107066/automobile_dacia_launches_logan_mcv_on_western_markets.html

Automobile Dacia, has announced that it will launch the Logan MCV model on the Western markets on which it is present, early this year. The model has been available on the Romanian market since last October. Logan Multi Convivial Vehicle (MCV) is the station wagon version of the three-volume Logan model, launched in September 2004. The vehicle is available in two variants with five and seven seats. Automobile Dacia representatives foresaw last October that, besides France, the main foreign markets for the new MCV would be Germany, Belgium and Holland, where there is high demand for station wagon models.

Dacia will offer a three-year or 100,000-kilometre warranty in most of the EU member states, said Renault. The model will be equipped with four airbags, according to EU standards, two in the front, for the standard version and, optionally, a further two lateral airbags for front seats. The warranty for the station wagon model differs, depending on each market. For instance, in Switzerland the company offers a five-year warranty, compared with the 18-month warranty offered in Romania. Dacia officials explained that the disparity is caused by different budgets earmarked for warranty services in each country. The French group says the prices for Logan MCV are competitive, but did not disclose any further details.

EU told to cut reliance on Russian energy

By Christopher Condon and Stefan Wagstyl in Bucharest

Published: January 19 2007 22:33 |

The European Union must reduce its dependence on Russian oil and gas by cutting energy consumption and developing alternative sources of supply, says TTraian Basescu, the Romanian president.

In an interview with the Financial Times, Mr Basescu urged the EU to take action to make itself less vulnerable to Russian political pressure or to events such as Moscow’s decision to cut gas supplies last year in a dispute with Ukraine and its move to interrupt oil shipments this year in a row with Belarus. ...

Financial Times: http://www.ft.com/cms/s/0de37502-a7e0-11db-b448-0000779e2340,_i_rssPage=ff3cbaf6-3024-11da-ba9f-00000e2511c8.html


---------------------------------------

“We’ve got all the premises to become a success member of the EU”

President Basescu tells ‘Profil’ Austrian weekly.

published in issue 3855 page 3 at 2007-01-23

In an interview granted to the Austrian weekly ‘Profil’ President Traian Basescu denies Romania has been poorly prepared to join the EU, if it is compared to other countries, stressing Romanians are at least as well prepared as the other ten countries that acceded in 2004. “We’ve got all the premises to become a success member of the EU. It is true the public opinion is not so optimistic and politicians had to react more reserved,” Basescu says, adding that strict conditions make Romania more efficient are they are not reason to complain about.

President Basescu says justice reform must be continued and it remains to be seen if judges, prosecutors and policemen act strongly enough against crimes, especially “if files target influent persons”.

The Head of State talks about fight against corruption, about officials that had to resign, being under investigation. “For the first time there are three former or incumbent ministers under investigations,” he said.

Referring to privatisations, Traian Basescu said his main question was: who is the main shareholder of OMV and who may buy OMV shares, having in view that the Austrian state owns just 35 per cent of the company. “We are in discussions with OMV-Petrom to make sure it remains part of the energy strategy of Romania,” pointed out the President. Basescu says, referring to Russian investors, Romania does not want to be controlled, “as we have experience from the Soviet era,” but “we have nothing against a partnership.”

As far as migration of work force is concerned, the Romanian President says there no reason for fears on behalf of Western countries. “Now, about two million Romanians work abroad. Many Romanian companies started paying higher salaries to maintain their personnel, so many Romanians may come back home. I think nobody should be afraid of a Romanian invasion,” Basescu told ‘Profil.’

Asked how Romania sees the EU further enlargement issue, Basescu considers Western Balkans should have priority, while EU’s stand towards Turkey cannot change. “We have to observe all the rules for Turkey. If Turkey fulfills in ten or fifteen years the accession conditions, then the EU should keep its promises.”

The Republic of Moldova issue was also tackled, the Romanian President considering that most of the Moldavians seek, by asking for the EU visa, to come to Romania and not to Western countries. “Most of the young people want to study and work in Romania, as we share common culture and history,” President Basescu explains.

Asked about a possible lustration law, Traian Basescu points to the fact that already 16 years have passed since 1990. Most of the former Securitate workers are retired, he said, adding that within the Romanian Intelligence Service (SRI) there is none of them still active. “They are present within the economy and politics,” the Romanian Head of State says.

During the interview President Basescu also speaks about the perspectives related to the Roma minority, about the programs to educate and help it, and hopes the EU will show solidarity on the issue and will find a way together with Romania to improve its situation.

Romania defeats Hungary in GDP battle


Romania left Hungary behind in terms of Gross Domestic Product for the first time ever last year. The score was 97 to 89 (billion euros). Leaving Hungary behind in the ranking of the biggest economies in the European Union has propelled Romania to the 17th position among the 27 states in this ranking.

Only three states in the Union managed to climb in this ranking last year, each going up one place: Poland (from 10 to 9), Romania (from 18 to 17) and Latvia (from 25 to 24). Whereas Romania "beat" Hungary in terms of GDP, Poland outranked Austria and Latvia left Cyprus behind, according to the estimates of Eurostat, the EU statistics division.

http://www.zf.ro/articol_109624/romania_defeats_hungary_in_gdp_battle.html

Top foreign banks come in search of private and investment banking clients
Autor: Razvan Voican | Data: 26 Ian 2007

Old names of the European banking industry - the Royal Bank of Scotland (UK), established 1727 and Lombard Odier Darier Hentsch Private Bank Limited (Switzerland), established 1796, as well as younger but similarly prestigious financial institutions such as Credit Suisse Luxembourg, JP Morgan International Bank Limited and Citibank International plc are getting ready to come in Romania in search of private banking and investment banking customers.

One month from the opening of the domestic banking market to any player in the European Union, the National Bank has received seven notifications from financial institutions interested to provide services directly on the Romanian market, without necessarily opening a branch here, pursuant to the EU legislation

... http://www.zf.ro/articol_109430/top_foreign_banks_come_in_search_of_private_and_investment_banking_clients.html

Bill Gates to visit Bucharest
Autor: Ziarul Financiar | Data: 23 Ian 2007

William Henry Gates III, chairman and founder of the world's largest software producer Microsoft will visit Romania for the first time in early February, company officials have confirmed. The schedule of the visit remains confidential, but sources on the market say that the arrival of Bill Gates will mark the launch of the new Windows Vista programme on the domestic market, as Gates' visit coincides with the anticipated release of Windows Vista, which is planned for February. Bill Gates may also visit the Centre for Technical Support that serves clients in Europe, Africa and the Middle East, as this is one of Microsoft's most significant investments on the Romanian market

... http://www.zf.ro/articol_108826/bill_gates_to_visit_bucharest_.html

Eurohypo to finance 200m-euro worth of real estate projects in first year
Autor: Lavinia Marin | Data: 25 Ian 2007

Eurohypo, the first bank that arrived on the Romanian market to exclusively focus on the release of solid financing for the real estate sector, plans to grant loans worth 200m euros in the first year in business in Romania.

... http://www.zf.ro/articol_109224/eurohypo_to_finance_200m_euro_worth_of_real_estate_projects_in_first_year.html

BRD-SocGen budgets 400m euros portfolio for SMEs
Autor: Liviu Chiru | Data: 29 Ian 2007


BRD-SocGen plans to double its portfolio of loans granted to small and medium-sized enterprises through standardised products this year, to some 400 million euros.

... http://www.zf.ro/articol_109628/brd_socgen_budgets_400m_euros_portfolio_for_smes.html

Major Chinese corporations prepare USD 10 bln investments in Romania

Romanian – Chinese economic cooperation about to be re-launched.

http://www.nineoclock.ro/archive_index.php?page=detalii&categorie=business&id=20070116-508915

President Traian Basescu’s official visit to the People’s Republic of China last year seems to have drawn the Chinese business community’s attention on opportunities in our country, particularly after Romania’s EU accession.

A mission headed by the China International Industry & Commerce Co. Ltd. chairman Wang Tianyi arrived in Bucharest late last week to announce investment plans drawn up by some of the major Chinese players for Romania.

As is already known, China International Industry & Commerce Co (CIIC) is a major Chinese corporation, one of the largest in China. CIIC operates in sectors such as real estate, international technological and economic cooperation, and has the experience and resources to develop important business groups.

CIIC is involved in infrastructure projects such as the Olympic Stadium, the new terminal of the Beijing Airport, and numerous other projects currently implemented in China with a view to hosting the 2008 Olympic Games.

High-level meetings

According to our information, CIIC is interested in implementing a number of investment projects in Romania. By far the most substantial amount will be channelled into a project concerning the construction of a 100-ha industrial park near Calarasi. The figure: USD 10 bln.

Apart from the industrial park in Calarasi, where 500 to 800 companies are expected to operate, investment targets also include the real estate market, business centres, a hotel, a residential complex just outside Bucharest, as well as the famous China Town. Depending on circumstances, a decision will be made as to whether the workforce required for implementation of these investments will be brought from China or recruited from the Romanian labour market, or whether a mixed solution will be used. The industrial park will be located on the Danube shore, in the area where the Siderca complex used to operate. The location was selected because it allows for easily shipping commodities around Europe by water transport means.

During their staying in Romania, CIIC officials are scheduled to meet President Traian Basescu, PM Calin Popescu Tariceanu and Mayor of Bucharest Adriean Videanu, as well as with the Ilfov and Calarasi counties council chairmen. The visit will also include meetings with various companies operating in Romania, as well as a real estate and infrastructure development workshop. The goal of the workshop is to introduce CIIC and its investment plans to Romanian developers, as well as to facilitate contacts with Romanian companies operating in constructions and other sectors.

CIIC partners with Niro Group in Romania

The first Romanian company representatives that officials for the important Chinese corporation met were those of Niro Group. The road for this meeting was paved last November, when Niro Group chairman Nicolae Dumitru met in Beijing with CIIC chairman Wang Tianyi: “We signed a framework cooperation agreement on carrying out joint investments in the real estate market, industrial parks and the hospitality sector,” Nicolae Dumitru told Nine O’ Clock. “That agreement resulted in the recent signature in Bucharest of a strategic cooperation contract. We will be partners in specific real estate projects, but according to the strategic partnership contract that we signed, we also have long-term investment development objectives.”

A new stage in the Romanian – Chinese economic relations

This week’s contacts prove that business relations between Romania and China are quite likely to enter a new stage. While so far Chinese companies only operated in the Romanian trade and services sectors, from now on major companies, important investment corporations will come to Romania and work in areas of strategic importance for our country.

In fact, during the visit made by President of China Hu Jintao to Romania in 2004, several Chinese companies signed protocols referring to investments in Romania. Thus, Talian undertook to modernise the Bucharest by-pass, while Road&Bridge undertook to participate in the construction of a bridge in Braila. Unfortunately, things have been lagging so far, but today there are sound chances that they will take on a normal trend.

Romania defeats Hungary in GDP battle


Romania left Hungary behind in terms of Gross Domestic Product for the first time ever last year. The score was 97 to 89 (billion euros). Leaving Hungary behind in the ranking of the biggest economies in the European Union has propelled Romania to the 17th position among the 27 states in this ranking.

Only three states in the Union managed to climb in this ranking last year, each going up one place: Poland (from 10 to 9), Romania (from 18 to 17) and Latvia (from 25 to 24). Whereas Romania "beat" Hungary in terms of GDP, Poland outranked Austria and Latvia left Cyprus behind, according to the estimates of Eurostat, the EU statistics division.

http://www.zf.ro/articol_109624/romania_defeats_hungary_in_gdp_battle.html

:banana: :cheers:

Vidin- Calafat tender won by FCC

published in issue 3861 page 7 at 2007-01-31
http://www.nineoclock.ro/index.php?page=detalii&categorie=business&id=20070130-509038

The Spanish construction group Fomento de Construcciones y Contratas (FCC) has won the tender for the construction of the Calafat-Vidin bridge that makes the connection between Romania and Bulgaria: “The bridge represents an important result of the attemps of Bulgaria to connect to the European transport system”, Petar Mutafciev, the Minister of Transportation stated after the signing of the contract. For the time being the only bridge that connects Romania and Bulgaria is Giurgiu- Ruse. After the accession to EU of both countries on January 1st 2007, the construction of the bridge will intensify the commercial trades in the South-Est region.

Last year the group prepared the lowest quotation for the construction of one of the most difficult under structure works. The other investors interested in the projects were the groups: Hochtief (Germany), Bouygues and Vinci (France) and a consortium formed by Ed. Zublin (Germany), Alpine Mayreder (Austria) and Eiffel Construction (France). The total value of the contract amounts to EUR 99,5 M. The works are financed by the PHARE and IPSA projects of the European Union, the European Bank for Investments and other financial institutions from Germany and France, as well as by the Bulgarian government. The Romanian subsidiary of the Spanish company will support the construction with work force. The construction works will commence in May this year and will be concluded in 2010, according with terms of the contract. FCC will build a bridge of 2 kilometres, with four traffic lanes, a railway, a railway warehouse, in the proximity.

by Nine oClock

Finally. Almost 6 years after the original start date.

June 2000 - Typical !! :bash:

Romania churns out malls faster than most of Europe

http://www.zf.ro/articol_101660/romania_churns_out_malls_faster_than_most_of_europe.html

The stock of retail space in Romania will increase by 50 hectares by the end of next year, which puts it among the top ten countries in Europe. This is what a survey by real estate company Jones Lang LaSalle found.

The growth pace on this dynamic segment of the real estate market exceeds the levels recorded in France, Belgium, Sweden and Hungary, but is lower than in Italy, Spain, Germany, Russia, Poland and Turkey.

With the average mall taking up 30,000 square metres, this means that on average there will be about 15 malls built throughout the entire country.


"At least ten malls will be completed by the end of 2007, but the market is far from saturated, at least outside of Bucharest. There are still many big cities overlooked by developers," says Luiza Moraru, the manager of the retail department of the real estate consultancy company Eurisko.

Mall developers have changed focus from the developed markets in Western Europe to the South, Central and to the East of Europe, where countries like Turkey and Russia will see the number of retail spaces go up by more than 50% by the end of next year.

Italy is the country where most malls will be built by late 2007. The United Kingdom has the largest supply of malls of all, while the Netherlands and Sweden have the largest number of retail outlets in malls compared with the number of inhabitants.

As far as Romania is concerned, developers are now looking at cities where the population numbers roughly between 100,000 and 200,000 people and that can accommodate one or two modern retail centres. The first malls in the country were developed in Bucharest and in Iasi.

The most important player on the shopping complex market outside of Bucharest has been Iulius Group, which has already developed two malls in Iasi and Timisoara and announced two more shopping centres in Cluj and Suceava. The former is scheduled to open next year.

At least two more malls will open this month in Sibiu and Ramnicu Valcea. Most shopping centres announced for 2007 are located outside Bucharest, in cities like Constanta and Cluj.

The number of malls will greatly increase after 2007, when other significant projects in Bucharest are scheduled for completion.

The south of Bucharest has become the location of choice for international developers, which have announced big projects such as Sun Plaza, an investment by the real estate arm of Austrian group Erste, Sparkassen Immobilien, and Liberty Center, developed by Northern Irish investors at Mivan, after a number of extensive projects like Baneasa Shopping City had been previously announced for the north of the city.

Economic growth estimates point to 6% in 2007

http://www.zf.ro/articol_110155/economic_growth_estimates_point_to_6__in_2007.html

National Bank Vice-Governor Eugen Dijmarescu (photo) has reached the same conclusion as analysts, and estimates Romania's economy will grow by 6% this year, compared with the approximate growth of 8% in 2006. "Romania has a high development potential, because it adjusts to the European Union markets. Economic growth this year will be at least 6%," Eugen Dijmarescu told Reuters in an interview quoted by Mediafax. The 6% estimate for this year's economic growth is similar to forecasts provided by analysts and several international institutions last month. The World Bank and Deutsche Bank provided the same estimate of 6% growth in 2007.

Furthermore, ABN Amro's research division drew the same conclusion and also anticipates that economic growth will stand at 6 percent in 2007. Somewhat more pessimistically, analysts of the UniCredit group see a 5.7% increase in Gross Domestic Product (GDP) for 2007. Conversely, the government's official forecast stands at over 6%, with the National Forecasting Commission expecting a 6.5% increase in GDP by yearend. The same institution estimated that GDP rose by 8% in 2006, although the National Statistics Institute will not publish the final data until March. How is this slowdown showing in the various branches of the economy? Preliminary estimates indicate that the industrial sector increased by 7.3% last year, construction increased by 18.1% and services by 7.7%. According to the official forecast for 2007, industry is set to grow by 4.8%, construction by 14.6% and services by 6.7%.

Bill Gates Visits Romania
1 Februarie 2007

http://www.evz.ro/article.php?artid=290327

The world’s wealthiest man arrived last night in Bucharest.

Gates came to Bucharest one day earlier than it was initially announced. The impression left was that he is a modest man: no bodyguards trailed him, no limos or pompous speeches.

During the inauguration ceremony for Microsoft’s Romanian Technical Support Center, Gates said that he will continue to invest in Romania.
:banana: :cheers:

He said Romania is an example in how the internet was successfully integrated into the education system.

Microsoft’s founder was decorated this morning with the national order “The Romanian Star”. He said he was moved by the gesture and continued saying that he is a common man who loved his work “I had the luck of gaining a fortune and I wanted to help people”.


Gates was also impressed with the expertise of the 300 Romanian people working within Microsoft’s Technical Support Center.


PM Calin Popescu Tariceanu said that the Center is an occasion for young Romanian IT specialists to stay in the country or for those abroad to come back to Romania.

great progress for Romania :applause:

^^ Cheers! :cheers:

Bill Gates Visits Romania

Romanian prez to Gates: Windows piracy built this country (http://www.engadget.com/2007/02/02/romanian-prez-to-gates-windows-piracy-built-this-country/)

LOL I agree with Basescu on this, but he should have kept it to himself.

^^ I agree with your comments. But the richest man in the world should make its products cheaper if he wants to "help" and get poor comunities into IT ... :cheers:

Daewoo Craiova privatisation, Tariceanu's main project for 2007

http://www.zf.ro/articol_110570/daewoo_craiova_privatisation__tariceanu_s_main_project_for_2007.html

The privatisation of the Daewoo Craiova carmaker is the main economic project Premier Calin Popescu Tariceanu has for 2007. He believes Romania has the chance to become the country with the most powerful automotive industry in the region.


"My ambition in 2007 is to successfully privatise Daewoo, to build a project the size of that Renault developed in Pitesti. We will not be setting the trend on the world's automotive market but will make Romania into an important competitor in terms of production volume," Prime Minister Tariceanu told ZIARUL FINANCIAR in an interview.

Requested a month ago, the interview took place on Friday, February 2.

Tariceanu says the privatisation might be completed by June or July.

He says the main privatisation criteria as far as Daewoo is concerned will not be the price offered by investors, but the scope of the project and its implications for the economy. "First of all, we are interested in the volume of production, in how many jobs will be created, the number of suppliers brought in Romania and, last but not least, in the extent of the domestic integration of production," the head of government said. Tariceanu adds Romania is no longer in the position where it sees "money as the main criteria". "We need an economy that continues to grow, fuelled by the business of new SMEs that can develop around a plant like the one in Craiova."


The Premier expects the future buyer to request a series of incentives, but says that the Government cannot do a great deal regarding this.

"According to the state aid legislation, we can grant support for professional training, research, as well as for regional development. We will also help the investor with the necessary utilities, especially with the transport infrastructure because the site in Craiova will have to be properly connected to the transport Corridor IV."

Tariceanu adds that the Dacia site in Pitesti will receive similar support, with the state paying for a new road to connect Mioveni to the Pitesti-Campulung national road. The Prime Minister believes that there are still many sectors that can attract significant foreign investment. "Romania's entry into the EU will boost the investors' appetite for utilities, especially the energy sector, with the companies becoming more valuable. I believe many SMEs from the EU will also come, because accession reassures them that we're playing by the same rules here," Tariceanu says. He added there were also several projects being worked on at the moment, singling out the plans of Saint Gobain to invest in a second manufacturing line in Calarasi and to build an automotive glass factory.

The head of government believes that Romania would not have anything more to offer investors in terms of taxation level and in this respect assures stability.

"As long as I'm a Prime Minister, the flat tax will remain unchanged and we are not considering introducing any new taxes that would generate economic slowdown. Things need to be viewed reasonably: the overall taxation level in Romania is no longer high. We cannot be constantly cutting taxes, either, because the budget has major investment programmes to sustain in education, infrastructure and healthcare," stated Calin Popescu-Tariceanu.

French developer Euromall is investing 220 million Euro in shopping centres

http://www.thediplomat.ro/real_estate_0207.htm

French developer Euromall is investing 220 million Euro in shopping centres in Pitesti, Ploiesti, Craiova and Galati. In Ploiesti, Euromall will invest 75 million Euro in a 55,000 sqm retail complex, delivering 1,200 parking lots and scheduled for completion in 2009. Euromall Pitesti, an investment of 35 million Euro, will deliver 20,500 sqm of rentable area and will comprise six cinemas, casino, restaurants and 700 parking spaces, due for completion in April 2007. Euromall Craiova, worth 65 million Euro, will be built on a total surface of 45,000 sqm. Work will start in 2008 and is scheduled for completion in 2009 - around the same time that Greek firms Elmec and Alesonor plan an 80 million Euro mall in Craiova. The 45 million Euro Euromall Galati is due for completion in Spring 2008, delayed from the original planned completion date of November 2007.

Insurance giants enter Romanian corporate segment

http://www.ingfn.ro/?m0=0&m1=0&id=298057&lang=en

The Romanian insurance market registered recently the first wave of European first-rank companies seeking new outlets for selling their services; most of them seek property and goods insurance or liability insurance, but eye mainly the corporate segment, says Bogdan Andriescu, president of the brokers association - UNSICAR. Following the market's liberalization, the foreign companies only need to notify their intention to sell products or services in Romania to the competent authority, without needing to request any additional approval. According to the latest issue of the Saptamana financiara weekly, of the 26 freshly entered companies, 15 come from Great Britain, 4 from each Germany and Ireland and one from each Austria and Gibraltar. The group includes companies specializing in travel insurance like Axa, VHV Allgemeine or Europaeische Versicherung, but the real giants like Mutual, Mitsui Sumitomo or Lloyd's, will cover all segments, the so far poorly covered professional risk included. The Romanian market is in an incipient stage, with payment default insurance standing at mere 30 million euros in 2006. The experience of the new companies will have a decisive say and the market will this year see new products such as transport policies or political risk insurance.

FADESA: We will invest more than 1bln in residential projects in Romania

http://www.zf.ro/articol_110712/fadesa__vom_investi_peste_un_miliard_de_euro_in_proiecte_rezidentiale.html
http://www.fadesa.es/inmo_index.php?idioma=1

A Coruña, 5th of February 2007.- FADESA continues its launch strategy in fast-growing European countries with the beginning of its activity in Romania, where it will invest 1,050 million euros on the building of five real estate projects comprising more than 16,300 homes. The developments will be located in the cities of Bucharest and Bacau.

The most important project will take place in the Romanian capital, where FADESA is going to develop a large-scale housing project. With an approximate investment of 850 million euros, the development will feature about 12,000 homes, and will be built in Stefanesti de Jos (northeast of Bucharest). In total, the project will cover a surface of 640,118 square metres.

The other developments will take place in different areas of the city of Bacau, which is 300 km from Bucharest and has a population of 210,000. FADESA will build more than 4,300 homes distributed over four low-density residential projects set in the districts of Serbanesti, Stefan Cel Mare, Margineni and Marasesti.

These projects reinforce FADESA’s position as one of the leading Spanish property developers working abroad, following its plan to establish itself internationally, which, up to now, has led the company to be present in Morocco, Portugal, France, Hungary, Poland, Mexico, Bulgaria, and now, Romania.

Hi, I'm a Spaniard living in France and thinking about learning Romanian (mainly for professional reasons, since there are many investments in your country, and I think it could be good for my career :); and I'd like to learn a "weird" language (I mean something different from the typical Spanish-English-French-German-Italian tandem); besides there are many French and Spanish companies investing there¡

What do u think about it? Would it be hard to learn for a Spanish native speaker and French non-native speaker like me? :) I have also notions of Portuguese and Italian. I know Romanian is a Latin language (that's the main reason I'd learn Romanian instead of Hungarian, Czech, Polish or Bulgarian) but I don't know how far it's from French, Spanish or Italian. I guess pronunciation it's easier than French (at least I hope so ;).

How much time will it take to be fluent?

Mult'umesc ;)

^^ 1 month to ask for Help!!! and roughly 1 year to ask for your money back :cheers:

^^ 1 month to ask for Help!!! and roughly 1 year to ask for your money back :cheers:

:lol: I think you're not a successful promoter of Romanian language. ^^

:lol: I think you're not a successful promoter of Romanian language. ^^

nebunul means crazy in Romanien,how is that for your first word?(good luck)

^^ :lol: On a serious note, I think you would learn Romanian quite easy considering that you already speak French and also you’re Spanish native speaker. I’d say about one year to become fluent with one condition though: get a beautiful Romanian teacher to "help" you :nuts:

Succes si bine ai venit in Romania!
Exito y bienvenido a Romania!
Success and welcome to Romania!

Romania vies with the Czech Republic sover new IBM investment
09 Feb 2007

http://www.zf.ro/articol_111365/romania_vies__with_the_czech_republic_sover_new_ibm_investment.html


IBM, one of the biggest IT companies worldwide, is to make a decision on opening a new services centre in Central Europe, with the two countries on the company's short list being the Czech Republic and Romania, according to the international press. IBM has discreetly been developing its services centre businesses in Romania, which had reached 500 employees in the third quarter of last year. Mihai Tudor, general manager of IBM Romania, had previously told ZF that the number of IBM employees in Romania could see a spectacular increase - depending on the progression of projects on which he did not provide details.

He said then that the development of the IT services centres would continue, and generate a significant increase in terms of numbers of staff. According to the international press, the centre, which will be opened in Romania or the Czech Republic, will focus on IBM's offer of IT architectures based on services, and will be part of a global network of such centres

Real easy to learn Romanian. I have a nice and beautiful "French" helper myself and its very similar, a lot of words are almost the same, you'll be surprised. Also at the same time I'm being the helper of a Bulgarian girl who is doing an awful lot just to learn Romanian here in Boston. Im impressed, in 3 months she can understand quite a bit.

Wages reach highest levels in post-communist Romania
Date: February 9, 2007

The average net salary in Romania reached at the end of last year, 1,099 lei (328 Euro), a 23.6% increase over December 2005, announced Friday the National Institute of Statistics (INS).

For the first time in Romania's post-communist period, salaries have reached the level reported in October 1990, surpassing it in December by 16.6%.

Average net wages in December 2006 were 21% over the level of the previous month, averaging 1,481 lei (442 Euro), in the context of holiday bonuses and pay advances.

The largest salaries were registered by those employed in the financial sector (3,336 lei average salary ~ 953 Euro), while workers in the production of clothing earned the lowest mean salary (548 lei ~ 163 Euro).

Taking into account inflationary trends, real growth year-on-year was 20.1%.

The largest wage increases (over 30% year-on-year) were seen by those employed in transport, tourism, public administration, education, financial services and tobacco production.

AEA: Tarom, most punctual European airline
Date: February 8, 2007

The national airline of Romania, Tarom, was the most punctual European air carrier in 2006, according to data furnished by the Association of European Airlines, reports Banii Nostri online. Tarom was followed in the classification by Icelandair and Air Malta.

Over three quarters of airplanes which take off from European airports depart on time, according to the report, while those which are delayed are usually the result of intense European air traffic.

The information from the AEA also shows that Tarom was among the most efficient companies in terms of baggage delivery. The airline which reported the fewest lost items was Turkish Air, with 3.4 bags lost/1,000, followed by Air Malta - 3.5/1,000 and Tarom - 7.5/1,000.

The AEA study reported information on 22 European airline operators.


http://www.investromania.ro/

foreign direct investment (FDI) for first 9months of 2006



Poland EUR7.6bn
Romania EUR4.9bn
Czech Republic EUR3.9bn
Bulgaria EUR2.8bn
Slovakia EUR2.7bn
Hungary EUR1.9bn





FDI/per capita


Slovakia EUR500
Czech Republic EUR380
Bulgaria EUR365
Romania EUR230
Poland EUR200
Hungary EUR185



Labour cost
Slovakia has traditionally benefited in the eyes of foreign investors from the lowest industrial labour costs in central Europe, estimated by Eurostat at EUR4.49 per hour in 2004 against EUR4.65 per hour in Poland, EUR5.57 in Hungary, and EUR5.61 in the Czech Republic. But in the same year, labour was estimated to cost just EUR1.57 in Bulgaria and EUR1.79 in Romania.

source:need to register
Europe Economy monitor (http://www.emergingeuropemonitor.com/file/42584/rising-fdi-competition.html)

^^ Romania's Total FDI 2006 - €8.3 billion :cheers:
http://www.bbj.hu/main/news_22446_romanian+2006+trade+deficit+widens+as+leu+gains+boost+imports.html

http://www.europarl.europa.eu/news/expert/infopress_page/008-2612-031-01-05-901-20070130IPR02598-31-01-2007-2007-false/default_en.htm

Romania, tinta investitorilor

Tara noastra este cea mai atractiva destinatie pentru investitiile straine din Europa Centrala si de Est, conform unui sondaj realizat printre directorii executivi ai unor importante companii.

INTERES - Romania a fost indicata ca fiind destinatia preferata pentru investitii viitoare de catre 58% dintre participantii unui sondaj facut de Ernst & Young, informeaza Mediafax. Studiul a fost realizat anul trecut, in octombrie, cu participarea a 200 de directori executivi ai unor mari companii din intreaga lume. Alte tari preferate de investitorii straini sunt Turcia (49%), Grecia (48%) si Bulgaria (44%). Doar un sfert sau chiar mai putin dintre cei intervievati au considerat atractive Serbia, Cipru si Moldova, celelalte trei tari din regiunea Europei de Sud-Est incluse in sondaj. Nivelul redus al impozitului pe profit si forta de munca ieftina sunt principalele puncte forte ale Romaniei in ochii investitorilor. Acestia sunt atrasi si de legislatia muncii, foarte flexibila, si de potentialul de crestere a productivitatii. De asemenea, marile companii apreciaza disponibilitatea spatiului de inchiriat, costul terenurilor si legislatia in acest domeniu. Cum e firesc, directorii au gasit si hibe in Romania. Ei sunt nemultumiti de infrastructura de telecomunicatii si cea de transport. Si activitatea de cercetare ar trebui imbunatatita, considera acestia.
http://www.compact.info.ro/index.php?section=articole&screen=articol&art_id=24311#

^^ I can't believe Turkey is ahead of us. It has to be the size of the market.

^^ Size matters :lol:

ROMANIA MACROECONOMIC INDICATORS

1. INFLATION
monthly (January 2007): 0.2%
previous month (December 2006): 0.74%

2. NET AVERAGE SALARY
RON face value: RON 1099 (December 2006)
variations compared to the previous month: 21.04%
EUR face value: EUR 321.9

3. UNEMPLOYMENT RATE
December 2006: 5.2% (December 2005: 5.9%)

4. FOREIGN TRADE (1.I.-31.XII.2006)
FOB export: EUR 25.9 billion
CIF imports: EUR 40.7 billion
FOB/CIF trade balance: EUR -14.9 billion

5. GDP (estimative) 1.I- 30.IX.2006
RON 229,571.6 million

6. STATE BUDGET (1.I -31.XII.2006)
revenues: RON 40,698.1 million
expenses RON: 51,235.6 million
balance: RON -10,537.5 million

II. FOREIGN CURRENCY MARKET

1. RON/USD exchange rate (December 2006)
end of period: 2.5767
average rate: 2.5834
monthly variation: -4.8%
variation since the end of the previous year: -16.2%

2. RON/EUR exchange rate (December 2006)
end of period:3.3817
average rate: 3.4141
monthly variation: -2.33%
variation since the end of the previous year: -6.7%

III. EXTERNAL POSITION

1. BNR’S FOREIGN CURRENCY RESERVE (January 2007): EUR 21.7 billion
2. GOLD RESERVE (January 2007): 104,7 tons
3. long and medium-term foreign debt (December 2006): EUR 27.7 billion
4. CURRENT ACCOUNT SITUATION at the beginning of the year (1.I. - 31.XII.2006): EUR -9,973 million

IV. INDICATORS AND MONETARY SITUATION

1. MONETARY MASS (M2) (December 2006): RON 111,711 million
2. MONETARY BASE (December 2006): RON 29,937.0 million
cash outside banking system: RON 14,980.7 million
cash within banking system: RON 1,931.7 million
3. POPULATION’S SAVINGS (December 2006): RON 21,198.7 million
4. RESIDENTS’ FOREIGN CURRENCY DEPOSITS EXPRESSED IN RON (December2006): RON 31,156.5 million

V. CAPITAL MARKET (December 2006)

1. BUCHAREST STOCK EXCHANGE
capitalization: RON 73,341.8 million
value of transactions: RON 733.5 million

2. RASDAQ MARKET
capitalization: RON 10,707.4 million
value of transactions: RON 93.1 million

Last update: February 15, 2007
http://www.mediafax.ro/
......................................................

Romania to pay car owners to junk old vehicles, buy new ones
14 Feb 2007, www.bbj.hu

Romania's government said it will spend 49.5 mln lei ($19 mln) this year to encourage owners of cars older than 12 years to junk them and buy new ones to cut pollution.
The government will give 3,000 lei each to owners of 16,500 cars to help them buy vehicles that meet stricter emissions standards, Environment Minister Sulfina Barbu said today at a press conference in Romania's capital, Bucharest. „Romania is among the countries with the oldest cars on the road in Europe, with an average car age of more than 13 years,” Barbu said. „That's more than the retirement age for cars in many European countries.” Romania must conform to higher pollution standards after joining the European Union on January 1. Cars in the country are often passed from parent to child and kept running for decades. Most older models were made by Dacia SA under the communist government which fell in 1989, before the company was sold to Renault SA, France's second-biggest carmaker. The payments revive a six-month program that ended in December. New car sales in Romania rose 16% last year to 297,000 units as wages increased and consumer lending boomed before the country joined the EU. (Bloomberg)


BNR: Foreign direct investments increased to EUR 9.1 bln last year
http://www.nineoclock.ro/, 2007-02-16:applause:
Bucharest – Foreign direct investments increased 75 per cent last year, compared to 2005, up to EUR 9.1 bln, the value including the EUR 2.2 bln cashed from the privatisation of the Romanian Commercial Bank (BCR), according to data released yesterday by the National Bank of Romania (BNR). Loans given by companies abroad to their subsidiaries from Romania represented a third of the foreign investments, while the shares in capital and reinvested profit totalled two thirds of the total. BNR statistics regarding the value of foreign direct investments at the end of 2006 exceeded the estimations made by the authorities and international economic organisations. Romanian Agency for Foreign Investments estimated for last year a level of EUR 6.2 bln, without including the privatisation of BCR. The United Nations Conference on Trade and Development (UNCTAD) estimated that FDI in Romania increased last year 34.1 per cent, to USD 8.6 bln, while the latest report issued this week by Ernst & Young Romania estimated the volume of investments at EUR 8.5 bln-EUR 9 bln. Romania was in 2006 the most attractive target for FDI in the South-Eastern region.


For detailed news: http://www.nineoclock.ro/index.php?page=business


Fuel loading begins at Unit 2 Cernavoda nuclear power plant
On Thursday, at 1:29, the reactor of Unit 2 of the Nuclear Power Plant in Cernavoda started being loaded with fuel, and the operation will last for approximately ten days. ‘Nuclearelectrica informs that, with the introduction of the first nuclear fascicle into the active area of the Unit 2 reactor of CNE Cernavoda, on Thursday at 1:29 hours, it became a nuclear installation’, reads a company’s communiqué.
The manual loading of the 4,560 nuclear fuel fascicles with a...


First commercial centre integrating a hypermarket in Moldavia
Carrefour Romania and Soconac, subsidiary of Vinci Construction Grands Projects Group are partners in the Felicia Centre commercial project in Iasi, the representatives of the two companies informed on Thursday.

The first commercial centre integrating a hypermarket in Moldavia is being developed on an area of ha 7 in the S-E of Iasi, only seven minutes away from the city centre. The centre will include a commercial gallery with 90 shops and several restaurants. Media Galaxy, Sephora,...


CONDOMINIUM 2007- first edition
Bucharest - The first Apartment Fair in Romania, “CONDOMINIUM 2007” kicked off on Thursday at World Trade Centre in Bucharest. The fair will be opened to the public until Sunday, every day between 10 a.m. and 7 p.m. Razvan Murgeanu, vice-mayor of Bucharest was invited to cut the ribbon and make the official opening. CONDOMINIUM 2007 gathered for the first edition 19 real estate developers and agencies, 3 banks, UTI Systems, Zepter and Mobexpert. The Commercial Bank of Romania (CBR),...

Romanian IT security solution market to grow by 30 pc
BUCHAREST – The local market for IT security solutions will register growth rates of around 30 per cent in the next years, as it is still developing’, Thomas Vavra, Software Research Director with IDC for Central Europe, Middle East and Africa *CEMA), stated yesterday.

The difference between Romania and the other Central European countries is very big, and the local IT security solution market is immature, stated the IDC representative for Romania, Laurentiu Popescu....


Merger of Baneasa and Henri Coada Airports almost completed
The price estimation of the plots of lands raises question marks.
BUCHAREST –The state wants to merge the Baneasa and Henri Coanda Airports in one company; following the merger, the two companies will no longer be stand-alone legal entities but will become working points for the resulting company. However, the Baneasa Airport land has been assessed at EUR 11 M, 80 times less than its market value, according to an investigation published by the ‘Jurnalul national’.
The Ministry of Transport, Construction and Tourism (MTCT) has...

In Bucharest, no less than eight new shopping malls to be built
The new real estate projects are worth hundreds of million Euros.
by Mihai George Bucharest – No less than eight shopping malls will be built in the Capital City, in the upcoming years, the pace of the constructions responding the increasing demand for shopping spaces, but also the builders’ increasing interest. It seems the first three malls already built (Bucuresti Mall, Plaza Romania and City Mall) no longer cope with the current situation, and developers of new projects are decided to embark on this challenge.
A new mall will be...


Globe Trade Center gets EUR 60 M loan from EBRD
Bucharest –The European Bank for Reconstruction and Development (EBRD) might extend a loan of up to EUR 60 M to a company created by the Globe Trade Center (GTC) and Aura Investment estate developers, for the building of a chain of trade centres in Romania.

The company will operate in the acquisition, development and management of trade centres in Romanian cities with more than 100,000 inhabitants, reads an announcement of the bank. The total cost of the project has not been...
Industrial space supply on the rise
Bucharest –The industrial space supply in cities Brasov, Constanta, Cluj-Napoca, Timisoara and Oradea will increase from the current 25,000 sq m to 875,000 sq m in 2009, according to estimates by DTZ Echinox real estate services provider. The total area of industrial space in Brasov will increase in the next two years to 280,000 sq m, and the supply will be immediately absorbed.
Logistic projects in Timisoara total 140,000 sq m, which is insufficient to cover the demand. DTZ...


A new private hospital in Bucharest - an investment of EUR 10 M
Bucharest –The private medical services company Sanador begins in 2008 the construction of a private hospital in Bucharest, the value of the investment amounting to over EUR ten M. “As a development strategy, we intend to build up a hospital of 100 beds, a project due to begin next year, with a minimum investment of EUR 10 M”, declared on Thursday, in a press conference, the general manager of Sanador, Doris Andronescu.
The company inaugurated on Thursday the...

Bulgaria, Romania Leaders on the European Real Estate Market
Great Britain ranks first in terms of foreign investments in the real estate business with 34 per cent of the total transactions made on the European real estate market, followed by Germany with 21 per cent and France with 13 per cent, the Romanian news agency nine o'clock reports.
Romania and Bulgaria are leaders on the retail area, a research by DTZ shows, cited by the nine o'clock news. Investments made in the Eastern Europe amount to 8 bln euros in just twelve months.
In Romania, Sema Parc, the largest residential complex in the capital, accounted for a transaction of 90 mln euros. With a total of 700 mln euros, the project that will replace Semanatoarea plant, is expected to be completed by 2015. The transactions made on the Romanian real estate market have reached the financial level of those made in other European countries.
In Bulgaria, the market registered the same growth supported by the acquisition of Polus Center by Immoeast for 210 mln euros. The American investments in Business Park Sofia are estimated at 180 mln euros, the main investments in the area.
In 2006, the real estate market was estimated to be around 800 mln euros for 22 mln inhabitants, while in Germany, with a number of inhabitants four times bigger, it reached EUR 2.6 bln.
In Romania, Bucovina Shopping Center and the business park in Sibiu are considered the most important investments by DZT specialists. North Real Estate Opportunities Fund acquired the business park of 50,000 sqm, while investments made in the acquisition of the commercial center, which will be opened in 2008 amounted to 60 mln euros
According to the same research, last year, in Europe properties of about 180 bln euros were bought and sold, an amount higher with 33 bln euros than the one registered in the previous year. In the last three months of 2005, the amounts reported by the European real estate market raised to 47 bln euros.


Renault Center in Romania to receive state aid
http://english.people.com.cn/200702/15/eng20070215_350379.html
A car design center to be built by Renault Group by 2009 in Titu, north of Bucharest, will receive state aid in compliance with European norms, Romanian Finance Minister Sebastian Vladescu said on Wednesday.
Vladescu said the Romanian Agency for Foreign Investment (ARIS) had told the Romanian government Wednesday that the French auto builder intended to invest some 450 million euros in the project.
The goverment has given ARIS permission to sign a memorandum with Renualt on the scheme for granting state-aid.
Vladescu said such negotiations between the government and a key investor are not unusual. He added that the Romanian government has implemented a series of fiscal and human resource measures concerning local infrastructure.
Last November, Renault announced the group will invest no less than 450 million euros in a high-tech centre located in Titu, where some 3,000 engineers and experts will design its new cars.
Renault Group will transfer the technical conception and design of the Renault and Dacia brands to Titu.

Romania upgrades radar
http://www.e4engineering.com/Articles/298260/Romania+upgrades+radar+.htmLockheed Martin has been awarded a contract by the Romanian Ministry of Defence (MoD) to upgrade five AN/FPS-117 long-range radars originally delivered to Romania in 1998 and 1999. The radars are used for air traffic control and strategic air surveillance. The upgrades will extend the service lives of the radars for up to 20 years.
When the upgrades are complete within 24 months, the electronics that provide each radar’s signal processing and data processing capability – currently housed in four cabinets – will be replaced with modernised electronics that fit in one cabinet. As a result, the radars will have the same capabilities and reliability as new AN/FPS-117 radars. The upgrades will be completed at Lockheed Martin’s Radar Systems facility in Syracuse, New York.
‘With these technology upgrades, there will be a fourfold reduction in components in each radar. This equates to improved reliability and maintainability, as well as a real reduction in life-cycle support costs,’ said Kevin Hines, Lockheed Martin program manager.
Romania is the third major European customer for whom Lockheed Martin has extended the service life of existing radars. The United Kingdom contracted with the company for similar upgrades for two of its long-range radars. In 2006, Lockheed Martin completed upgrades for eight AN/FPS-117 radars for the Germa Air Force.
Colonel Eng. Marin Mocanu of the Romanian MoD commented: ‘This upgrade is for our primary national air defence system. Eliminating obsolescence and maximising the radars’ capabilities will assist us with our applications in NATO and the European Union.’

Romania to get more work transferred from BOS Automotive’s UK operations
http://www.autoindustry.co.uk/news/15-02-07_8
15th Febuary 2007
The €400m-turnover German interior components supplier Bos GmbH’s Romanian subsidiary expects to achieve turnover of €57.4 million this year, up from €48m in 2006, based on the transfer of specific products from other locations, increasing demand for its products, and new OE contracts, according to Milenco Sava Manzat, general manager of Bos Automotive Products Romania, as reported in local media.
According to the the company, Bos Automotive aims to transfer to its Arad, Romania plant some products currently manufactured at Bos Automotive’s Wrexham plant in the UK, the bulk of output being exported to to customers including Audi, BMW, DaimlerChrysler, Renault, Opel and Peugeot.

Romania: EIB invests EUR 680m, mostly in transport projects
http://www.railway-market.pl/?p=wiecej&id=1301

The total amount granted by the European Investment Bank (EIB) in 2006 to project developers rose to EUR 679 M while this year this figure could reach EUR 1 bln, according to data provided by the institution.
Most part of the amount was invested in projects from transport and water management field.
The Romanian economic stability and massive influx of foreign investment will create in 2007 investment opportunities for EIB, the representatives of the bank consider who have created for Romania investment of 679 million euros in 2006.
'Romania signed an agreement with the Bank in 2006 for a number of potential projects, with a special accent on infrastructure projects in the transport and environment sectors, to absorb up to one billion euros/year' an EIB report, recently published said.
The EIB bureau to be opened at the beginning of this year in Romania, will improve cooperation and the role of the institution. Romania's place ranked second in 2006, according to the volume of BEI investment.
Turkey was the first with a volume of 1.82 billion euros in loans. EIB offered Romania, between 1990 – 2005 loans worth 4.3 billion dollars for projects connected to accession to the European Union (EU.)
After accession to the EU, Romania became shareholder of the bank, with a representative in the Governers’ Council and members in the Board of Directors.
Approximately 61% out of the loans granted to Romania were for the transport sector, 15% were allocated to environment and 7% to health and education.
The main transport projects are the rehabilitation of the railway on the Pan-European IV corridor ( 300 million euros, co-financing with ISPA), rehabilitation of road infrastructure on the European VI Corridor ( 350 million euros), the building of the Cernavoda-Constanta highway ( 187.5 million euros).
For this year the environment and the infrastructure are considered to be top priorities in terms of project financing. EIB has already financed the construction of a treatment station for used waters, the modernization of the railway system, several infrastructure projects and SMEs.
The projects will receive financial support form the European Union as well. EIB will open an office in Romania, according to the plans for the first part of 2007.
EIB has granted EUR 3.24 bln to the states eligible for the EU membership. Romania received EUR 1.82 bln ranking second after Turkey in terms of granted amounts.

Good news. Thanks.

Real easy to learn Romanian. I have a nice and beautiful "French" helper myself and its very similar, a lot of words are almost the same, you'll be surprised. Also at the same time I'm being the helper of a Bulgarian girl who is doing an awful lot just to learn Romanian here in Boston. Im impressed, in 3 months she can understand quite a bit.

OK, thanx¡¡. The problem with Romanian is the lack of manuals or grammar in French or English; even here in Paris it's uneasy to find a Romanian manual (even if France has always had intensive connections with Romania). I ve found "Parlons roumain - Langue et culture" and "Le Roumain. Langue, Littérature, civilisation" the most interesting so far.

^^ You see the problem with Romania is not only that is underrated (the news I posted above are not favorite with tabloids) it is unknown also hence even the lack of books, maps, travel booklets etc. However, I blame us not others for this. Its us Romanians, the governmnt and its institutios that should make the contry known by all means. I hope I do my bit ...

COURS DE ROUMAIN
INSTITUT CULTUREL ROUMAIN Paris
http://www.icr.ro/Filiala/Default.aspx?FilialaID=8

See the politicians of Romania in general (except Gigi Becali :-P) are really busy. They have no free time to actually do anything useful. They're only time in office is spent taking bribes from people. Poor guys, they're real busy. ;-)

Year 2007 – the energy year
published in issue 3874 page 4 at 2007-02-19
by Varujan Vosganian (currently ... Minister of Economy and Commerce)


This year we will have the Cernavoda Reactor 2 operational, investments in Reactors 3 and 4 will also start and the energy strategy will be finalised, most likely in May. The main objectives of the energy strategy include increasing the energy supply security, increasing energy competitiveness and reducing the environment impact. I estimate that by 2014, when the Cernavoda Reactors 3 and 4 are operational, we will have a 25 per cent rise in the energy output. With the GDP increase, the electricity consumption will also increase, and we need to be prepared for this increase.

In 2014 Romania will be a regional energy power and a major electricity exporter. I support the development of a new concept, the concept of energy diplomacy, as part of the economic diplomacy that we will present to our commercial attaches. Romania must develop new areas of interest in Northern Africa, Caspian Sea, Russian Federation and the Middle East. Also, in 2007 we will have to find solutions to regulate the electricity market. I remind readers that currently OPCOM is the only energy exchange and that it is on its scaffolding that the future regional energy exchange will be developed.

The Romanian Commodities Exchange will only facilitate bilateral contracts and will not have a next-day market, because the same OPCOM will be in charge with fine-tuning the system. Electricity transactions carried out in the centralised market of bilateral contracts account at the moment for approx. seven per cent of the consumption, which will increase to 40-50 per cent in a few years’ time, after completion of the contracts signed previously, i.e. prior to the OPCOM establishment.

The prices of electricity transactions will be made public shortly after. There will be no more “smart guys,” as the electricity will only be traded in OPCOM, and the prices there will be market prices.

Transgaz will be listed with the Bucharest Stock Exchange this year, and listing procedures will be launched for Romgaz, Hidroelectrica and Nuclearelectrica as well. Funds attracted in the capital market will enable these companies to make strategic investments in infrastructure. Romgaz and Gazprom will decide this year on the construction mechanisms of a large methane gas storage facility, to be located in Neamt County. This storage facility will ensure our energy stability during wintertime.

Romania will be actively involved in the development of the Nabucco and Constanta – Trieste pipeline projects, which will enable us to diversify oil and methane gas supply sources. Very importantly, salaries in energy companies that have been taken out from the list of monitored companies will be substantially raised in 2007. Power plant employees will earn a gross RON 2,400-2,800 a month, and nuclear power plant staff will make over RON 4,000 a month. We need a modern energy system, with highly motivated and responsible personnel.

Also in 2007, the energy network extension programme will be launched nation-wide, as 150 isolated villages and new residential complexes will be connected to the electricity network. The project amounts to EUR 150 M. thus, in 2009 there will be no more homes lacking electricity. As for the electricity and methane gas prices, they will witness a moderate increase this year, by six – seven per cent at most, which will not impact the inflation rate.

http://www.nineoclock.ro/index.php?page=detalii&categorie=business&id=20070218-509194

Billa Romania to speed up expansion pace
Wolfgand Janisch, general manager of Billa Romania says the supermarket network will speed up its expansion pace and it may reach 150-200 stores in 10-15 years. Billa Romania, the first international retail network that entered the local market in early 1999, reached an expansion pace of 10 new outlets per year, compared with 1-2 outlets registered in the first years of activity.
"The speeding up of the networkes growth pace is in line with our implanting strategy on the domestic market: in the beginning, we tested the market by opening 1-2 outlets per year, then we decided to expand faster and we took into account the increase in the consumerse incomes," says Wolfgand Janisch.
He adds the expansion pace was also influenced by the growth of the real estate market, as well as by the competition in the retail field. "At the moment, in certain cities there are only 2-3 good plots of land, suitable for a supermarket, which can be purchased by the competitors. Moreover, the investors in the real estate field are keeping their eyes on the good plots of land in the big cities," says Janisch. The retailers say the plots located inside the cities are harder to find, although the prices have increased exponentially over the last 4-5 years.
"The prices of the plots in Bucharest amount to 1,800 euros per square metre, which is extremely expensive. In Vienna you can purchase a plot with a very good access, at the price of 1,000 euros per square metre. As we are a food retailer we operate low margins, thus we cannot afford to pay just any price for a good site," mentions Janisch. He expects the prices will fall after a while, just like it happened in the Czech Republic or in Hungary.
The prices on the real estate market are not the only factors that affect the expansion of the Billa network on the local market. "Our expansion on medium and long term also depends on the support of the local authorities. For instance, in Western Europe the city halls play a significant role in attracting the major food retailers in their cities," Janish also says.
The malls could be some of the future sites of the Billa outlets, but the most recent projects announced in the big cities use the hypermarkets as an anchor.
Janish says the malls in Romania are not attractive from his point of view, because the space earmarked for a supermarket is not located in a good area, which is uncomfortable for customers.


GE Money targets over 50 territorial branches
GE Money, the division of retail financial services of General Electric, aims to operate over 50 territorial branches on the Romanian market, on medium term, as it intends to open 20 branches this year. The company took the local market of financial services by storm in 2006, after it acquired three financial non-bank institutions - Domenia Credit, Motoractive and Ralfi (the Estima Finance brand of consumer credits), following a transaction worth 140 million dollars. "We will initially open 20 territorial branches, but won't stop here. In other countries where we have been operating for a longer period of time (for example Poland or the Czech Republic) we have 50-60 offices, a level, which we wish to achieve here, as well," stated William Cary, chairman and CEO of GE Money for Europe, the Middle East and Africa.


Qatar Airways flies from Bucharest in 2008
Qatar Airways, Qatares national carrier, will operate its first direct Bucharest - Doha flights by the end of 2008. However, in about a month from now, Romanians will be able to fly with Qatar airline operator to destinations in Asia, the Middle East, the Indian Ocean and Africa through the Athens and Istanbul hubs. "The passengers will be able to use another airline operator to fly to Istanbul or Athens, from where they will fly with Qatar Airways to Doha (the capital of Qatar Emirate), and from Doha to other destinations. We will make about 70 destinations available to Romanian tourists," said Marius Mihulin, manager of Atlantic Tour agency, which has been representing Qatar in Romania since last autumn.

Transilvania Formaggi builds 14.5m-euro plant
Bistrita-Nasaud-based Transilvania Formaggi, a Romanian-Italian company set up at the beginning of 2006, will invest 14.5 million euros in building a milk processing plant in Gherla, Cluj county. The investment is made through a Sapard programme. "We hope to start production at the end of 2007," stated Claudia Iliescu, one of the shareholders of the company. According to company representatives, the Sapard funding will provide some 2 million euros of the total value of the project. "The rest of the amount up to 14.5 million euros, will be self-funded," said Claudia Iliescu. The Italian shareholders of Transilvania Formaggi are Francesco Canzano and Raffaele Garofalo.

BCR network to be modernised in three years
The branch network of Banca Comerciala Romana (Romanian Commercial Bank - BCR) will undergo fundamental changes starting this year, with one of the main projects involving a new organisation and a proposed new image for branches and offices, states Martin Skopek, 40, who was appointed BCR vice-president in charge of retail operations late last year.
"We are working with more than 40 projects that are in different stages. In no more than three years, the entire BCR network will be brought into line with what we consider to be the "Erste Group standard", stated Skopek, quoted by the EURO Czech publication.
He says BCR last year opened more than 100 branches, with the number of new offices to be "even higher" in 2007.

www.zf.ro

I had no idea GE Money was active in RO. That's good news.

Over EUR 800 M, taxes from real estate transactions in 2006
published in issue 3875 page 7 at 2007-02-20

Bucharest - The real estate remains in the top most active sectors in Romania. In 2006, the amount of the fees cashed by the public notaries further to transactions with lands and houses reached EUR 83 M.

According to the National Union of the Public Notaries from Romania (UNNPR), quoted by the ‘Money Channel,’ 500,000 real estate transactions were made last year. Apart from the sums obtained from the sale and purchase of lands and houses, the over 1,600 public notaries from our country also cashed stamp fees for the activity of the notary office and the judicial stamp, sums which were transferred to the state budget.

The real estate analysts estimate that the demand for dwellings will be bigger in 2007. As for the prices, those of the dwellings from the new blocks of flats are expected to grow, while those of the dwellings from the old neighbourhoods are expected to drop slightly.

The great novelties will be the completion of the new blocks of flats for the middle class and the mortgage loan without an advance payment. The specialists say that more real estate projects will be announced in 2007, than in 2006. This year several neighbourhoods from Bucharest will also begin to change their looks.

The industrial areas will turn into dwelling neighbourhoods. The lands of the factories from Bucharest are the main point of interest for investors. The accession to EU will bring foreigners interested to acquire properties in Romania, who will look for lands and new dwellings.

http://www.nineoclock.ro

Finance Minister worried about the growth of salary costs
Property fund has not a significant impact on the state budget.
published in issue 3876 page 8 at 2007-02-21

Bucharest - The Finance Minister Sebastian Vladescu appealed to Parliament to be side with the other institutions in the control of the salary costs, stating the necessity to correlate the policies from Parliament with the monetary, fiscal and budgetary ones. “The salary policies are a risk with which we all have to cope. I appeal to Parliament to be by our side in the control of the salary growth. There is a tendency to support such rises, which do not always come from the Government,” said Vladescu in front of the economic commissions from the Chamber of Deputies and Senate. He mentioned that all the authorities must back a joint decision regarding the salary packages, with a long term vision.

BNR governor Mugur Isarescu has recently referred to four major risks for the continuation of disinflation, beginning with the increase of the income, a process considered unavoidable by the central bank. “The growth of the income is unavoidable, through the anticipated hope and, I would say, the impatience connected with the growth of the salaries,” stated the head of the central bank. Then, Isarescu enumerated among the major risks from the next two years the evolution of the credit, the public expenditures, and, not last, the current account deficit.

The expenditures to be registered through the issuing of compensation titles for the former owners will not exceed 0.5 per cent of GDP this year, declared Vladescu. He explained the MPs members of the two economic Commissions that, according to the statistical bureau of the European Union, Eurostat, the issuing of the compensation titles must be registered as a budgetary expense. “The compensation title issued by the National Agency for the return of properties is that which has an impact on the budget, not the Property Fund,” said Vladescu.

Asked about the impact from this year, Vladescu pointed out that there are no estimate regarding the pace at which the titles are issued, the action being not dependent on the Public Finance Ministry. The impact will probably be 0.1-0.3 per cent of GDP, but no more than 0.5 per cent of GDP, declared Vladescu.

The authorities approved for this year a ceiling of the budgetary deficit of 2.8 per cent of GDP, increasing the expenditures compared to the past year in order to finance infrastructure projects and the contribution of Romania to projects with Community funds. The budgetary deficit was last year 1.7 per cent of GDP, twice bigger than in 2005, but below the approved ceiling of 2.5 per cent.

Isarescu recommends low value for foreign issues

The Governor of the National Bank of Romania (BNR), Mugur Isarescu, thinks Romania could maintain its presence on foreign markets through low value bond issues, an opinion taken over by the Minister of Public Finance Sebastian Vladescu, who gives the last quarter as a possible deadline. The local market currently offers the Ministry of Finance a cost comparable to the foreign one, said on Tuesday Mugur Isarescu, before the joint economic commissions of the Chamber of Deputies and Senate.

He said he understood the Ministry of Finance’s standpoint on Romania’s need to make its presence felt on international markets, to prepare likely issues when a great need for financing will appear. Vladescu said that MFP intends to release a bond issue most probably in the last quarter of the year. “We want to build an image of Romania on foreign markets together with BNR and we only presented our intention so far. (…) It will be a modest sum, but this means for Romania several hundreds of million Euros,” Vladescu mentioned.

http://www.nineoclock.ro/index.php?page=detalii&categorie=business&id=20070220-509224

Share of alternative energy in Romanian consumption to be one of the highest in EU, published 2007-02-22
http://www.nineoclock.ro/

In 2010 Romania will be one of the European Union Member States with the highest share of electricity produced from alternative sources, according to the EU statistics bureau, Eurostat.

European analysts expect the share of alternative energy in the total consumption in Romania will increase by a moderate rate in the coming years, reaching a level close to the one in Slovenia but below those in Portugal, Latvia, Sweden (over 50 per cent alternative energy) and Austria (over 75 per cent), reads the annual Eurostat report.

Last in the ranking come Hungary, Malta and Estonia.

As for the final energy consumption per capita, in 2004 Romania was one of the lowest ranking countries in the EU, along with Bulgaria, Malta and Lithuania, although the Romanian economy ranked second, after Bulgaria, in terms of the energy needs.

Eurostat also notes that in 2005 the electricity price in Romania accounted for 57 per cent of the EU average, while the natural gas price reached 42 per cent of the EU average.

The Romanian primary energy output reached 28.4 million tonnes of oil equivalent (toe) in 2004, whereas the electricity output accounted for less than two per cent of the EU total.

UK insurers prefer Romanian motor insurance market

Six insurance companies based in UK announced their intention to sell third-party motor liability policies (RCA) in Romania, Insurance Overseeing Commission (CSA) President Angela Toncescu announced yesterday. This will strengthen competition in this market segment, reads a CSA news release.

Toncescu also emphasised the need to eliminate RCA policy street sales, to calculate tariffs which cover the risks insured against and to reduce the costs incurred with brokers’ commissions.

Gazprom could invest in the gas depot from Margineni

The Russian holding Gazprom could invest in the gas depot of the company Romgaz from Margineni, close to Roman, declared yesterday for Rompres the general manager of Romgaz, Alexa Iacob. “We have received an invitation to go to Moscow in order to discuss this investment. We shall meet most probably at the end of this month or the beginning of March, and we shall make a decision,” declared Alexa Iacob.

SMC Gower Architects to design a logistic park

British architecture company SMC Gower Architects has won a contract worth over GBP 26 M (approx EUR 39 M), for the designing of a logistic park in Romania, with a surface of around 220,000 sq m, reads an article appeared in the British press, quoted by Mediafax. The project will have a built surface of 94,000 sq m. SMC Gower Architects is part of the British group SMC.



Romania leads in constructions sector growth

Romania recorded in December one of the highest growth rates in the constructions' production, 24.2% more year over year and 2.7% more, compared to November. The only country ranking above Romania was Slovenia, with some 30%, according to the Eurostat data.
Romania ranked above countries like Germany (16.1%), Belgium (10%), France (6%) and Poland (19.4%).
The production in 2006' Q4 was 22.2% above Q3. In the EU-25, the highest growth rates were recorded in Slovenia (31.7%), Lithuania (25.6%) and Poland (22.6%).

Not only the proudest but the fittest also !!!! :cheers:

Romania leads in male silhouette :nuts: :lol:

A piece of good news for Romania: it has the lowest incidence of obesity in Europe, with only 7.7% of all men, an Eurostat study shows. Romania is followed by Holland (7.9%), Italy (8.3%) and Austria (8.6%). The leading countries are Malta (25.1%) and the United Kingdom (22.3%).

Romanian women also have a quite fine ranking on the fifth place. Only 9.5% of the Romanian women are obese, compared to the last places - UK (23%) and Germany (21.7%). The lowest incidence is in Italy (7.9%), followed by Austria (8.6%), Denmark (9.1%) and France (9.2%).

http://english.hotnews.ro

EUR 10-15 M investments for the construction of a terminal in Cluj-Napoca airport

Cluj - Cluj-Napoca airport will organise an auction for the construction of a terminal for arrivals with an annual capacity of 500,000 passengers, whose value is estimated at EUR 10-15 M, declared on Wednesday, to Mediafax agency, the General Manager of the airport, David Ciceo. “We decided to build a modern terminal, according to European standards, because we intend to increase the traffic of passengers of the airport. The terminal will be destined to the travellers from the Schengen states and non-Schengen space and will be finalized in the first half of the next year,” stressed Ciceo. He estimated for this year a 30 per cent growth of the traffic, compared to 2006, to 300,000 persons, the number of passengers being expected to rise to 400,000 in 2008, the new terminal having a significant contribution to this growth. The structure of the terminal will consist of a ground floor plus two other floors, the last one only partial, and will have a useful surface of around 3,800 sq m.


(Bucharest-Brasov motorway - works on 19-60km will start tomorrow and for 0-19km the winner will be anounced in 10 days)
Lucrarile la tronsonul de autostrada Bucuresti-Brasov intre kilometrul 19 si kilometrul 60 vor incepe maine, a declarat ministrul transporturilor, Radu Berceanu.
El a precizat ca finantarea pentru demararea lucrarilor a fost realizata prin adunarea unor parti din fondurile unor proiecte de dimensiuni mai mici. Restul finantarii necesare terminarii lucrarilor va fi asigurat dupa constituirea Fondului de Dezvoltare (fond constituit dintr-o parte din sumele obtinute din privatizare - n.r.), a adaugat Berceanu.

Totodata, maine vor fi deschise plicurile cu oferte pentru construirea tronsonului 0-19 km din autostrada Bucuresti-Brasov, iar castigatorul licitatiei va fi anuntat peste zece zile, a mai precizat ministrul transporturilor.

Potrivit noilor estimari ale Ministerului Transporturilor, la sfarsitul anului vor fi in exploatare 298 de kilometri de autostrada, 420 de kilometri la finele anului viitor si 795 de kilometri in 2010

Real to open 4 outlets in Bucharest
http://img81.imageshack.us/img81/2117/realjo4.jpg (http://imageshack.us)

Real Hypermarket, the most active hypermarket network on the local market, opening eight stores last year, plans to open four more outlets in Bucharest, two of which may launch this year, according to sources in the market.

"We do not think the retail market from Bucharest is entirely saturated and intend to open four hypermarkets in Bucharest by the end of 2008," said Adriana Pita, communication manager of Real Romania.

The German retailer invested between 12-20 million euros last year in each of the eight units it currently operates in Romanian cities. The investment Real Hypermarket will make in Bucharest stores will exceed 80 million euros, according to the companyes estimates.
A Real hypermarket will be opened within the Cotroceni Retail Park mall, one of the largest shopping centres on the domestic market, and will be completed in 2008.

This year will also see the first opening of a Real outlet in Baia Mare, according to the companyes representative.

The two hypermarkets proposed to open in Bucharest, this year, will be located in the Vitan and Berceni districts, according to certain sources on the market as quoted by Mediafax. The retailer also targets Cluj, another significant Romanian city, where it continues to wait for authorisation on the opening of an outlet.

In the construction of its stores, the company collaborates with real estate investors, aiming to create a balance between the number of rented locations and the number of purchased locations. Three of the seven stores scheduled to open this year will be owned by Real, as the networkes representatives have previously stated.

Real Hypermarket, a branch of the German group Metro, will comprise of a 21-store network by the end of 2008, which will entail total investments worth 400 million euros on the local market.

The storese sales areas will take up between 6,000 and 8,000 square metres

off topis
good that you still keeping your news in English so I can read them

Romania should allot 10% of its GDP to reduce greenhouse gas emissions

... according to EU norms, but with such a large sum, the private sector must be involved including via the privatization of large thermal power producers, economy minister Varujan Vosganian said on Friday.

"This is a high financial effort and we need a public-private partnership system that would contribute to such expenses," said Vosganian in a press conference held together with European Commissioner for Energy, Andris Piebalgs.

Vosganian also said the reduction of pollution involves the privatization of the country’s state-run thermal power producers Turceni, Rovinari and Isalnita, which have large plants running on fossil fuels.

www.mediafax.ro

That's ridiculous, no country would ever a lot 10% of GDP just to fight global warming. Don't get me wrong, it's an important issue, but not THAT important.

^^ Most important IMHO ... No wonder we live on separate continents … :nuts:

No, Im a very pro advocate of lowering green house emissions but not when it comes to sacrificing 10% of GDP. maybe 3 or 4%. Its really just gonna get worse before it gets better (IE: technological advancements) in the next 100 years. The earth has been around for 5 billion years. 100 more years of using up the planet while we find the technologies (hint: FUSION!!!) to deal with this problem isn't gonna have a big impact on our continued existence.

America has got a big advantage over Europe: it's not crowded ... yet ...

The coasts are crowded, in between...not really.

No, Im a very pro advocate of lowering green house emissions but not when it comes to sacrificing 10% of GDP. maybe 3 or 4%. Its really just gonna get worse before it gets better (IE: technological advancements) in the next 100 years. The earth has been around for 5 billion years. 100 more years of using up the planet while we find the technologies (hint: FUSION!!!) to deal with this problem isn't gonna have a big impact on our continued existence.

IMHO I think if we “sacrifice” some of the GDP now to stop global warming until is not too late ("100 years" would be far too late IMO), will gain it back later on … if not, in 20-30 years time will be too late and will spend even more of the GDP on “natural” disasters …

RED: 750m-euro total projects

Real estate development company RED Project Management (RED) has programmes worth approximately 450 million euros in progress with different partners, with the cumulated value of the companyes projects to potentially reach 750 million euros in the next few years. RED shareholders include investment funds GED Capital and Warburg Pincus, the latter having in their portfolio investments of over 24 billion dollars in 550 companies worldwide. RED will focus its investments in two main directions: building a network of smalls-sized shopping centres and strengthening its positions in cities like Constanta, Baia Mare or Arad. "We want to build a network of shopping centres covering some 4,000 - 5,000 square metres in small towns like Slobozia, Slatina or Husi, where there arenet any currently offered.


Pic builds 2 hypermarkets with 50m euros

The Pic group in Pitesti, owned by Penescu brothers, the only domestically-owned company, which competes with the big retail chains, will open two new hypermarkets this year, following investments worth 50 million euros. "The new Pic hypermarkets will be opened in the second half of the year in the cities of Braila and Oradea, while next year we plan to see another three openings," stated Liviu Facaleata, general manager of the Pic group. The Penescu brothers announced the development of an 8 hypermarket-network by 2010, which will also target Bucharest. "The turnover of the Pic group derived from retail rose by some 30% last year against 2005, both thanks to the store in Craiova, opened in the autumn of 2006, and to the products sold in the hypermarket in Pitesti and to the fact that it was able to ensure its clientse loyalty," specified Liviu Facaleata.

Audi R8: 15 orders worth over 100,000 euros

Two months before its official launch on the market, and without the car being on display in showrooms, Porsche Romania, the official importer of the Audi brand, has already taken 15 orders for the new Audi R8. The model is available in two versions, one with manual transmission, for a price of 105,891 euros, and one with R-Tronic sequential transmission worth 113,307 euros. The Audi R8 was officially presented at the Paris Auto Show last autumn and was developed around the LeMans concept presented in Frankfurt in 2003. The model is assembled in Germany. Audi invested 28 million euros in the Neckarsulm plant in order to meet new quality standards.While the assembling of an Audi A6 needs 1.5 minutes, the R8 needs 44 minutes. Currently, Porsche Romania is planning to build in Bucharest, a showroom dedicated to the Bentley and Lamborghini brands.

I suppose in Moscow are 150 (if not more) on order ... :lol: :nuts: :lol:

Wow: tipically Romania. I love it. Bucharest streets are like an auto salon. Is the q7 the latest fad still or have they moved on to porche cayenne Magnum (better than Turbo S)

I wonder where all that money comes from... any suggestions?

U gotta know people man! It's how its done. And that im finding out...is the way it is in the states too.

I wonder where all that money comes from... any suggestions?

^^ I do not think is excessive. After all Bucharest has around 2 million inhabitants and approx 1 million cars :cheers:

Lufthansa enters local market with low-cost division

Germanwings airline, Lufthansaes low-cost division, will operate in Romania as of March 25, estimating to see 35,000 passengers in its first year in business. The biggest low-cost company in Romania, Blue Air, forecasts it will transport 500,000 passengers this year. "Romania is a market with potential. We will only operate one route to start with, Bucharest-Cologne (the Cologne/Bonn) airport), but we are also considering other destinations with Baneasa airport as a terminal, which we might introduce this year, as well," Andreas Engel, the company representative told ZF. The company intends to have three roundtrip flights to the destination per week, with the frequency to be increased in the future.Available destinations from Bucharest also include Berlin, Hamburg and Stuttgart. In addition to the Bucharest-Cologne route, Germanwings will also introduce new routes to Cologne from Burgas (Bulgaria), Sarajevo, Sofia, Zadar (Croatia), Varna (Bulgaria), Alghero (Sardinia) or Kavala (Macedonia), according to information available on the companyes site.

Germans at Max Bogl invest in turnkey houses

Max Bogl, one of the biggest German constructors, intends to invest some 10 million euros in Bucharest, in a production capacity of standardised prefab houses, to be delivered using the turnkey approach. "The residential market in Romania is under continuous development and we are studying the market to start an approximately 10-million euro investment in building a production facility for prefab-made family houses, which will be delivered turnkey in two or three months," Mattias Kirr, technical manager of Max Bogles local division told ZF. The houses could have a surface area of 150 to 200 square metres and will be aimed at both medium and high-income buyers.The concept of a standardised house entails assembling prefabricated walls in about 2 or 3 days on a foundation - that is later built, with the completion expected in about two months. "This system was successful in Germany and we want to implement it in Romania, in around two years," says Romeo Botocan, executive manager of Max Bogles operations in Romania.

Neoset to open eight stores this year

Neoset, a furniture manufacturer and retailer, intends to expand its store network by another seven or eight outlets this year. Currently, the company owns over 15 retail outlets throughout the country. "This year we will strengthen Neosetes presence locally and we will develop outlets in cities where we are not currently retailing. Obviously, the development will also generate a need for a growth in personnel," said Monica Coman, marketing manager of Neoset. The investment in one store is estimated at over 100,000 euros, but the sum can vary depending on location and space. Neoset has been present on the Romanian market since 1991 and operates by franchising.In Bucharest, the company owns four stores, one of which is franchised, with the rest being owned by the company. Neoset also owns a plant, which has been operational since 2000. Prior to the starting of production, the company operated as an importer. The group is currently employing over 100 people.

www.zf.ro

Yep, but I mean the ultra-expensive cars sold in Romania or Bulgaria. I've read somewhere that last year there were more Maybachs (the 400.000 € limousine made by DaimlerChrysler) sold in BG than in France, for instance.

I guess a lot of money will come from urbanistic especulation (i.e. that is quite usual in Spain) and the growth because of the EU-economic funds, but I wonder if in BG or RO there are dangerous mafias as in Russia or Ukraine! I hope with the European Union everything has became more "clear".

^^ I can not speak for BG but in RO there is not such things... not on a large scale. BTW we have not had any (none) contract killings in the last 10 years as in Russia ...

Germanwings will be the fourth discount airline to enter the BG market. We already have:

1. Wizz Air from Hungary/Poland
2. Sky Europe from Slovakia
3. My Air from Italy

Real estate in Bucharest yields 1500% profit within 8 years :eek:

The prices of real estate in certain areas of Bucharest have increased 14 times since 1999, when a two-room apartment could have been bought for 5,500 euros in a fairly central area of the city. Areas which neither investors nor city inhabitants were interested in ten years ago have become significant property areas due to factors such as the opening of the first mall, which caused the prices of real estate to rise by a greater degree than in similar neighbourhoods. "The opening of the first mall in Bucharest, in December 1999, boosted the prices of apartments in the area. When the shopping centre opened, a two-room apartment could have been purchased at the price of 5,500 euros, while today the same housing unit would costs 85,000 euros," say the representatives of the real estate consultancy firm Coldwell Banker Affiliates of Romania.In comparison, the price of apartments in the Drumul Taberei district have increased almost 10 times, according to the same sources. The development of the Vitan area created a boom in the market for plots of land, which has seen a 20-fold rise in prices over the past five years, from 25-80 euros per square metre to, at present, 500-1,500 euros per square metre. However, developers of residential areas have earmarked this area of the city and are expected to announce the development, over the next two years, of three big residential complexes, with almost 1,500 apartments in total, within close proximity to the mall.

Nanette Real Estate in advanced talks to buy plot in Romania for 4.05 mln eur

LONDON (AFX) - Central and Eastern European residential developer Nanette Real Estate Group NV said it is in advanced negotiations for buying an 18,000 sq metres plot in Bucharest, Romania, for a total 4.05 mln eur.

The company added an international investment fund, which had signed a memorandum of understanding to subscribe to 10 pct of Nanette shares at 85 pence each, has now decided to raise its investment to 15 pct at the same price.

Nanette also said it is in a preliminary stage of exploring the possibility of reorganising all its Polish portfolio under one holding company and/or issuing shares on the Warsaw Stock Exchange. newsdesk@afxnews.com tsk/slm

Doha Bank making foray into Europe with Romania unitPublished: Wednesday, 28 February, 2007, 08:46 AM Doha Time

DOHA: Doha Bank, Qatar’s fifth-largest lender by market value, will open a representative office in Romania within three months, the bank’s first in Europe, according to Dow Jones Newswire.
“We will open a representative office in Romania and follow it by a branch shortly,” the bank’s deputy chief executive Raghavan Seetharaman told Zawya Dow Jones on the sidelines of the Forbes CEO Middle East Forum in Qatar.
Seetharaman said Romania was chosen by Doha Bank as both the countries are major suppliers of liquefied natural gas.
“This is our first move into Europe,” he said, adding that the bank has applied for four other licences in Europe.
Doha Bank has said earlier it was expanding into the UAE, Kuwait, Bahrain and India.
The bank last week opened a representative office in Japan with an aim to promote business with Japanese companies operating in Qatar. – Bloomberg

Immoeast goes shopping again, spends 90 million euros for S. Park

Austrian investment fund Immoeast has bought the S. Park business park developed by Primavera Development close to Piata Presei, in an about 90 million-euro deal, one of the biggest transactions on the domestic market.

The shareholders of Primavera Development are businessmen Daniel Adrian Tanasoiu, Emil Tanasoiu and Valentin Bitoiu, shareholders of the ACMS company that dealt with the construction of the business park.

The representatives of Immoeast could not be reached for comment by the time the story was ready for print, while Prima Development officials would not comment. They did say, however, that they could make an announcement soon.
The deal was concluded at a yield of around 6.

Praktiker aims for over 30-outlet network

Guenter Vosskaemper, the general manager of Praktiker Romania, the biggest DIY chain domestically (16 outlets), says the company is halfway through its network expansion.

Praktiker Romania DIY network generated sales of some 150m euros last year, up 43% year-on-year and will keep up the same fast growth pace on medium term. "Last yeares sales growth is partly due to the stores opened before 2005," says Vosskaemper.

Praktiker opened five outlets on the domestic market last year, in November and December, following investments of 8m euros per outlet, after having launched four outlets in 2005.

"In 2002, when we arrived on the Romanian market, we voiced our intention to develop a network of 15 outlets on medium term.

Roexpres to be taken over by Austrian investor

Domestic courier company Roexpres has received an acquisition offer from an Austrian company, with the transaction likely to be completed towards the middle of the year.

"We received several offers, some of which were from investment funds, but the most serious one came from the Austrian company," said Dumitru Stefan, the manager and one of the two shareholders of the company.

Just like with Concorde Courier, which is currently in talks for its sale, the main reason for this decision is the need for considerable investments in the company.

"If Roexpres wants to be a significant player on this market, it will have to invest at least 1 million euros in software and in its car fleet," Dumitrescu added.

The French at Renault to commute by aeroplane

The over 100 French engineers that Renault will bring to work at the Titu-based research centre, could begin commuting daily by plane from Paris to Titu. The decision to use commuting is simple: lower expenses than those entailed by relocating one hundred French employees, with families and children, as the relocation comes as a "package deal" with payment of school taxes and accommodation. As a result, Renault has decided on daily (air) commuting between Boteni - Titu and Paris, Le Bourget airports. Even the Paris airport has two major advantages: "It is much cheaper and much faster, since the French waste a lot of time with formalities at Charles de Gaulle airport." For the engineering centre in Titu, an extensive recruitment campaign has been started. The centre has 3,000 openings available for university graduates, with 37 being the age limit. Out of the 3,000 people employed, only 103 will be French, with the remaining 2,900 positions open to Romanians and other nationalities.

Petrom may earn 120m euros after selling land

Petrom, the largest domestic company, taken over by the Austrian petroleum group OMV, is analysing several possibilities through which it can exploit a plot of 200,000 square metres of land, located in Straulesti, in the northern part of Bucharest, after it has completed the ecological rehabilitation work started there. By selling the land, Petrom could earn approximately 120 million euros, according to specialists in the real estate field. "We will decide what to do with the land, as we have several options at the moment. Either we will build the new Petrom headquarters on the site, or we will try to sell it," stated Mariana Gheorghe, CEO of Petrom.According to company officials, Petrom might also only use part of the plot, on which they will build new headquarters, with the remaining land being sold to real estate developers. Currently the prices of plots in this area range between 200-350 euros per square metre, according to real estate firms. "After the ecological rehabilitation works are finished, the price of a square metre of land in the area may amount to 400-600 euros," stated Laurentiu Badea, senior broker with the real estate consultancy firm Eurisko. Under current circumstances, the plot of land may amount to 80-120 million euros. Petrom does not own other plots of a similar size in Bucharest or in any other regions of the country.
www.zf.ro/

This is a list of credet institutions that would like to be active in the Romanian market or are currently and have asked for approval from the BNR (National Romanian Bank:)


1. Citibank International plc*
2. J. P. Morgan International Bank Limited*
3. J. P. Morgan Europe Limited*
4. Erste Bank der österrechischen Sparkassen AG*
5. The Royal Bank of Scotland*
6. Lombard Odier Darier Hentsch Private Bank Limited*
7. Crédit Suisse (Luxembourg) S.A.*
8. Rathbone Investment Management Limited*
9. Goldman Sachs International Bank
10. Morgan Stanley Bank International Limited*
11. Dexia Kommunalkredit Bank AG*
12. Hypo Public Finance Bank*
13. DePfa ACS Bank*
14. DePfa Bank Plc*
15. Merrill Lynch International Bank Limited*
16. ICICI Bank UK Plc*
17. IDT Financial Services Limited
18. DEPFA Deutsche Pfandbriefbank AG*
19.WestLB AG*
20. Danske Bank International S.A.*
21. GE Artesia Bank*
22. Saxo Bank S/A*
23. Kommunalkredit Austria AG*
24. KBC Bank*
25. VISA-Services Kreditkarten AG
26. CommBank Europe Ltd (CBE)*

* Instituţii de credit care desfăşoară şi activităţile prevăzute de art.18 alin.1 lit.g) – k) din Ordonanţa de Urgenţă a Guvernului nr. 99/2006 privind instituţiile de credit şi adecvarea capitalului (this is the specific law regarding this)

This is a list of credet institutions that would like to be active in the Romanian market or are currently and have asked for approval from the BNR (National Romanian Bank:)


9. Goldman Sachs International Bank

* Instituţii de credit care desfăşoară şi activităţile prevăzute de art.18 alin.1 lit.g) – k) din Ordonanţa de Urgenţă a Guvernului nr. 99/2006 privind instituţiile de credit şi adecvarea capitalului (this is the specific law regarding this)

:cheers:

Hell ya!!

Im gonna contact them and see if they need someone from the us who knows the area well :D

This is a list of credet institutions that would like to be active in the Romanian market or are currently and have asked for approval from the BNR (National Romanian Bank:)

10. Morgan Stanley Bank International Limited*



Here we come! Yeah!!!!

:cheers:

Do you work for Goldman?

I think he says stuff just becomes hardcore when goldman comes.....BTW...when they had those huge huge bonuses a few months ago, aparently every single worker, including the janitors, received at least 20,000$

Do you work for Goldman?

:cheers: :lol: :cheers: :) ?!!

South Pacific Group launches projects worth over 100m euros
02 Mar 2007, www.zf.ro

South Pacific Group, an Australian-owned real estate development firm, which owns 50-60 hectares of land in small towns close to the northern part of Bucharest, plans to develop real estate projects exceeding 100 million euros over the next couple of years.

South Pacific Group is currently developing four residential projects in the Tunari area in the northern part of Bucharest, where it owns approximately 10 hectares of land and intends to build 550 homes.

"We noticed the growth potential of the Pipera area, where the properties almost doubled in value every year, becoming unaffordable for middle class buyers. We looked at a second area, Tunari, located 12 kilometres from the city centre and close to an area of Bucharest that has generous job offers," said Andrew Prelea, joint CEO of the company.South Pacific Group is controlled by businessmen Richard Gardner, Geroge Prelea and Andrew Prelea, it employs 50 people, among whom five Australians, including the companyes managers. Andrew Perelea, 39, who was born in Romania, has dual citizenship.

The main areas where South Pacific Group purchased plots of land are Tunari, Runcu, Dascalu, Dimieni and Otopeni.

"We intend to develop a large project in Dascalu, on a 10 hectare-plot, as we are encouraged by the future construction of the highway to Ploiesti, in the region. The construction works may start in the first half of next year and the real estate project will comprise retail areas, covering 15,000 square metres, as well as 600 housing units. The investment is estimated at around 60 million euros," stated Prelea.

At the moment, the South Pacific Group is focusing on the developments in the Tunari area, where the company is building four residential complexes. Each of the residential complexes in Tunari is named after a city in Australia, the latest project being named Canberra.

The first project of South Pacific Group developed on the Romanian market is located in Straulesti. It was commissioned by the Ministry of Defence, with the seven blocks of flats to be completed in July, three months earlier than planned.

Porsche posts 630m-euro turnover

Porsche Romania, the importer of Audi, Volkswagen, Skoda, Seat and Porsche brands, derived turnover worth 630 million euros, up by 34% against 2005.

"The rise in turnover was mainly generated by the market growth, amid a prosperous economy, the new products launched by most of the car brands, as well as the campaigns organised by importers. We estimate the market will grow by approximately 10%," said Brent Valmar, the general manager of Porsche Romania.

The market of imported cars amounted to exactly 137,252 units, up by 34% against 2005, according to the statistics published by the Automotive Manufacturers and Importers Association (APIA).

All article at http://www.zf.ro/articol_114405/porsche_posts_630m_euro_turnover_.html

Romania plans campaign to lure back citizens working abroad
03 March 2007


Romania's government said it plans to start international advertising, recruiting campaigns and bonuses to encourage citizens working abroad to return home.
Romania, which says it has about 2 million citizens working abroad and is undergoing a labor shortage, will also consider paying some benefits to workers who come back home, the prime minister's office said.
The government will "create a system to stimulate the return of Romanian workers to look at, mainly, wages, benefits, transport, relocation costs and training," a statement read adding it will analyze the possibility of using existing funds.
Italy and Spain are the main destinations for Romanian migrant workers who left since the fall of communism in 1989 in search of better wages. European Union countries feared a flood of migration from Romania and neighboring Bulgaria after they joined the EU on 01 January this year.
Prime Minister Calin Tariceanu said last month that rising wages and a growing economy would help entice some of them to return.
Romania's economy grew an estimated 8% last year and average monthly wages in December, 2006 increased almost 30% from a year earlier to 1,100 lei ($428).
Romania's national association of construction companies has said the nation of 22 million people needs to attract another 300,000 construction workers, doubling the current number, to meet demand as building booms.
Bechtel Group Inc., a San Francisco-based construction company, said it's missing deadlines to build Romania's longest highway because it can't find enough workers.

Nokia wins 3G network contract with RCS & RDS in Romania

The agreement marks a new customer for Nokia
Espoo, Finland : Romanian fixed and greenfield mobile operator, RCS & RDS, has selected Nokia as its WCDMA 3G core and radio network supplier. With Nokia's support the operator will be able to quickly enter the Romanian 3G mobile market and offer a wide range of services under the brand name Digi.Tel. RCDS & RDS has recently launched its 3G service.

"Fast time to market and cost-efficiency are of key importance to RCS & RDS in launching 3G services in Romania," says Alexandru Oprea, President of RCS & RDS. "Nokia's high-quality network and services provide us the support that we need in acquiring customers and offering them the best 3G mobile services in Romania."

"Acquiring new customers and generating customer loyalty depends largely on how reliably services are delivered. The technical service delivery machinery, the network, must be properly designed and assured. We are confident that RCS & RDS will be able to make a strong entry to the Romanian 3G mobile market thanks to Nokia's solutions such as the Nokia Flexi WCDMA Base Station and the Nokia MSC Server mobile softswitch," says Filip Rommelaere, General Manager for the Balkans, Networks, Nokia.

Nokia's WCDMA 3G radio and core network supply to RCS & RDS includes the Nokia Flexi WCDMA Base Station, the Nokia MSC Server mobile softswitch and the Nokia Flexi Intelligent Service Node (ISN). The network will be supported by the Nokia NetAct(TM) network and service management system. Nokia will also provide RCS & RDS with network planning, implementation, project management, maintenance, 3rd party support, hardware repair, and training services. Deliveries have started.

In WCDMA 3G, Nokia has 67 customers to date. Almost half of the commercially launched WCDMA 3G networks have Nokia equipment. Nokia Flexi WCDMA Base Station is a space-saving modular innovation that enables operators to make more efficient use of their base station sites, leading to significant site cost savings through reduced site construction work, quick base station installation and decreased power consumption. All these make the Nokia Flexi WCDMA Base Station an environmentally friendly solution.

Nokia is creating seamless personalized user experiences in fixed and mobile networks thanks to the Nokia Unified Core Network solution. With close to 130 customers for its mobile softswitching and over 50 live networks, Nokia is clearly the most experienced mobile softswitching supplier worldwide.

About RCS&RDS S.A.
RCS & RDS is one of the leading telecommunication service providers in Romania and the Baltics and offers fully integrated telecommunication solutions and services to business and residential users: cable and satellite television, Internet, data communication, and fixed and mobile telephony. The services are based on RCS & RDS' modern technology and self-operated network.

In December 2006, RCS & RDS won the contest for a 3G licence, issued by IGCTI (Inspectoratul General pentru Comunicare si Tehnologia Informatiei). In March 2007, the company launched its 3rd generation mobile communications service - branded as Digi.Tel. For more information, please visit www.rcs-rds.ro.

About Nokia
Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations.

Cuprom Romania wins US$400-million (€303-million) bid for Serbian copper complex
International Herald Tribune


BELGRADE, Serbia: Cuprom Romania has won a US$400-million (€303-million) bid for Serbia's largest RTB Bor copper company, the Serbian government announced Monday.

Cuprom Romania, one of Europe's biggest makers of copper products, had the highest bid in the race for the privatization of the Rudarsko Topionicarski Bazen Bor, which includes several mines and a smeltry, the government said.

The other bidder in the race, the Cyprus-based East Point, had offered US$80 millions (€60 million) less for the huge mining complex in eastern Serbia, the country's privatization agency said.

The Cuprom bid — which was staunchly opposed by the company's management and local politicians — included a range of multimillion-dollar (-euro) investments in order to solve the company's environmental and production problems caused by outdated technology.

Due to the problems, RTB Bor's production of copper was reduced from 170,000 tons a year in the 1970s, to only 40,000 tons per year after 2000.

Mobilia Company invests 85m euros in furniture malls
www.zf.ro

Mobilia Company, a Romanian-Canadian-owned company based in Bucharest, will invest 85 million euros over the next five years to open seventeen furniture shopping centres throughout the country.
Mobilia Company will build seven of the 17 stores scheduled to open within the retail parks developed by the BelRom company, controlled by Belgian investors. The first mall will be opened this June in Sibiu, within the European Retail Park shopping centre developed by BelRom. The Sibiu-based Mobilia Mall will take up 6,100 square metres and will entail an investment worth 5 million euros.
In comparison, the largest outlet of Elvila, one of the main players on the domestic furniture market, is located in Bucharest, and takes up 10,000 square metres.Other large outlets managed by Elvila are located in Constanta (7,000 square metres), Iasi (6,000 square metres) and Ploiesti (5,000 square metres). The outlets operated by the smaller retailers take up approximately 1,000 square metres. The biggest Neoset outlet, for instance, covers a surface area of over 400 square metres. "We chose to invest in Sibiu because the city has a fantastic growth potential and is very promising on long term. There is a high demand for furniture in Sibiu and we thought it was natural for us to start such an investment here," said Daniela Sandu, chief operating officer of Mobilia Company for Sibiu.
The Mobilia Malls will comprise between 15 and 20 furniture manufacturers. "When we chose the suppliers, we targeted the average-income clients," says Razvan Paraschiv, partner in Mobilia Company.
The company will develop almost half of the shopping centres in the locations where BelRom will build retail parks. The shopping centre European Retail Park in Sibiu, developed by BelRom was acquired by the British investment fund North Real Estate Opportunities (NRE), through a transaction worth 83 million euros, in late last November.
"BelRom tends to become a traditional business partner for Mobilia, and it plans to open two more outlets, in Targu Mures and Bacau, over the second half of the year, while at least four more outlets are expected to open next year," adds Razvan Paraschiv.
Mobilia also plans to open at least ten more stores over the following five years, besides the above-mentioned ones, including the one in Sibiu.

DJ Romania GDP Growth Accelerates To 7.7% In 2006 - www.mediafax.ro

BUCHAREST (Dow Jones)--Romania's economic growth accelerated to 7.7% in 2006, in line with government expectations, news agency Mediafax reported the National Institute for Statistics as saying Tuesday.
In January, Economy Minister Varujan Vosganian said real gross domestic product grew 7.7%-7.8% in 2006.
In 2005, Romania's economic growth decelerated to 4.1% from a record 8.4% in 2004 due to lower agriculture output, which was seriously affected by floods. The National Statistics Institute is expected to provide further details on GDP at a press conference Friday, March 9.
In nominal terms, GDP totaled 342.418 billion lei ($132.15 billion) in 2006, compared with RON287.1 billion in 2005.
In the fourth quarter alone, gross domestic product totaled RON112.475 billion, up 7.7% from the same period a year earlier.
Romania's current account deficit widened 44.8% on the year to EUR9.973 billion in 2006.
Foreign direct investment in 2006 totaled EUR9.1 billion, up from EUR5.2 billion in 2005.

Prediction 2007 for the Balkan states - Romania

The country is a member of the EU since 01/01 and is gradually increasing its presence in the fiercely antagonistic international arena.
Perennial problems such as poverty, corruption and a backward public sector will be much into the mainstream public critique over the year.
The economy is performing well in the real estate, commercial and heavy industry sectors. Relations with the Hungarian minority are unruffled for the time being and the country has made considerable progresses in the treatment of its significant Roma minorities.
Over the year a notable development to watch is the process of judicial investigation on the alleged corruption incidents that took place during privatizations of the previous years.

http://www.portalino.it/nuke/modules.php?name=News&file=article&sid=21111

Extraction takes Petrom's profit to 647 million euros
www.zf.ro

Petrom,the biggest Romanian company, controlled by Austrian petroleum group OMV, made 2.28 billion RON (647 million euros) net profit last year, 61% higher than in 2005. The company continued to benefit from the rise of petroleum prices on the international market.

On the other hand, the company is still losing money from its refining and distribution business.

Petrom's business went up to 3.72 billion euros, an increase of 22%.

"Our results are very good and are a step towards attaining our global goal: to become the leading petroleum and gas company in Europe. Last year's business reassured us that we are on the right track towards attaining the goals set for 2010," stated Mariana Gheorghe, Petrom's chief executive.

In February 2007, TAROM announced the intention of restarting its long haul operations, by leasing 2-4 A343/A333 or B772/B763 [1] and by re-introducing the long haul flights.



You can find some more news on airliners.net civil aviation forum. I am amazed! GO TAROM!

In February 2007, TAROM announced the intention of restarting its long haul operations, by leasing 2-4 A343/A333 or B772/B763 [1] and by re-introducing the long haul flights.
You can find some more news on airliners.net civil aviation forum. I am amazed! GO TAROM!

^^ Cheers for the news and link!!! :cheers:

Nebunul
De ce te chema Nebunul? :)

Can you load more pictures from Romania? I will love to see them.

^^ Nebun dupa Romania :lol: :cheers:

500 Million € Hotels: Accommodation Investments Go Wild

In 2007, the number of the hotel rooms in the Capital will be double and mini-resorts will appear in the areas like the seaside, the Danube Delta, the mountains and the shores of the lakes.
The total value of the investments in the field of hospitality will reach approximately 500 million euros this year, as compared to an estimated level of 420-440 millions in 2006, according to Paul Marasoiu, President of Peacock Hotels.
...
http://www.jurnalul.ro/articol_73897/500_million___hotels__accommodation_investments_go_wild.html

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Hungarian company might invest EUR 80 million in power fuel factory

Hungarian company plans to invest EUR 80 million to develop a bio combustible factory in Nadlac, city situated at the border of Romania and Hungary. The company asked for a plot of 17 hectares which will be put up for auction by the city hall. The factory would consume the entire local corn production of 300,000 tons a year. However Ulerom Vaslui owned by the businessman Adrian Porumboiu will also develop a bio diesel factory and a Spanish group plans to invest EUR 18 million to open a production unit in Iasi.

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Delphi might invest in diesel engines factory in Iasi

American group Delphi is interested to open in Iasi a factory of diesel engines for which the investment might reach a few hundreds million euro, said the city’s mayor, George Nichita. The investors are interested in signing partnerships with Universitatea Tehnica Iasi. The city hall recommended to Delphi two locations at the west entrance near Antibiotice factory and at the east entrance in Holboca area. Delphi has annually sales of some $26 billion and 170, 000 employees in 36 states.

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Mechel to invest $35 million until 2009

Mechel Targoviste plans $35 million investments during 2007 and 2009 to increase the production capacity and to reach the level imposed by UE. The company plans this year to produce 40,000 tons iron monthly and to post a turnover of $250 million. For 2008 the company estimated an increase in production to 530,000 tons. Last year, the company had a profit of EUR 2.6 million and losses of EUR 16.7 million and the turnover increased by 6.3 percent to EUR 190 million.

BCR and BRD start Austrian-French battle in Romania
www.zf.ro

Erste Bank, the majority shareholder of BCR, considers Societe Generale, the majority shareholder of BRD, the second biggest bank domestically, meant to challenge it through its aggressive expansion in 2006 and through its comments on competition in 2007.

"Societe Generale must be planning to challenge our leading position on the Romanian banking market. We are glad to be facing such a challenge because we love competition, we are also fighting in the Czech Republic and Societe Generale is a great rival," states Andreas Treichl, Erste Bank CEO.

BRD last year reached 600 branches, opening 274 new branches, while BCR added 101 branches to its network, for a total of 473.the majority shareholder of BCR, considers Societe Generale, the majority shareholder of BRD, the second biggest bank domestically, meant to challenge it through its aggressive expansion in 2006 and through its comments on competition in 2007.

"Societe Generale must be planning to challenge our leading position on the Romanian banking market. We are glad to be facing such a challenge because we love competition, we are also fighting in the Czech Republic and Societe Generale is a great rival," states Andreas Treichl, Erste Bank CEO. BRD last year reached 600 branches, opening 274 new branches, while BCR added 101 branches to its network, for a total of 473.Last month, while presenting the financial results of BRD-SocGen, the bank's chairman, Patrick Gelin, stated, "the main player on the market, BCR, will be probably undergoing dramatic restructuring in 2007," a reason why competition is not expected to get tighter this year.

"It was a smart move on the part of BRD to say this was a good time to take advantage of to gain market share from BCR, as we would be busy with our own problems. However, we had decided, as early as the end of last year, to step up the expansion of our territorial network, inclusively by boosting the number of new branches to be opened," stated Treichl during a meeting with analysts and investors discussing the Austrian group's 2006 financial results. Treichl considers BCR and BRD are by far the main players on the retail segment. At the end of 2006, according to the data sent to the NBR, BCR had a market share of 26.2% in terms of assets, half a percentage point higher than in 2005, while BRD managed to gain 1.3% of the market, achieving a share of 16.3%. BCR enjoys an overall comfortable lead, but competition on certain segments may put the leader at a disadvantage.

As a reaction to BRD's expansion, BCR will focus on cities with a population of 50,000-200,000 inhabitants, while further vying for the market of Bucharest and of the biggest cities. Treichl's personal priority list includes the modification of BCR employee remuneration-motivation system, so that they would be better motivated to sell. "We have no weak points compared with our competitors. We have products and services. It all depends on the ability of the managers to focus on two fronts in parallel - BCR integration and sales growth."

In a bid to strengthen its position on the retail segment, BCR is currently repositioning its fees and interests, with the process to end in 3-6 months. On the corporate segment, Treichl wants stable relationships with major clients, based on complex financial services.

BCR vs. BRD

BCR added 101 branches to its network, to 473 last year, while BRD reached 600 branches, opening 274 new branches
BCR held a market share of 26.2% in terms of assets at the end of last year, up half a percentage point against 2005, while BRD managed to add 1.3% to its market share, to 16.3%
BCR puts restructuring, modernisation and expansion costs at some 200m euros in 2007
BRD expects overall costs to rise this year as the branches opened in 2006 may become profitable in 2008


Austrians approach a real estate portfolio of 1bn euros

Austrian investment funds remain being the most active players on the local real estate market, where they achieved a portfolio of 900 million-euros, according to real estate consulting company Colliers. Besides the Austrians, the British are among the most dynamic investors involved in the local real estate sector, with U.K. investors' portfolios' including many medium-sized properties, totalling a value of approximately 400 million euros, according to the same source. "The Austrians get involved in most of the big transactions on the market, whereas the British are aggressive, while at the same time flexible, being more likely to get involved in smaller transactions," believes Silviana Badea, Investment Consultant with Colliers.The biggest transaction conducted on the local market had as buyer Immoeast - the most active investment fund present in Romania. The 210 million-euro deal that was sealed (for the Polus Center in Cluj), accounted for almost a quarter of the whole portfolio of the Austrian investors.

Nokia to spend 200m euros on Cluj-based plant

Nokia intends to invest 200 million euros in a mobile telephone factory and a research centre in Cluj. The final discussion between representatives of the County Council and those of the Finnish group would be held by March 20, after which a decision would be made on the possibility of investing in Romania, stated the chairman of the Cluj City Council, Marius Nicoara. Nokia officials confirmed that Romania was one of the locations considered for the opening of a new plant, but declined to provide further details. "Given that demand for mobile phones is seeing a steady increase, Nokia has looked into opportunities of increasing its production capacities in order to meet the growing demand from customers.Nokia confirms that it is examining various opportunities to build a new production facility in a number of locations, and one of the possible locations has been identified as Romania. However, since no final decision has been made on this matter, we have no comment to make, for the time being," Anna Simai, Communications Manager for Nokia Hungary & Romania told ZF.

Renault invest over 1.7bn euros in Logan

Investments conducted by French manufacturer Renault amount to over 1.7 billion euros in the development of the Logan model and its industrial system, namely for the modernisation of plants and newly built facilities in Russia, Morocco and Romania. The funds necessary for building the Logan, Logan MCV and Logan VAN models and the related industrial system, reached one billion euros. Funds for the upgrade of the Pitesti-based plant amount to 489 million euros, according to information supplied by Renault. Renault has invested 230 million euros in the construction of the Avtoframos plant in Russia, which will produce the Logan models. The expansion of the production in Russia to 160,000 units will entail another 116 million euros of investment.The total investments in the production of the Logan model, with the exception of those made in India, done in partnership with Mahindra&Mahindra, Iran and Brasil, stand at a total of 1.71 billion euros.

Romania is top target for foreign investments


Romania is the top option for companies who plan to invest in South-Eastern Europe and will preserve its regional leadership for the next three years as well, according to a survey on investment attractiveness carried out by Ernst & Young (E&Y). :cheers:

Over 58 percent of the companies involved in the study said they planned to invest in Romania in 2007, with 68 percent considering the move in the next three years.

The study analyzes the preferences of 200 primarily Western European companies. The poll was carried out in October 2006 and is the first study conducted by E&Y in the region. The survey was based on two approaches: monitoring FDI projects by using the company database and a poll on foreign investor perceptions of the current and future business environment attractiveness in South-Eastern Europe.“Romania was selected by our interviewees as the most attractive country in the region for foreign investors primarily due to factors like productivity rise, cheap and skilled labor and location availability. Romania will preserve this position in the next three years consolidating its leading position,” said Ernst &Young Romania country manager, Camelia Horlaci.

Horlaci added that Romania had attracted EUR 8.5–9 billion worth of foreign direct investments (FDI) in 2006. FDI might decrease to EUR 6.5-7 billion, according to E&Y estimates. “The drop in FDI was mainly because the privatization process of the large state-owned companies is nearing its conclusion, and in spring the last companies of this kind will be put up for sale,” she said.

Company representatives said that once the privatization of firms such as Daewoo SA, Iasi-based Antibiotice, energy plants, and the producers and distributors of electricity is over, Romania will enter a new stage of FDI, targeting mainly qualitative industries like the service sector and the car and IT industries, which are based more on the production of value-added and less on industrial production proper. Romania is popular due to low taxes on profit, low wages and productivity increase potential. Its weak spots are infrastructure, research centers, political stability and quality of life.

In order to consolidate its position in the next three years, investors expect Romania to improve its telecom and transport infrastructure, administrative policies, create a stable political environment and to improve its research and education system.

The 200 managers see the country as the main investment target in the region for the next three years as well (with 68 percent giving favorable answers), due to the same advantages, followed by Bulgaria – 62 percent, Turkey – 59 percent, Greece – 56 percent and Serbia – 55 percent. From 2001-2005 Romania, Bulgaria and Turkey attracted 85 percent of the FDI projects in the region, with South-Eastern Europe as a whole accounting for six percent of the total investment projects carried out in Europe in the period.

During this time, investments focused on the Romanian production and logistics sector (42,800 new jobs), Bulgarian energy and transport sectors (17,000 new jobs) and consumer good production sector in Serbia (over 6,400 new jobs).

:cheers:

AUTOSHOW-Ford Mulls Russian Expansion, Eyes Romania Bid
www.reuters.co.uk

GENEVA (Reuters) - Ford Motor Co (F.N: Quote, Profile , Research) will consider adding production capacity in Russia to meet rising demand in Europe's fastest-growing major market, the head of the automaker's European operations said on Wednesday.

If Ford succeeds with a bid it is now readying for the Romanian assets of the former Daewoo Motor, that would also open the way for expanded sales in eastern Europe, Ford of Europe Chief Executive John Fleming told reporters.

Ford's cautious expansion in Europe, where the automaker expects to post a fourth consecutive profitable year, is a contrast to North America, where the Detroit-based automaker is shedding jobs and closing plants after a record loss.


Ford expects sales in Russia this year to top the roughly 118,000 vehicles it sold in 2006 and will consider adding manufacturing capacity there over the next year or so, said Fleming, speaking on the sidelines of the Geneva auto show.

"Probably in the next six to 12 months we'll start to firm up on what we want to do," Fleming said. "I think we can sell more vehicles in Russia this year than we did last year, and that's what I'm looking for -- continuous improvement."

Ford, which entered the Russian market in 2000, has a single Russian plant dedicated to its entry-level Focus sedan. That St. Petersburg facility is running near its full capacity of about 75,000 vehicles annually with three shifts.

About half of the cars Ford sold in Russia last year were made there, leaving the rest subject to import duties. Ford plans to roll out its new and more upscale Mondeo sedan for Russia this year, and Fleming said Ford would have to weigh the benefits of expansion against other opportunities.

"We don't have an open checkbook to just do anything we want. So we continue to look at what makes sense for the business," Fleming said. "Yes, it would be nice to expand in Russia, but it's nice to bring a new Mondeo to the market as well. We'll have to look at that balance."

Fleming said that if Ford succeeded in buying the Romanian government's majority stake in carmaker Daewoo Automobile that could also free up more vehicles for the Russian market.

"It's a consideration. The lower we can make the manufacturing costs, the more opportunities there are in the emerging markets," Fleming said.


But he added that was not the only factor for Ford. "I think there's a huge opportunity in Eastern Europe," he said.

Fleming said Ford's focus was on sustainable growth in a European market where overall sales for the industry are expected to be almost flat this year.

"I just want to build the business and the quality of the business rather than just aggressively rushing for volume, or rushing for share," he said.

The Romanian government has said it hopes to wrap up the process by June, after it bought back the majority stake in the company from its bankrupt owner late last year.

So far, Romania has received four letters of intent from General Motors Corp (GM.N: Quote, Profile , Research) and Ford, Tata and China's Chery Automobile.

Daewoo Motor collapsed in 2000. Many of the Korean automaker's other assets were purchased by GM in 2002, which is using its GM Daewoo unit as a hub for global small car development.

Ford, which lost a record $12.7 billion in North America last year, is closing 14 North American plants and cutting 37,000 factory jobs and 14,000 salaried workers as part of a plan to return to profit by 2009.

It is time to put "BUCURESTI" on a world map!

But how?:nuts:

Non charter / Direct New York JFK-OTP Otopeni Direct by Delta

http://www.delta.com/planning_reservations/plan_flight/destinations/new_routes/index.jsp?t_cc=dc0350cs&t_ac=a042611&t_cr=delta&t_cp=11

Scroll down to Europe and you will find it. Despite the reports and news from Croatia, Delta chose to go with Bucharest over Zagreb.:cheers:

DL B767-400

http://www.aeronautics.ru/img/img006/767_001.jpg

Looking for the next metropolis?

Experts state that Danube partners Galati and Braila offer the best potential for real estate investors looking to maximise their return on urban centres

Resting at the portal to the Danube Delta, Braila-Galati could become the largest urban centre in Romania after Bucharest, with almost one million inhabitants living at a strategic apex of the country, making it the next major target for real estate investors.
The distance between the south-eastern Romanian cities is only 30 km and the two local authorities have signed a protocol to unite into a metropolis by 2020. The plan includes a new urban area to link the cities by building residential projects, shopping malls, commercial centres and local Government institutions.
Investors such as Mittal Steel and shipyard firm Damen have already realised the industrial potential in the former state steelworks and shipyards respectively. Now Carrefour is allegedly surveying the area.
DIY store Praktiker, supermarket Billa and cash and carry store Metro are already in the zone, while French firm Union Investitii is building a 50,000 sqm Euromall in Galati with what it claims will be Class A offices, ideally ready from the end of November this year.
Lack of proper infrastructure is the biggest headache for real estate investors. But in this area there are supposed plans to build a highway between the two cities and an airport. There is also a proposal to build a 300 million Euro bridge over the Danube at Braila, linking the regions of Dobrogea, Muntenia and Moldavia. This year the Ministry of Transport plans to release the feasibility study in September and to organise the auction for the bridge.
Low labour cost, labour availability, cheap land, good geographical position, lower transportation cost, access to the port and the lack of good property could transform Galati and Braila into a bullseye for real estate investors, argues investment consultant David Howe. “There is high unemployment in Braila-Galati, there is an abundance of cheap labour that you can no longer find in Bucharest,” argues Howe.
Also the land high fertility of the Baragan plain to the south of the cities, if exploited by agricultural entrepreneurs succesfully, could bring a lot of money to the area.
“Braila-Galati could see almost one million people next to the most fertile agricltural land Romania and probably the best in Europe after Ukraine,” says Ilias Papageorgiadis, managing director of real estate firm More Romania. “Agricultural production will bring a lot of money here and Constanta will be the place to send products by ship.”
According to real estate specialists, prices in Braila are similar to those in Bucharest five years ago and the best place to invest in land is Brailita, where prices are 100 to 150 Euro per sqm. For property investments it is advisable to buy in the more developed part of the city, such as the centre, close to transport links.
“The old apartments in Braila have prices of 600 Euro per sqm but they need renovation,” says Papageorgiadis. “Following this, the price could go up to 900 to 1,000 Euro per sqm, but there will new apartments will be built for this price, so why bother?” he adds.
“Galati will also expand, but Braila is more attractive for business because it has lower prices.”

http://www.thediplomat.ro/real_estate_0307.htm

^^
Does it allow foreign investers to buy real estate? 100 to 150 Euro per sqm is really cheap.

Bankers drop down payment on loans in anticipation of new NBR regulations

Bankers are getting ready to announce cuts in the minimal down payment they require from those taking out a real estate loan, without waiting for the regulation of the NBR lifting the restrictions that have capped lending over the last few years to come out first.

Alpha Bank announced on Friday night that it would require a down payment of no more than 15% for mortgage credits compared with the at least 25% at the moment. Banca Transilvania launched a real estate loan of up to twice the value of the building pledged as security last week without requiring the client to make an upfront payment, either.Volksbank, a very aggressive player on the retail market in turn is getting ready to modify lending terms, and is therefore considering a cut in the down payment required for real estate loans, among others.

The Greeks at Alpha Bank, who were some of the real estate loan pioneers in 2001 are now announcing they are willing to drop the down payment completely, if the evaluated value of the building is higher than its acquisition value. Sergiu Oprescu, chief executive of Alpha Bank, feels that clients will no longer need "substantial savings" to take a loan under the new terms. Oprescu had been sceptical about completely dropping the down payment for mortgage loans in the past, arguing that such a policy would leave the bank vulnerable to possible price adjustments on the real estate market. Robert Rekkers, chief executive of Banca Transilvania, said at the launch of the new loan last week that he expected the down payment on real estate loans to go down to an average of 10-15%.

Both Alpha Bank and Banca Transilvania will apply the new lending terms once the new regulations of the NBR come into force.

Volksbank is discussing the change of the lending policy today, and is considering introducing several tranches for the down payment on real estate loans, says Alin Merer, the bank's marketing manager.

Meanwhile, the official document that relaxes regulations on crediting to individuals has gone through all the necessary steps through the NBR and should reach the Official Gazette for publication today.

The members of NBR's Board of Governors on Friday signed the new Regulation on lending to individuals, which abrogates guidelines 10/2005, and 20/2006.

These guidelines made it mandatory for lenders to require a down payment of at least 25% for real estate investment loans. The indebtedness of the customer (total commitments deriving from loan contracts in the monthly net income) was not allowed to exceed 40%.

The new Regulation will enforce three days from publication in the Official Gazette. It usually takes a few days up to a week from the day a document is sent for publication in the Official Gazette until it is actually published.

"The new regulation will bind banks and non-bank financial institutions to devise their own internal regulations, which will be approved by their respective management and validated by NBR's Supervisory Department," Adrian Vasilescu, advisor to the NBR Governor was quoted as saying by Mediafax.

Constructions see record-high growth in Q4

The constructions market was the field that experienced the fastest growth in the entire economy last year, witnessing a triple growth rate in the last quarter as compared to the overall economic growth. Compared with the growth of the Gross Domestic Product (GDP), of 7.7% in the fourth quarter of 2006, the constructions field increased by 21.6%. As a result, the constructions market increased its share in the GDP from 6.3% in 2005, to a little over 7% last year, according to data published by the National Statistics Institute. Although constructions saw the fastest growth, the sector of services, with a 50% share in the GDP, provided the largest contribution to economic growth.Services went up by 7.3% last year, but, unlike constructions, slowed down in the last three months of the year. After an 8.5% increase in the third quarter, services fell to 6.5% growth in the final quarter. The same slowdown was witnessed by the industry sector, which, after a 7.9% increase in the third quarter, the biggest increase seen in the last few years, only managed to grow to 6.6% in the final quarter, ending the year at 6.9%. The agriculture sector remained a weak point in the economy, managing a mere growth of 3.3% last year, reaching an 8% share in the GDP, compared with the 12.6% share held in 2004, a year with a record-high in agricultural production. "After an exceptional agricultural year in 2004 followed by a weak one in 2005, agriculture experienced a much slower pace in 2006, but is now heading for recovery," said Vergil Voineag, president of the National Statistics Institute.

Autoliv invests 30m euros in plant in Lugoj

Autoliv, a Swedish producer of security systems, which owns a plant in Brasov, will invest 30 million euros in developing a centre for the production of seat belts and airbag components in Lugoj. Autoliv acquired a 12-hectare plot in Lugoj, with a value ranging from 1.2 to 1.4 million euros, according to representatives of the local Town Hall. "We have suggested several locations to Autoliv, and they chose to acquire a 10-12-hectare plot from an individual. The price is likely to have stood at 11-12 euros per square metre, and the total investment amounted to some 30 million euros," stated Liviu Savescu, spokesman for the Lugoj Town Hall.Autoliv representatives did not wish to provide information on this subject. The company conducted two share capital increases last year, of almost 14 million euros. In 2005, the local subsidiary of the Swedish producer reported losses worth 1.2 million euros, with a turnover standing at 12.9 million euros.

www.zf.ro

^^
Does it allow foreign investers to buy real estate? 100 to 150 Euro per sqm is really cheap.

Yes. You're welcome to invest ... :cheers:

Yes. You're welcome to invest ... :cheers:

Invest in this case means speculate with real estate... I think it's not that positive...!

^^ ???? Wrong ! It's called free market ... supply/demand

Statement at the Conclusion of the IMF Mission to Romania
Press Release No. 07/38 www.imf.org
March 6, 2007

The following statement was issued today in Bucharest, Romania, at the conclusion of an International Monetary Fund (IMF) staff mission:

"The IMF mission that visited Romania during February 21-March 7, 2007, held the regular annual consultation with the Romanian authorities. The final report on the discussions will be presented to the IMF Executive Board at the end of May. Accession to the European Union was a significant milestone that followed a period of important accomplishments. Output growth was strong in 2006, substantial disinflation took place, and unemployment fell sharply. While prospects remain positive, there is no room for complacency for Romania to bridge the significant gap that still exists with EU living standards. The confluence of positive factors that led to the positive developments in 2006 cannot be counted on to continue. The external environment has been benign, but, as witnessed in early March in various prominent international markets, can quickly become volatile and unpredictable.

"While the mission is encouraged by the positive results in 2006, it believes that more attention is required on addressing the vulnerabilities in the economy, particularly the balance of payments, in order to sustain the good results. The current unsettled external environment and increased risks due to the widening current account deficit, place a high premium on appropriate fiscal and monetary policies as an insurance against sudden shifts in market sentiment. To support the macroeconomic objectives and relieve some of the pressure off monetary policy, the mission strongly urges the authorities to tighten fiscal and wage policies. In light of the ongoing private sector boom and in order to preserve macroeconomic stability, we favor a withdrawal of fiscal stimulus by aiming for a general government deficit of below 1 percent of GDP this year, and a smooth path for medium-term fiscal consolidation. A single annual wage increase should be incorporated in the state budget commensurate with lending support to anchoring low inflation expectations.

"The authorities' emphasis on real convergence prior to euro adoption underscores the urgency of structural reforms. While we agree that the envisaged timetable for euro adoption represents a pragmatic recognition of political economy constraints, we also see a risk that it can lead to a more gradual implementation of policies needed for convergence. We therefore recommend that a balanced approach in this area also contains the right incentives for accelerated reform.

"We understand that the authorities are to publish shortly the concluding mission statement in line with established practice."

TAROM budgets 135m-euro investment

TAROM (The Romanian National Air Transport Company) has budgeted investments worth 135 million euros for this year, four times bigger than last year, according to the company's spending and revenue's budget. The bulk of the money will go to the acquisition of two Airbus A318 aircraft. At the end of 2007 the company will receive the last two out of four A318 aircraft that were contracted in 2004, valued at 114.5 million dollars. The two aircraft are used for such destinations to Brussels, Frankfurt, Istanbul, Larnaca, Munich and Tel Aviv, according to information on the company's website. Most of the company's investments will be paid for with bank credits - 140 million RON (40 million euros), as well as with the company's own funds - 33 million RON (9.4 million euros). The self-funded investment programme of TAROM will target several areas - construction and assembly works, imports, investments in various locations in Romania and major repairs for engines and aircraft.

Finnish operator Finnair enters local market

Finnish airline Finnair will begin operating a flight on the Helsinki-Bucharest route on April 10, with a frequency of four flights a week, according to information on the company's website. Romania is the third new destination announced by the Finnish operator for this spring, after flight routes to Lisbon (Portugal) and Ljubljana (Slovenia's capital). A Bucharest-Helsinki roundtrip with Finnair will cost around 888 RON (250 euros) in the economy class, according to information on the company's website. Another company that operates on the Bucharest-Helsinki route is Hungarian operator Malev. The minimum price for a roundtrip stands at around 200 euros, according to the same sources.

Siemens announces plan to take over Frosys

Siemens SRL has announced it intends to take over 100% of the shares of automation company Frosys SRL, based in Cluj-Napoca. It also intends to integrate the Cluj-based company into its division of Industrial Solutions and Services. In 1996, Frosys became Siemens' authorised partner in the field of electrical drives and industrial automations. After the signing of the partnership, Frosys developed co-operation with Siemens by expanding its activity in the field of medium voltage equipment, as well as opening an the only authorised Siemens service and repair centre in Romania that handles variable speed drives. Shortly after the opening of the local office in Cluj-Napoca, Siemens representatives announced the intention of the German company to invest in upgrading the production facilities of local partner Frosys, the Cluj-based company, to implement industrial automation projects developed by Siemens.According to data available on the website of the Finance Ministry, Frosys posted a 6.1 million-euro (22.1 million-RON) turnover and employed 80 people in total in 2005.

BCR and Erste set up housing bank

S Bausparkasse, the housing savings and loan bank of Erste Bank, is to establish a subsidiary in Romania together with BCR, Astrid Kratschman, head of S Bausparkasse operations in Central and Eastern Europe told ZIARUL FINANCIAR. "We've got concrete plans to establish a savings and loan bank together with BCR. We coordinated our efforts with those of our colleagues from BCR in building the business plan and are ready to submit it for the approval of BCR's and S Bausparkasse's Boards of Directors," Kratschman says. She adds that S Bausparkasse has the experience of subsidiary development in the Czech Republic and Slovakia, where it is seeing "substantial" market shares.BCR will focus "more" on potential customers with medium and small incomes. With this in mind it plans to establish a savings and loan bank for housing, to achieve a better analysis of customers based on the experience of Erste Bank, the majority shareholder, Nicolae Danila chief executive of BCR stated yesterday. "The average and below-average customer income area needs the most support, as this is where potential growth may be located in the future," Danila says. Additionally he believes the state should be more involved in stimulating housing supply. Under the current legislation, the housing savings and loan systems, such as those created by Raiffeisen Banca pentru Locuinte (Raiffeisen Housing Bank) and HVB Banca pentru Locuinte, receive support from the state in the form of a bonus worth 15% of the amount saved by the customer in one year- not exceeding 150 euros.

Celesio distributor considers drugstore chain

German group Celesio, the biggest European drug distributor, is considering expanding on the Romanian market through a drugstore network, according to the German newspaper Sueddeutsche Zeitung, quoted by Forbes. Representatives of the German group, a business worth over 20 billion euros, did not specify whether they would enter the local market through the acquisition of a drugstore network or whether they would develop their own brand. In 2005, Celesio acquired Slovenian company Kemofarmacia, the majority shareholder of the local distributor PharmaFarm in Cluj, therefore indirectly entering the local market. PharmaFarm representatives could not be contacted for additional information. Celesio's plans for Romania are part of a broader investment plan, which also includes the launch of a retail network in Germany, granted that legislation allows it, and also networks in Hungary, Poland and Bulgaria."We are ready for an expansion on the market," said Fritz Oesterle, CEO of Celeste. Celesio operated an over 2,000-drugstore network in the UK (1,527 outlets), Norway (120 outlets), Italy (162 outlets), the Netherlands (51 outlets), Ireland (58 outlets), Belgium (82 outlets) and the Czech Republic (45 outlets), through its retail division.

www.zf.ro

Romania to Become Favorite Travel Destination Says Ways Travel

NewswireToday - /newswire/ - Bucharest, Romania, 03/12/2007 - Investments in tourism infrastructure deliver results: over 500.000 foreigners visited Romania in December 2006. More to come as the country makes use of it's assets.
Preparing to join the European Union, Romania has taken on the task of developing the tourism infrastructure to take better advantage of the local opportunities. The Government deployed €325 million for tourism investments between 2005 and 2007. The improvement and construction of nature trails, recreational ports and holiday spas are the main objectives.

In December 2006, it became obvious that Romania was going places. Better said, it became obvious that others were going places in Romania: visits by foreigners jumped 20% in reference to the same time of the previous year, according to the Romanian National Statistics Institute.

The funds allocated bring into the spotlight the cultural and economical potential of Romania. Situated in the meeting point of european cultures, the country offers an unparalleled travel experience.

One can hold a team building on one of the youngest lands in the world – the Danube Delta – or arrange a business conference in a picturesque, historical city like medieval Sibiu – the 2007 European Capital of Culture.

You can host a company's anniversary banquet within walking distance from the misterious Castle of Dracula, situated in Braşov and retreat to a private wine tasting in a remote yet comfortable mountain caban, high up in the Carpathian Mountains. You can take your business partners to see the world renouned unique Voroneţ Blue or the childhoof house of Constantin Brancusi.

Alongside the strong cultural enharitance of a Dacic–Roman country, Romania offers has the resources to modernly accomodate top level business events. Recently visited by Microsoft's Bill Gates, Bucharest, the capital city of Romania, has proven it's business travel potential many times over.

"Travelling to Romania for business purposes can prove to be a very inspired decision. The country reunites culture and economical progress as it expands towards a new dimension as a EU country. Properly managed, with all the logistics and support assured by local professionals, that have a thorough understanding of the local market and have the necessary resources, a business trip can seem like a true vacation”, according to Răzvan Balint, Executive Manager, Ways Travel, having over 20 years of experience in the field of business travel industry. "We've organized events in Romania for renouned companies such as Adobe or IBM and the general impression has always been of the best nature. Ranging from the attractivenes of the country itself to the impecable service and outstanding hospitality of the Romanian people, we've heard only the best from first time and returning visitors.”

Magda Neagu, Channel Sales Account Manager for Adobe recalls the event held in Romania in October 2006: „We held the Adobe Acrobat Reader 8 launch in a magnificent location in Bucharest – The Athenee Palace Hilton – through Ways Travel and their public relations partner, New Media Agency. It was an ample event, including seminars and conferences. Not only the logistics but the overall atmosphere were impecable and we're strongly considering returning to Romania for other events, maybe even something more on the leisure side.”

Building on a solid base of cultural attractions and modern day facilities, Romania is expected to be the fastest growing tourism industry in Europe for the next 10 years, according to the World Travel and Tourism Council.

www.newswiretoday.com

Egnatia tries to gain market share on project finance segment

Egnatia Greek group has impressive investment plans for Romania, which include direct involvement, through either financing or capital, in project development.
In the case of interests in the firms developing projects, the group will use special financial vehicles registered in Greece. The domestic branch of the group is a small bank. Owning assets worth 227 million euros, Egnatia Romania accounted for 0.5% of assets in the system at the end of last year, and was positioned somewhere at the middle of the ranking.
"Through our parent bank, we will have a business network related to the development of projects in important sectors," Stylianos Sofianos, chairman and general manager with Egnatia Romania, told ZF.By participating in the capital of some companies, Egnatia will get involved in the development of important projects and will finally cash in on its gains by withdrawing from these investments. Sofianos has not disclosed the sums to be invested in these projects, pointing out, though, that they would be considerable. Targeted sectors include real estate, energy, heavy industry or the IT sector. The first projects are already about to be signed, but partner names cannot be revealed for the time being.
At present, Egnatia is involved in a merger with Marfin Bank of Cyprus. Sofianos estimates the process will end at the middle of this year and the bank will afterwards embrace a more aggressive policy on the domestic market as well, as this is considered a strategically important for the group.
Until then, Egnatia is growing organically, by expanding its branch network. In the first half of this year, six branches will be opened, taking the bank's network to 14 branches. By December, their number should climb to 20. "Last year was better than we'd expected. In 2007, we want to expand our business to a significant extent. We target double assets, while net income should go up to some 4 million euros," says Sofianos.
In 2006, Egnatia derived net income worth 3.7 million euros, from 2.1m euros in 2005. The bank's assets last year more than doubled, surging from 103 to 226 million euros. This way, the bank's market share increased from 0.3 to 0.5%, with Egnatia climbing six positions in the bank ranking.
Loans granted to customers rose by 89%, to a little more than 119m euros. Retail lending amounted to almost 18m euros, 3 times more than in the previous year. Egnatia has recently started offering retail products and services, launching home equity loans last year. Deposits from clients went up by 117%, to close to 78m euros in December.
Egnatia is also getting ready to launch private banking services. This year, the bank will invest around 5 million euros in the opening of new branches, the launch of new products and the implementation of technologies supporting the development of its retail offering.

Egnatia Romania

Posted net income worth 3.7m euros in 2006, from 2.1m euros in 2005
Its assets more than doubled last year, from 103 to 226m euros, with the bank's market share advancing from 0.3 to 0.5%
Plans to get directly involved in the development of projects in important sectors
Intends to open six branches in the first half of this year, taking the network to 14 branches

Siemens VDO invests 25m euros in 2 new facilities


Siemens VDO, the division that handles automotive components production within the German group Siemens, invested 25 million euros last year in the construction of a production centre in Timisoara and a research & development centre in Iasi, with the projects to be completed this year. "In 2006 we opened two new locations, an R&D (research & development) centre in Iasi and a production facility in Timisoara. In total, we invested 24.7 million euros in Romania last year. In 2007, we want to develop the new locations," stated Christian Ruedinger, CEO of Siemens VDO Romania. The value of investments for this year was not revealed. Siemens VDO posted a 34.7 million-euro turnover last year, up 21% against the level for the previous year. Siemens VDO Automotive Romania owns two facilities in Timisoara. One is an R&D centre - that works for the German based parent company, developing software, hardware and mechanical design for various clients. The other is a production facility that manufactures airbag control units. "For R&D products, our main customer is Siemens VDO Germany, while the other production facility supplies airbag control units for Suzuki Hungary," said Ruediger. The number of employees of the German producer has gone up from 10 people in 2000, the year the company entered the market, to more than 1,500 at present.
www.zf.ro

IMMOEAST Acquires Shopping Centre in CONSTANTA

IMMOEAST AG has finalised another large-scale investment in Romania, with the acquisition of the Polus Center Constanta in Constanta, Romania. The project is a shopping centre with total usable space of 90,000 m². Construction will begin in summer 2007 with completion planned for fall 2008. The acquisition is taking place in the form of a forward purchase upon the completion and letting of the property. The overall investment volume is 185 million Euro.

... http://www.immoeast.at/english/05news/news/news_15032007.htm

*************************************


Hill International Joint Venture Awarded Contract to Supervise Design and Construction of a By-Pass highway project in CONSTANTA, Romania.

MARLTON, N.J. & BUCHAREST, Romania--(BUSINESS WIRE)--Hill International (Nasdaq:HINT - News), the worldwide construction consulting firm, announced today that a joint venture in which Hill is the lead partner has been awarded a contract from the Romanian National Company of Motorways and National Roads to manage the design and construction of the Constanta By-Pass highway project in Constanta, Romania.

... http://biz.yahoo.com/bw/070309/20070309005383.html?.v=1

:cheers:

^^ I followed the link... and I've got to say that Immoeast AG seems to be investing a lot in Romania. Here's their portfolio:

Bucharest - Baneasa Airport Tower (Offices)
Bucharest - Bucharest Corporate Center BCC (Offices)
Bucharest - Feper (Offices)
Bucharest - Global Business Center (Offices)
Bucharest - Iride Business Park (Offices)
Bucharest - Jandarmeriei Street 5-9 (Offices)
Bucharest - Otopeni (Offices)
Bucharest - Petricani Street (Offices)
Bucharest - Pipera Center I (Offices)
Bucharest - Pipera II (Offices)
Bucharest - Jandarmeriei Street 5-9 (Apartment)
Constanta - Harbourside Constanta (Retail)
Craiova - EKZ Craiova (Retail)

Copper bankers require 600 million dollars

Copper and wire manufacturer Cuprom has hired international banks Merrill Lynch and Deutsche Bank to raise 600 million dollars (450 million euros) to finance the acquisition of assets and licences from RTB Bor, the copper mining site the Serbian state is selling.

"An agreement has been concluded, with the two banks set to raise the money and I don't think there will be any problems. We anticipate to recoup our entire investment in about 8 to 10 years and turn the complex in Bor around in 3 to 4 years," stated Horia Simu, general manager of Cuprom.

The Romanian company controlled by two former bankers formerly employed by Citibank Romania- Horia Simu and Horia Pitulea, posted 210 million dollars (157 million euros) in turnover and 15 million-dollar profit. Cuprom owns two facilities in Baia Mare and Zalau, and now intends to expand to Serbia, where it won a tender to buy copper mines of the RTB Bor company. At present, the Serbian company is losing about 45 million dollars (36 million euros) a year.

Cuprom will have to pay 400 million dollars for the assets of RTB Bor and also an investment commitment worth 200 million dollars for the next four years.

Simu and Pitulea along with Ionut Costea, the current chairman of Raiffeisen Banca pentru Locuinte (Raiffeisen Housing Bank) bought the factories in Zalau and Baia Mare a few years ago, which they managed to restructure and make profitable.

At present, Cuprom is attempting to expand. Apart from the business in Serbia, the "copper bankers" are running a consortium that has been in talks over a partnership contract with the Romanian state since November for the mining operations in Moldova Noua and Abrud, which were halted two or three months ago and the employees laid off and offered redundancy packages. Other than Cuprom, the consortium also includes Energo Mineral, a company that specialises in trade in non-ferrous ores and Ipronef, an institute that conducts non-ferrous metallurgy research.

According to Cuprom management, the deadline for the talks with the state expired yesterday, a time at which a last meeting was to be held.

"We hope to reach an agreement but I am sceptical about it. All our attempts so far have not received an answer, for example the decisions relating to state provided guarantees for mining licences, as well as the sale of unencumbered assets, as is the case with the transaction in Serbia," Horia Simu stated.

Mining companies Cuprom Abrud and Moldomin Moldova Noua have large debts to various debtors, as such there is a risk that their mining licences could be withdrawn if a debtor files for the bankruptcy of the two.

"We offered to invest 150 million dollars in the two Romanian mines for which we do not have the licences guaranteed, while investments for the four mines in Serbia amounted to 200 million dollars," Simu says.

Cuprom explains that delaying the resumption of the operations of the two mines causes the quarries to deteriorate and it may take as much as three years and plenty of capital to restore them to optimal operating parameters.

If its negotiations with the Romanian party are successful, Cuprom could become the fourth biggest operator in the European copper industry.

www.businessromania.ro

River Invest to compete on logistics market

River Invest, developer of Sema Parc, is buying a 40-hectare plot for a new project – this time industrial and logistics. As for the mixed compound already underway, company president Ion Radulea says the firm is in talks with hotel developers to bring a five-star brand to their project. River Invest has already teamed up with ECE for the commercial area and sold two office buildings to investment fund Europolis.

...

***********************************

ProLogis starts work on second phase of Park Bucharest A1


American developer ProLogis will soon start work on the second phase of its ProLogis Park Bucharest A1, the logistics project underway in western Bucharest, Muler Onofrei, market officer for Romania, told Business Review.

By Corina Saceanu

The first two buildings in the first phase will soon be finalized. The second phase of the project will consist of six buildings offering more than 150,000 sqm.

The developer has so far leased or is in discussions to lease around half of the first phase of the project, Onofrei added. The project is being developed on a 56-hectare plot. Logistics company Kuehne + Nagel has recently leased 10,700 sqm of the first phase.

The developer is looking at other areas in Bucharest for further developments and is also currently considering cities like Timisoara, Brasov and Ploiesti for future logistics projects. However, the company hasn’t decided anything yet for a future development. “The south of the capital won’t become a big attraction for logistics developers, as it connects Bucharest with fewer cities. Western Bucharest is still the major attraction. The exit to the future Bucharest-Brasov highway will become a second center of interest for developers,” said Onofrei, adding that less than half of the plots available in the western part of the city have been used for industrial developments.

“The biggest problem is not the lack of land, but the lack of utilities,” said the market officer. The lack of utilities may ruin a project which looks good on paper, he added. In his opinion, utilities for a typical industrial project in Bucharest could cost between EUR 5 and 10 per sqm, depending on how far the location is from the utility connection and its capacities.

The western part of Bucharest, known for its logistics projects, is divided into two areas of development. The first, close to Carrefour Militari, with a first exit to the Bucharest-Pitesti highway, is mainly covered by box retail. “Most of the plots in that area are already part of future industrial projects, or at least an urbanism decision on their use has been already taken,” said Onofrei.

A second area of development would be further out, close to where ProLogis is buildings its project. This area is suitable for outlet centers. The American developer wouldn’t be interested in expanding ProLogis Park Bucharest A1, which has already doubled from initial announcements. “We have 56 hectares, which is already the upper limit for a logistics park,” said Onofrei.

The park will feature 12 buildings and more than 317,100 sqm of distribution space at full build-out. The estimated value for the entire project is EUR 160 million.


******************************

BSR Europe builds housing in Ploiesti

BSR Europe, a subsidiary of Israeli developer BSG Investment, has purchased an 11,000-sqm plot in Ploiesti on which to develop a housing project, company representatives told the media.

By Corina Saceanu

The residential compound will feature around 200 homes and be worth some EUR 10 million in investment with construction works scheduled to start this April. The compound will include six buildings with eight to ten floors each, totaling some 18,000 sqm of built area. It should be finished in a year and a half.

The firm has also purchased a 40,000-sqm plot in the Pantelimon neighborhood of Bucharest where it plans to build approximately 1,100 apartments with an investment of around EUR 80 million. Work on the project in Bucharest should start in four to five months, according to company representatives.

In the middle of last year, the company announced a EUR 100 million investment in a residential compound close to the Botanical Gardens in Bucharest. The project, on some 35,000 sqm, should include between 900 and 1,100 apartments.

BSR Europe is also currently working on the West Park project, which required EUR 35 million in initial investment. The project was acquired last year from developer Rom Canada for some EUR 14 million. Located in the western part of the capital, it will feature over 900 apartments. The total investment is scheduled to reach roughly EUR 60 million.

The company has recently announced the sale of several assets in its portfolio to AFI Europe, an Africa-Israel Properties subsidiary. The transaction won’t include properties in Romania, only assets in Latvia, Poland and Bulgaria, company officials have said.

According to international media, BSR Europe reached an agreement with AFI Europe for the sale of properties around Europe totaling approximately EUR 135 million. Although company officials ruled out the possibility of selling Romanian properties, when the transaction was reported to Tel Aviv stock exchange, selling Romanian properties was among the options.

BSR Europe is the European division of BSG Engineering & Development, whose main shareholder is businessman Eitan Eldar, the owner of developer Euro Habitat. The latter has invested EUR 70 million in Planorama residential compound in Bucharest.

Inflation rate down to 3.81 in past 12 months

Romania’s year-round inflation rate dropped to 3.81% from 4.01% by end of January, the latest National Statistics Institute-INS data show. In February, inflation stood at 0.04%, up from 0.02% in January. According to the INS, there was no sensible rise of prices in February, compared to the previous months.

Food products that reported the highest price rises (over 1%) are vegetables and sugar, with prices going down most for eggs, meat and canned meat.

Non-food products that gre more expensive are tobacco and cigarettes (+1.2%), other non-food goods, and chemical products, while prices decreased for fuel (-1.2%), pharmaceuticals (-0.6%) and sports and cultural products (-0.2%).

Services prices reported a 0.4% growth based mainly on higher water, sewage, cleaning and car services tariffs.


The inflation target set by the National Bank in 2007 stands at 4% +/-1% with a forecast inflation of 4.7%.

hotnews.ro

Comnord builds 420 flats in Militari district

Bucharest-based construction company Comnord, is to develop a residential project comprised of ten blocks of flats situated in the Militari district, in the Western part of Bucharest. The complex, named Ten Blocks, will consist of 420 flats with areas ranging from 42 to 192 square metres and prices starting from 44,000 euros plus VAT for studios, to 210,000 euros plus VAT for penthouse flats. The blocks' basements will accommodate 257 parking spots, with another 254 spots to be built nearby. The first four buildings are set for completion in September next year, while the second phase's deadline for completion is March 2009. The company has 16 years' experience on the local constructions market. Among its projects, either completed or underway, are residential complex Washington Residence, Baneasa Residence and the Petrom headquarters on Calea Dorobantilor (Dorobantilor Street). According to the latest available information, the company's main shareholder is Sorin Creteanu, who holds 57.4% of Comnord's shares, 33.3% are held by Naveco Limited , with 6.1% owned by Sterie Tivichi and other shareholders.

Hirsch plans 1.2m-euro investments

Hirsch Porozell, which is part of the Hirsch Servo AG Austrian group, has budgeted investments worth some 1.2 million euros (4.5 million RON) for this year, in developing the production capacities of the expanded polystyrene plant in Rascruci, Cluj county. The production facility has an annual capacity of 360,000 cubic metres and in the wake of investments planned for this year, Hirsch Porozell will ultimately utilise around 80% of this capacity. The Austrian group started production in Romania in September 2006, following an investment exceeding 4 million-euros. "We ended the year with an 850,000-euro (3 million-RON) turnover, from only 3 months of sales. In addition, it is a well-known fact within the industry, that starting in December the demand for expanded polystyrene decreases by 70%, Mircea Popescu, general manager of Hirsch Porozell Romania told ZF Transilvania. The company management estimates the turnover for this year to exceed 3.4 million-euros (12 million-RON). "We are counting on the growth of the constructions market, as well as on the behaviour of the users of this material, that is we hope that the beneficiaries and companies performing thermal insulation of buildings will use at least 10 cm-thick polystyrene boards," specified Mircea Popescu.

ING relies on chip cards

ING Bank will implement the chip technology into all the cards in its portfolio and also plans to develop payment acceptance systems that are compatible with this technology. At the beginning of this month, the bank had a portfolio of 320,000 cards, 37% (around 121,000) of which had the chip technology incorporated. At present, ING only issues smart cards, which include the microchips. Those previously issued will be replaced as their validity expires, while credit cards launched in the last part of the year will also incorporate the new chip technology. Since winter, the bank has started to develop a compatible payment acceptance system by setting up 157 POS devices compatible with the EMV (chip) technology. "We want to develop this activity and hope to have thousands of POS devices set up by the end of the year," comments Adrian Apolzan, manager of the Retail Client Service department of ING Bank. In addition, Adrian Apolzan says that as the POS network expands, it will be possible to develop partnerships with retail partners creating programmes that ensure the customer loyalty.



www.zf.ro

Bucharest – Total value of real estate projects initiated in 2007 aprox. 4 billion Euro


Bucuresti, aspirator pentru banii din imobiliare
20 Martie 2007, http://www.evz.ro/article.php?artid=297125

Valoarea proiectelor imobiliare initiate de la inceputul acestui an in Capitala este de peste patru miliarde de euro.
"Este un lucru extrem de imbucurator, dar in aceeasi masura si ingrijorator pentru ca municipalitatea trebuie sa tina pasul cu furnizarea infrastructurii necesare pentru dezvoltarea acestor proiecte", a spus primarul general, Adriean Videanu.
El a mentionat ca cererea de spatii de locuit este de circa 4,8 milioane de metrii patrati, iar in urmatorii trei sau patru ani, circa 40.000 de persoane vor avea nevoie de locuinte, ca urmare a retrocedarii caselor nationalizate.
De asemenea, studiile Primariei arata o cerere pe piata spatiilor de birouri de circa 1,8 milioane de metri patrati.
Pe de alta parte, Videanu a precizat ca sunt zone care s-au dezvoltat din punct de vedere imobiliar, dar nerational si fara sa dispuna de infrastructura necesara.
"Zona Iancu Nicolae s-a dezvoltat foarte mult in ultimii ani, dar in acest moment este o bomba ecologica deoarece s-a extins fara infrastructura, fara canalizare, fara infrastructura de comunicatii. Va fi foarte greu sa corelam acest sistem depasit cu sistemul pe care il vom dezvolta in Bucuresti", a precizat Videanu.
El a facut o trecere in revista a proiectelor pe care municipalitatea le are in vedere pentru perioada urmatoare, care potrivit estimarilor se ridica la 3,8 miliarde de euro.


Dawnay Day invests 135m euros in Cluj and Arad

British investment and financial services group Dawnay Day, owner of the Brasov-based commercial centre MacroMall, says it will invest 135 million euros in two real estate projects in Cluj-Napoca and Arad within the next two years. The first project, which has started construction on the site of the former Tricotaje Somesul plant located in Cluj-Napoca city centre, amounts to 85 million euros. The project will include a four-star hotel, a business centre with a total surface area of 10,000 square metres, as well as some 32,000 square metres of retail space. The Tricotaje Somesul plant held an 18,000 square-metre plot of land in the area. This project will be developed as a joint venture incorporating Dawnay Day Pan Terra and Atrium Centers, with the new real estate centre to be called Atrium Center Cluj. Atrium Centers is a British-owned company, specifically established in order to manage and develop the project.

www.zf.ro

Romania is advancing, as it seems to me, at a really good pace :applause:

Germanwings will be the fourth discount airline to enter the BG market. We already have:

1. Wizz Air from Hungary/Poland
2. Sky Europe from Slovakia
3. My Air from Italy

^^

Germanwings low-cost company to fly to Bucharest as of March 25

Published: 13.03.2007
Source: ROMPRES

The low-cost air company Germanwings, a division of Lufhansa, will fly to Romania as of March 25, company officials told Rompres.
Germanwings will fly from Cologne to the Otopeni Airport in Bucharest on Wednesday, Friday and Sunday. The cheapest return ticket will cost 19 euros. 'Starting on March 25, the German company will operate on our airport flights from and to Cologne, but in future some other German cities can be involved,' said communications head of the Otopeni Airport, Stefan Mladin.

Original article: http://www.rompres.ro

Autoliv invests 30m euros in plant in Lugoj

Autoliv, a Swedish producer of security systems, which owns a plant in Brasov, will invest 30 million euros in developing a centre for the production of seat belts and airbag components in Lugoj. Autoliv acquired a 12-hectare plot in Lugoj, with a value ranging from 1.2 to 1.4 million euros, according to representatives of the local Town Hall. "We have suggested several locations to Autoliv, and they chose to acquire a 10-12-hectare plot from an individual. The price is likely to have stood at 11-12 euros per square metre, and the total investment amounted to some 30 million euros," stated Liviu Savescu, spokesman for the Lugoj Town Hall.Autoliv representatives did not wish to provide information on this subject. The company conducted two share capital increases last year, of almost 14 million euros. In 2005, the local subsidiary of the Swedish producer reported losses worth 1.2 million euros, with a turnover standing at 12.9 million euros.

www.zf.ro

LUGOJ - another small romanian city touched by the fever of development ! (http://en.wikipedia.org/wiki/Lugoj) :cheers:

Traktionssysteme might invest EUR 10 million in production unit in Lugoj

Austrian engine producer for trams and trains Traktionssysteme might invest in Lugoj EUR 10 million to develop a production unit on a plot of 10 hectares, said the city’s mayor, Marius Martinescu. The investment should be finished in 2008.

Dacia Pitesti generates 10% of Renault's entire profit

Automobile manufacturer Dacia made a net profit in excess of 100 million euros last year, an increase of over 76% compared with the previous year, as a result of a surge in Logan exports.
"The increase in the production capacity and implicitly in production allowed us to achieve a better industrial performance, which translated in cost cuts," explains Fran'ois Fourmont, Dacia general manager.
Under the circumstances, the profit growth clearly outpaced the growth of sales, which reached almost 1.55 billion euros last year, almost 30% more than in the previous year.
"We took advantage of a better product mix. We stopped making Solenza (more than 5,700 cars in 2005 according to the statistics of the Association of Automotive Manufacturers and Importers - APIA, i.e.), but started production on the Logan MCV (more than 8,500 units in 2006, i.e.). In addition, we offered several engine versions for Logan models," Fourmont adds. Therefore 2006 becomes the second year of profit for Dacia since Renault took over, after a five-year streak of losses worth more than 360 million euros. The increase in Dacia's profit is almost completely Logan's doing, which accounted for approximately 95% of production last year.
"We increased the number of shifts and the working hours to be able to cope with the very high demand for Logan from the foreign markets and will reach a production capacity of 350,000 units by the beginning of next year," Fourmont adds.
The high production capacity usage rate allowed Dacia to achieve an operating margin of 107 million euros last year (or 6.9% of the turnover), that is one tenth of the value recorded across the entire Renault group.
With a 6.9% operating margin, Dacia is doing better than the recorded average of the Renault group - 2.6% last year, and even better than Renault's goal for 2009, 6%. The production of the Logan model is what made it possible to achieve such results.
"We're seeing a really high demand for exports of the Logan MCV model, which has by far exceeded our expectations. Already, I can say we're talking of a waiting time of a matter of months for a Logan MCV in Western Europe. Even if we wanted to make more, we are limited by the capacity of our suppliers. In other words, they cannot supply the parts as fast as we need them to."
Logan's production integration is 64% at the moment, up from 60% a year ago.
"This is one of the ways to boost our profitability. We constantly try to improve the extent of local integration in such countries as Romania; our goal is to have approximately 80% of acquisitions integrated in low-cost countries," the Dacia official explains.
He estimates a stable automotive market for Romania this year and implicitly sales that can compare to the 2006 level. Production growth will be driven by exports, though.
"We anticipate sales of 100,000-110,000 units for the domestic market, while more than 100,000 cars will go to foreign markets," Fourmont says.
Dacia made over 177,000 Logans last year (according to APIA statistics), almost 80,000 of which were exported.
The most important foreign markets are not only the emerging countries, as Renault officials anticipated four or five years ago, but also the developed markets in Western Europe.

Renault builds an auto design centre in Bucharest

Representatives of the Renault group have stated that this year will see the opening of an auto design centre in Bucharest, at first dedicated to the design of future models that will be created on the Logan platform of production. In its first stage, the centre will hire seven designers. "At the moment, we are looking for an appropriate location for our new design centre, which is expected to have a surface area of around 1,000 square metres. We are considering both the option of buying a building or renting one," stated Patrick LeQuement, vice-president of Renault. By 2009, the centre's employees will increase to 30 people who will design for vehicle models. The personnel will be predominantly recruited from Romania. Renault Design Centre Europe will operate simultaneously with Renault Tehnologie Roumanie (RTR), the engineering centre that the car constructor wants to develop in Titu, near Bucharest. According to company representatives, the core of RTR, which will develop models for all markets on which the carmaker is present, has already been formed and is operating in the North Gate complex, on the Pipera platform.


MyAir expects number of passengers to double

MyAir, one of the leading domestic low-cost airlines expects to see the number of passengers double this year as a result of the increase in the number of flights to Italy and the introduction of flights from Bucharest to Spain and France, says Antonio Iervolino, the MyAir representative in Romania.

"Last year, MyAir flew 220,000 passengers on the Romania-Italy route. Given the rising number of destinations, we expect to see the number of passengers double," said Antonio Iervolino.

If the Italian firm's estimates are correct, MyAir may carry 440,000 passengers this year, a larger number of passengers than the current largest low-cost operator on the market Blue Air, which flew 400,000 passengers last year. The figures posted by the company for the first two months of the year are positive and indicate the airline may reach its target. As a result of the newly introduced routes, Romanian air traffic increased by 70% during the January-February period of this year against the same period for 2006, with the number of passengers seeing a 10% rise in the wake of EU integration.

At present, the company operates a total of 31 flights per week, all to Italian cities, with the number of flights expected to exceed 60 by the end of the year.

As of March 15, the company introduced 3 weekly flights to Bari, and in June will introduce 3 brand new destinations, Barcelona, Paris and Ibiza.

Besides MyAir, the low-costs airlines Blue Air and Wizz Air also operate routes to Barcelona. From Romania only Blue Air operates a route to Paris, while Blue Air, Sky Europe and Wizz Air all operate routes to Italy, according to the information provided on the companies' websites.

The introduction of the new routes has tightened competition between the airlines operating domestically, as they are offering several low price alternatives to the same destinations.

MyAir is also considering introducing an internal flight, but as yet has not made any definite decisions. Nevertheless, MyAir is the only company to have voiced an intention of operating internal flights.

The number of low-cost airline operators is rising domestically. Besides the already present companies, Germanwings is to enter the market on March 25, by introducing a Bucharest-Kohl route, whilst Spanish airline company Click Air will launch flights to and from Romania starting in May.

Low-cost airlines in Romania "now":

Wizzair
Blue Air
Sky Europe
Germanwings
My Air
Click Air

Oiiiiii ... Easyjet and Ryanair ... we're waiting for you too :cheers:

www.zf.ro

Not necessary a good news ...:) :ohno: :) :ohno: :nuts:

Starbucks, in Romania

Starbucks has confirmed that first coffee shop will be inaugurated in Bucharest in the near future

http://www.evz.ro/article.php?artid=297267
http://historyofalcoholanddrugs.typepad.com/alcohol_and_drugs_history/romania/index.html

Bucharest – Total value of real estate projects initiated in 2007 aprox. 4 billion Euro



^^ In english and source - http://www.nineoclock.ro/index.php?page=detalii&categorie=business&id=20070320-509471

Bucharest - Investments in real estate projects estimated to EUR 4 bln
published in issue 3896 page 9 at 2007-03-21

The real estate sector will have an important development in the near future, due to the private investments initiated at the beginning of the year, accounting for EUR 4 bln, Adrian Videanu, General Mayor of the capital declared yesterday during a seminar.

“This is an aspect both satisfying and alarming for the municipality as we must keep the pace and supply the necessary infrastructure for the development of these projects”, Videanu said. The Mayor mentioned that the request for residential spaces accounts for approximately 4.8 million sq m and in the following 3 to 4 years, around 40,000 people will require dwelling spaces as the nationalized houses will be restored. Studies by the City Hall show the level of demand on the real estate office market equal to 1.8 million sq m. He resumed the main projects targeted by the municipality for the following period estimated at EUR 3.8 bln.

Tender for parking spaces

The City Hall will organise a tender for the construction of 17,000 parking spaces, in two packages to avoid a possible monopole. General Mayor Adriean Videanu had initially declared that the bid for the project will be resumed to one package. The municipality has identified 12 locations for the project, estimated to EUR 500 to 600 M. Videanu mentioned other projects targeted by the municipality among which the optical fiber web, the improvement of the infrastructure, the management of the traffic, the filter station for domestic water from Glina, the construction of a multifunctional arena in Tineretului Park and the construction of the national stadium (The contract has already been awarded to Astaldi (Italia) - Max Bogl (Germania); value 170 mill euro. Works to start this spring and to be completed in 2 years )
http://www.zf.ro/articol_116250/asocierea_astaldi_max_bogl__castigatorea_licitatiei_pentru_reconstructia_stadionului_national.html.

OMV filling stations for commercial fleet in Romania

OMV, the majority shareholder in Petrom, is opening a number of fuel filling stations to service commercial carriers’ fleets, to be called OMV EuroTruck, next year. The company has opened its first such units in Austria. “The network will expand into Hungary, Croatia, and Romania in 2008”, according to the OMV information remitted to the media yesterday.

Not necessary a good news ...:) :ohno: :) :ohno: :nuts:

Starbucks, in Romania

Starbucks has confirmed that first coffee shop will be inaugurated in Bucharest in the near future

http://www.evz.ro/article.php?artid=297267
http://historyofalcoholanddrugs.typepad.com/alcohol_and_drugs_history/romania/index.html

Will the stores be corporate owned or franchised. I know Stabucks will enter the Bugarian market through it's Greek franchisee.

^^ Corporate (agency)... through MMD Corporate Public Affairs and Corporate Communications

http://www.mmdcee.com/romania/

Accession cuts down risks in real estate

Romania's accession to the EU has caused the local real estate market to become a safe form of investment, witnessing investment superior to that of more developed states, according to foreign investors who attended the MIPIM real estate fair, held in Cannes every year. MIPIM saw a record number of participants this year, 25,000, with Romania being represented by 14 exhibitors. "We intend to open an office in Romania this year, as it is a continuously expanding market. We are interested in investing in residential projects, which would put out at least 3,000-4,000 homes on the market," says Han P.T.M. Joosten, market research manager within Bouwfunds, the real estate division of the Dutch Rabo Bank. Additionally, London-based fund manager Europe Capital, has announced the launch of a new investment fund, which will allocate over 600 million euros for real estate projects in South-Eastern European countries, including Romania.

www.zf.ro/

Renault Group to invest 266m euros in 2007

The Renault Group will invest some 200 million euros in Automobile Dacia in 2007, on top of which a further 66 million euros will be invested in the future gearbox manufacturing plant, the Romanian automotive producer announced yesterday. "In 2006, Dacia saw investments worth 142 million euros. Another 16 million euros were invested in building the future gearbox manufacturing plant, set to open in 2008. Investments conducted by the Renault Group in Dacia, after its takeover in 1999, amount to a total of 772 million euros," reads a company release, sent to the MEDIAFAX agency. In 2006, Automobile Dacia posted a net profit valued at 100.6 million euros and an operating margin in its turnover of 6.9%, which neared 1.55 billion euros amid strong sales increase influenced by the commercial success of the Logan range. Automobile Dacia's business increased 29% against 2005, while the net profit doubled, stated the company release.

www.zf.ro

KPMG: Real estate market expects strong developers

The accession to the European Union is turning Romania into a target for strong foreign players who conduct investments over long periods. "So far, the developers coming to Romania are contractors who intend to turn a profit as quickly as possible. The entry into the European Union will bring along increasingly more investors who intend to develop long-term projects," stated Victor Kevehazi, senior partner with consulting company KPMG Romania.

Marriott Bucharest, among Europe's top moneymakers

Out of the 32 hotels operated by the Marriott group within continental Europe, the JW Marriott hotel in Bucharest is among the top five contributors to the group's turnover, says Kurt Strohmayer, general manager of the hotel.
"Contrary to the general opinion, the most profitable hotels are not those in Western Europe. The hotels that contribute the most to the group's business, with the exception of the American market, are those in Russia, followed by those in Eastern Europe", Strohmayer says.
Last year, the five-star hotel posted 38.5 million-euro turnover and 16-million euro profit. On the local market, JW Marriott leads the ranking of most profitable hotels, according to financial information provided by Societatea Companiilor Hoteliere Grand, the company managing the hotel. The hotel ended 2006 with a 41% profit margin, topping the ranking of Romanian hotels in terms of turnover.
According to Strohmayer, the hotel's main activity, the renting of rooms, accounts for the bulk of JW Marriott's business, 60%, while the remaining 40% comes from the catering and hospitality segment.
"We serve around 1,750 guests a day (54,000 a month) in our restaurants, bars, coffee shops, as well as during events and banquets. Most of them are businessmen from Bucharest," explains the hotel's general manager. On average, around 80% of the hotel's clients using the catering and hospitality services are Romanians, while the remaining 20% are expats or foreign customers.
"Of course, it remains important to fill the rooms, to ensure the occupancy rate and generated revenues are competitive with the market," adds Strohmayer.
JW Marriott is one of the biggest hotels in the American group located in Europe. The hotel has 402 rooms and suites, six restaurants and coffee shops, 12 event and conference rooms, a business centre and a casino.

www.zf.ro

Fuel loaded into Romania’s Cernavoda 2

The first bundle of nuclear fuel has been loaded into the Cernavoda 2 reactor in Romania, paving the way for commercial operation this summer, AECL has said.

A consortium of AECL and Ansaldo Nuclear of Italy, with owner Societatea Nationala Nuclearelectrica (SNN), is managing the completion of the partial construction of the Cernavoda Unit 2 power plant, the second in a series of CANDU 6 plants that began construction in the early 1980s.

The manual loading of 4,560 fuel bundles, amounting to 100 tonnes of uranium, was completed over a 10-day period. The unit is expected to achieve criticality in April; first synchronisation and connection to the grid is expected shortly thereafter; and the plant scheduled to be in service late summer.
Ron Cullen, AECL’s vice-president of projects said: “While AECL’s prime focus is the completion of Cernavoda Unit 2, some initial work is being reviewed in readiness to participate in the completion of Units 3 and 4 as the Romanian government moves forward with its plans to complete the construction of these units.”
Units 3 and 4 were partially built in the 1980s but work on completion is now scheduled to begin late in 2008 with commissioning in 2013 at an estimated cost of €2.2 billion.

www.neimagazine.com

BAE Systems signs deal with Aerostar Bacau

Romanian company Aerostar Bacau will be the main contractor in the conversion program turning passenger airliners BAE 146QT in freight planes, a press release of the company informs.

Aerostar will also employ secondary contractors for parts of the program, Avioane Craiova being one of the targeted companies..

Aerostar will be in charge with maintenance, assembling large doors for freights and installing the interior of the planes.
Avioane Craiova will fabricate the large doors with vertical opening.

The planes transformed within this contract are operated by large transport companies, like TNT Express, Australian Air Express, Titan Airways (UK) and Western Air Sweden.

www.hotnews.ro

The number of low-cost airline operators is rising domestically. Besides the already present companies, Germanwings is to enter the market on March 25, by introducing a Bucharest-Kohl route, whilst Spanish airline company Click Air will launch flights to and from Romania starting in May.

Low-cost airlines in Romania "now":

Wizzair
Blue Air
Sky Europe
Germanwings
My Air
Click Air

[B]Oiiiiii ... Easyjet and Ryanair ... we're waiting for you too :cheers:

www.zf.ro


^^ Low-cost companies land closer to Bucharest in August

The “Baneasa - Aurel Vlaicu" airport will close its gates starting on May 10, for about to months, in order to rehabilitate the existing infrastructure. The airport, currently handling most low-cost flight companies, prepares to host all low-cost flights, existing as well as announced.
During the two months of repairs, low-cost companies will land their planes on the Otopeni airport, 10 kilometers further from Bucharest than Baneasa.
The low-cost travel market in Romania has currently as players Blue Air, MyAir, Wizz Air, SkyEurope and Germanwings, but expects also several European companies, like EasyJet and Ryanair. :banana:

www.hotnews.ro

Will the exterior/interior of the aurel vlaicu airport be renovated too?

Aker Yards to build $87 million ships

Aker Yards will build for Gulf Offshore two ships for $87 million with a total transport capacity of 4,850 tons. The ships will measure 86.8 meters and will be delivered in the last quarter of 2009 and respectively the second quarter of 2010. Aker Yards has 17 shipyards in Norway, Finland, Germany, France, Ukraine, Romania and Brazil to which will add one in Vietnam.

*********************

EFG invests some EUR 7.16 million to enter Romanian insurance market

Greek financial group EFG Eurobank, the major shareholders of Bancpost invested EUR 7.16 million in EFG Eurolife General Insurances and EFG Eurolife Life Insurances. EFG Eurolife General Insurances has a social capital of EUR 3.35 million and the major shareholder is Greek EFG Eurolife AEGA and EFG Eurolife Life Insurances has a social capital of EUR 3.54 million. EFG Eurobank owns 77.5 percent of Bancpost shares which has a share quota of 4.5 percent

-------------

Source: www.businessromania.ro

^^ I do not think so . Maybe some cosmetic works. It's only shutting for two month ...

Why in the hell would anyone need Starbucks? Turkish coffee is so mutch better.

Something good for turism :

CLASS 1 WORLD POWERBOAT CHAMIONSHIP IN CONSTANTA

http://www.class-1.com/

The International Offshore Team Association (IOTA) has confirmed seven races, two new venues, a 12-boat entry and a raft of new marketing initiatives for the 2007 Class 1 World Powerboat Championship.

IOTA outlined details of the coming season at yesterday's press conference at the Düsseldorf Boat Show to launch this year's championship, where IOTA Board Member and General Manager of the Victory Team Gianfranco Venturelli was joined by Saeed Hareb, President of the newly formed World Professional Powerboating Association (WPPA) and IOTA General Secretary, Marco Sala, who revealed Athens and CONSTANTA, Romania, as the new venues, with Portorose-Piran and Oslo to be confirmed shortly. Arendal, Doha and Dubai complete the line-up with the first race of the season taking place in Greece's capital city on 10 June. IOTA also confirmed it was holding on-going negotiations with three additional venues, with the strong possibility of increasing the calendar to ten races.

In addition to an extended calendar for 2007 that clearly demonstrates the continued and growing interest in the Class 1 World Powerboat Championship, IOTA confirmed a 12-boat entry including the participation of all of last year's teams with Qatar, Victory and Veneta Marina-Duemme Offshore running two boats and Chris Parsonage Racing, Giorgioffshore, Ugland Offshore Racing and Spirit of Norway each running one, with confirmation of two new entries from the USA and Italy.

IOTA also announced three new marketing initiatives and long-term partnerships in Class 1, confirming the established Swiss watch manufacturer, EDOX, as the Official Timing Sponsor, the bespoke and luxury clothing brand, Cliff & Dune as the Official Clothing Supplier and that Nor-Tech, America's leading high-performance boat manufacturer, will supply the championship with a Nor-Tech 3600 Supercat as the Official Pace Boat.

2007 CALENDAR

8-10 June GREECE - Athens
20-22 July NORWAY - Arendal
31 August - 2 September ROMANIA - CONSTANTA
28-30 September RESERVE DATE
8-10 November QATAR - Doha
15-17 November QATAR - Doha
29 November- 2 December U.A.E. - Dubai
6-8 December U.A.E. - Dubai

The following venues to be finalised:
29 June-1 July SLOVENIA - Portorose-Piran (tbc)
10-12 August NORWAY - Oslo (tbc)
(28-30 September RESERVE DATE
France, Villefranche or Italy, Syracuse or Spain, Gijon)

-----------------

More informations at : http://www.class-1.com/pop_news.asp?idn=344

:cheers2:

Romania: Traktionssysteme to invest in a production facility in Lugoj

Austrian manufacturer of train and trams engines Traktionssysteme is interested in investing even EUR 10m in a production facility in Lugoj.
Representatives of the municipality had a meeting with a delegation including officials of Traktionssysteme and Donau Consult, the Austrian business consultancy company in Romania.
All the parties expressed their interest in building a trains and trams engines plant in Lugoj - said mayor Martinescu.
The investment will be finished in 2008.

Schieffer to expand production capacity

Schieffer Romania, a division of the Austrian automotive components producer, estimates a 50% increase in its number of employees in 2007, to 100 people, and plans to invest in expanding its production capacities. "We want to expand our capacities and to increase production this year. Last year we invested 200,000 euros in acquiring equipment for plastic injection and high pressure hoses, whilst the number of employees increased three times," stated Mihael Curescu, Schieffer's deputy manager. He added that the company's first employees, about 30 in number, were recruited from the former plastics division of the Honeywell producer, with the remainder needing training and experience exchanges with the parent company.

Immoeast buys 25% in Adama for 60 million euros

Austrian investment fund Immoeast, the most active player on the domestic real estate market, has reached a partnership with real estate developer Adama, whereby it will contribute 60 million euros to the share capital of this company.
Adama's portfolio includes more than 8,000 apartments and 50,000 square metres of office and retail space in various stages of planning and execution.
"The deal, which values Adama's current portfolio and operating platform at more than 180 million euros, gives Immoeast a 25% stake in the company," reveals information Adama representatives provided to ZF.
Most of the money comes in form of a capital increase in view of new investments, while a small share comes from the existing shareholders. Adama's current shareholders include New York-based firm Tiger Global Management, private American investment trust RomRe (owned by the Jesselson family) and the company's management and founding shareholders, according to the same sources.
To date, Adama has invested in development projects worth over 600 million euros in total investment size, concentrated in Bucharest and Ploiesti, but also in other cities such as Bacau, Brasov and Iasi.
Other than Romania, projects in neighbouring Ukraine, Moldova and Turkey are already in the pipeline.
Austrian funds and Immoeast in particular have turned out to be the most active investors on the real estate market in Romania. This way, Romania has become the country where Immoeast makes the largest share of its investments, more than 1.4 billion euros, or 19.5% of the total value of investments.
The total lettable area of the projects in Romania exceeds 2 million square metres, or 26.4% of the entire portfolio of the company.
The company now totals 39 properties in Romania, compared with only 10 properties at the end of April 2006.
Immoeast has announced the signing of partnerships with several developers for shopping centres in Brasov, Targu Mures, Sibiu and Glina, near Bucharest.
The Austrians were also very active early this year, when they bought several large projects, including Polus Center Constanta (185 million euros), S-Park (more than 100 million euros) and Victoria Park (60 million euros).
On the other hand, the company intends to develop a network of smaller shopping centres, named STOP.SHOP, in the new European Union member states, as well as on other markets such as Ukraine.
The projects should consist of approximately 100 malls ranging from 5,000 to 15,000 square metres, in cities with a population of 30,000 to 150,000 people.

Romania should remain the main target of the company's investments over the next few years, considering that Immoeast has budgeted investments in developments and acquisitions worth 636 million euros in this country, for the January 2008-December 2010 period.

www.zf.ro

Romania, Serbia: Rehabilitation of the cross-border railway line

Cheers Serbia ! :cheers:


Delegations of Serbian and Romanian railway representatives met in Reşiţa to discuss the rehabilitation of Anina - Oraviţa - Iam - Jasenovo - Biserica Albă – Baziaş railway line.
Serbian delegation included: Milutin Minic from the Ministry of Capital Investments, Nenad Kecman, Milan Vucinic and Radovan Lekic from Serbian Railways.
The Romanian side was represented, among others, by: Alexandru Potocean and Alexandru Silvăşan - CFR Regional Timişoara, Constantin Manea, assistant general manager of National Company of Railways CFR SA.
At the opening speech, the president of District Council dr. Iosif Secăşan, wanted to highlight the importance and the opportunity of the projects submitted to common debates: „...I am convinced that restructuring Oraviţa - Jasenovo - Biserica Albă - Baziaş railway does not represent a revival of history, but a promise made to the future. The projects we have been developing together since a long time are presently beneficiating of a new frame through the opportunity of using the funds allocated by EU for cross-border cooperation”.
Being few steps away to being closed because of odd financial reasons invoked by the management of the railways, the oldest Romanian railway section will be saved, its restructuring being, as president Secăşan said, a promise made to the future.

Confirmed - Nokia to build €200 million plant in Romania :cheers:
26 Mar 2007, www.bbj.hu

The world's top mobile phone maker plans to build a €200 million plant in Romania, a government official said Friday.
„We will sign a memorandum with Nokia Group next week. It is a €200 million investment,” Marius Nicoara, an official in the Transylvanian city of Cluj, told Reuters. A spokeswoman for the Finnish-based company in Helsinki said no agreements have been signed, but pointed out that a 30% increase last year in the manufacture of Nokia phones had placed strains on production capacity. The Romanian government will co-finance the investment by setting up infrastructure worth €33 million, including electricity, running water and sewerage systems.
The plant will employ 15,000 people. Foreign investors are eager to set up manufacturing facilities in Romania, hoping to benefit from low taxes, and a cheap and skilled workforce. Romania expects foreign direct investments to reach €7 billion this year, following a record €9.1 billion in 2006. However, the head of Romanian Agency for Foreign Investments told in an interview last week it expects greenfield investments to hit successive record highs in coming years. (b92.net)

http://www.reuters.com/article/technology-media-telco-SP/idUSBUC00065020070323

Zara licensee to expand network by 42 stores

Azadea Group, the company that introduced the Zara, Pull and Bear and Sunglass Hut brands onto the domestic market, is to expand its current 3-store network to another 42 locations by mid next year.
"The retail is largely dependent on the development of retail space. We would have expanded long ago, had we had room to do so. However, we had to wait for the real estate sector to develop first," says Marian Radu, Azadea Group's country manager for Romania.
According to its representatives, the locations the company are expected to expand to include Trigranit Polus City Center Cluj, the shopping complex in Constanta and Baneasa Shopping City, where it has already rented 6,000 square metres.

Porsche plans to sell 540 Audi Q7 units

Porsche Romania, Romanian importer of Porsche, Skoda, Audi, Seat and Volkswagen car brands, has set a 540-unit target for the SUV Q7 for this year, up 54% against 2006. Last year, the company sold 324 Audi Q7 units in total for the whole year, 69 of which were sold within the first two months. However, the actual number of Audi Q7 units registered for 2006 in Romania reached almost 500, as some Audi buyers chose to acquire new or used cars from abroad. In 2006, 57,750 Audi Q7 units were sold worldwide. Prices for this model vary depending on the options and engine capacity, ranging from 46,900 euros to 60,400 euros, excluding tax. According to statistics from the Association of Automotive Manufacturers and Importers, in the first two months of this year, the Audi brand witnessed 55% higher sales than in the same time last year, reaching a total of 319 units sold.


First Starbucks' location: Plaza Romania

Starbucks, the biggest global coffee chain has chosen as its first location in Romania, the Plaza Romania shopping centre on Timisoara Boulevard, Bucharest. Plaza Romania representatives confirmed the information, but did not supply any further details. According to sources on the market, Starbucks intends to open at least two further coffee shops this year. One of them will be located in the Bucuresti Mall, and the other will be opened within the B`neasa Business Center. The value of initial investments for a Starbucks coffee shop stands at around 100,000 euros. The launch date is still unknown, but the company has already chosen public relations consultant Mmd Corporate, Public Affairs & Public Relations Consultants, with whom they will work with in Romania.

Tariceanu wants to cut labour taxation

The social security contributions paid by employees could be cut by up to 6% next year, Prime Minister Calin Popescu Tariceanu said yesterday.
"We decided a priority for 2008 is an up to 6% cut of the social security contribution each employee has to pay," the Prime Minister stated. He added it was best for the money to stay with "active citizens" than be collected for the public budget.
"More money at home for the active citizens means both an improvement in the standards of living and a premise for economic development on a much healthier basis than if this money stayed with the state.
WWW.ZF.RO/

Romania builds 50 MN euros ship for Aker Yards

Aker Yards announced on Tuesday that a 400 million Norwegian crowns (some 49.28 million euros) was signed with the GDV Shipping company. Within the contract, Aker Yards will build a ship designed to carry provisions for sea platforms. The Romanian company will only provide the careen, all equipment being provided by the Norwegian partner.
The ship is scheduled for launching in the last quarter of 2009.
According to another article in the agreement, the Romanian shipyard may also provide a similar ship in 2010.
Investor Aker Yards currently holds 17 shipyards in Brazil, Finland, France, Romania, Germany, Norway and Ukraine


... and sorry to Bulgarian neighbours ...


Unilever closes Bulgaria capacity, move everything to Romania

The Unilever company will relocate the production of its Dobrich factory in Bulgaria to its industrial platform in Ploiesti, a company press release says. The decision is part of an Unilever plan to concentrate its production activities in strategic places, capable to support growth on the long term.
The production in Dobrich will thus be move to the Ploiesti, Romania platform where the company produces milk-based product brands such as Knorr, Rama and Delma.
Alexandra Gatej, head of Unilever for Central and Southern Europe, said the relocation would not influence long-term investments in the Bulgarian-made Kaliakra product.
The closure of the Bulgarian plant will affect 70 employees and 30 collaborators.
Unilever South Central Europe is a Bucharest-based regional company coordinating Unilever activities in Romania, Bulgaria, Serbia, Montenegro, Albania, Macedonia and the Moldovan Republic.

The last news had an extremely negative impact in Bulgaria. I see it just as part of business. Policolor (a Romanian company) closed its production facilities in our nothern neighbour and moved them to Ruse. It's just a stadard practice.

30m-euro investment in clothing outlet

A shopping centre, located 21 kilometres away from the capital city on the Bucharest-Pitesti highway, is expected to be built by the end of the year, and will include over 50 stores, as well as the first multi-brand outlet. The market of shopping centres has seen fast-paced growth in the last few years. The project named Escape Outlet Shopping Center is the first project developed on the local market by Greek-owned company American Outlet Overseas. The shopping centre will consist of 55 to 75 stores, depending on the amount of space requested by the tenants and will entail a total investment of around 30 million euros. "This outlet will be the same as other stores in Europe that are outside the city. We don't want to compare ourselves with the current malls in Bucharest, so we will focus on clothing retail and not hypermarkets," says George Sigalas, chairman of the company. Such outlets sell excess products coming from factories, or products that were not sold in regular stores, and are often grouped together in multi-brand outlets in other European cities.

Hypermarkets expand to Eastern Bucharest

Hypermarket networks Carrefour and Real are both targeting the building of new stores in Eastern Bucharest, on Theodor Pallady Boulevard, according to officials from the Capital's Town Hall. The commercial, real estate projects and the hotels, expected to be completed, on Theodor Pallady Boulevard, at the exit to Constanta, in a year and a half, total 113 million euros, stated Stefan Dumitrascu, chief architect at the 3rd sector's mayor office. According to Dumitrascu, among the most important investments are those in the Carrefour and Real hypermarkets, a Mega Image supermarket and in two eight-storey blocks of flats. The Real hypermarket will be situated on a seven-hectare plot that used to belong to the Policolor company, while the planned Carrefour will be located on an over five-hectare plot formerly owned by Sicomed, according to sources from the retail market, quoted by Mediafax. French retailer Carrefour already operates four stores in Bucharest, and by the middle of the year will reopen the smaller hypermarket taken over from Univers'All, in the city centre.

Phoenicia invests 8m euros in new hotel
http://img142.imageshack.us/img142/5659/12zwg3.jpg (http://imageshack.us)

The hospitality company Perla Majestic Group, controlled by the Spring Time Holding and operator of the four-star hotel Phoenicia, located in the north of Capital, will invest 8 million euros in building a new hotel near Otopeni airport in Bucharest. "The designs have been made, negotiations have been completed and we have all the necessary permits. The deadline for the construction is March 1, 2008 , but we intend to complete it by the end of the year," Mohamad Mourad, president of Perla Majestic Group, told ZF. According to the group's president, the four-star hotel will provide accommodation for around 400 people, with 200 rooms, and is most likely to be named the Phoenicia Hotel (photo).

"Given its positioning and its size, we will be addressing a business clientele and busy commuters who arrive at the Henri Coanda airport," stated Mourad. Perla Majestic Group will collaborate with construction firm Triumf Construct, also a part of Spring Time Holding, on completing the project. The company's portfolio also includes four seaside hotels (Majestic Mamaia, Majestic Jupiter, Perla and Majestic Olimp), with three and four-star ratings, as well as three hotels with holiday apartments also located on the coast. Investments in the group's most recent hotel, the four-star Phoenicia Grand Hotel, were completed in October 2005. The hotel has a total of 348 rooms and posted 1.5 million-euro profit in its first year of functioning, with turnover standing at 8 million euros. The four-star hotel market in Bucharest also includes Golden Tulip, Novotel, Ramada Majestic, Lido and Sofitel.

www.zf.ro

Coldwell Banker Plans 20 Office Openings in Romania

29-03-07, 10:25, (Property Xpress) - Coldwell Banker Romania, that has recently entered the domestic real estate market, has the ambition to open 20 offices in the country by 2010.
www.propertyxpress.com

Kaufland invests in new HQ

Discount hypermarket network Kaufland is investing 10 million euros in building new, company-owned headquarters. The building is located close to the Kaufland store in the Floreasca district (Bucharest) and will be operational in around three months' time. Kaufland has recently reached total investments worth nearly 300 million euros on the Romanian market and has a 22-store network, the latest store was opened yesterday in Iasi. The German firm's plans include a further 10 openings this year, through investments worth an average of 7 million euros for each store, with sales areas covering 3,000 to 5,000 square metres. Other projects will be completed in Cluj-Napoca and Brasov very shortly, according to the company. The store network will expand to 50 stores in the next three years. Kaufland, a company held by German group Lidl&Schwarz, entered the local market in 2005 and, in addition to the store network, also holds a central warehouse in Ploiesti.

www.zf.ro

After RAV Antivirus another romanian antivirus is quite a sensation on the international market

BitDefender Antivirus (Romania) - available in Canada

FORT LAUDERDALE, Fla. – BitDefender®, an award-winning provider of antivirus software and data security solutions, announced today that its BitDefender Internet Security v10 and BitDefender Antivirus v10 software solutions are available to the public immediately in all STAPLES® Business Depot™ / BUREAU EN GROS™ retail stores across Canada. STAPLES® Business Depot™ / BUREAU EN GROS™ is one of Canada’s leading retailers and business resellers of technology products and services.

.... http://www.monitortoday.com/index.php?page=~~newsitems_111418 ...

About BitDefender®:

BitDefender is a leading global provider of security solutions that satisfy the protection requirements of today's computing environment. The company offers one of the industry's fastest and most effective lines of security software, setting new standards for threat prevention, timely detection and mitigation. BitDefender delivers products and services to over 41 million home and corporate users in more than 180 countries. BitDefender has offices in the United States, the United Kingdom, Germany, Spain and Romania. Further information about BitDefender can be obtained by visiting: http://www.bitdefender.com.

KBC Lease completes acquisition of majority stake in Romstal Leasing in Romania

Following the announcement on 15 December 2006, KBC Lease today closed the deal to acquire 99.34% of Romstal Leasing, the largest independent leasing company in Romania.
KBC Lease also acquired full ownership of INK Insurance Broker, the seventh largest insurance broker in Romania. As planned, it paid €70 million in the deal. With this move, KBC has taken another important step towards achieving its strategy of expansion in Central and Eastern Europe, its other home market. Romstal Leasing is the largest independent leasing company in Romania. At the end of 2006, it held a 4.20% share of the Romanian leasing market and was ranked thirteenth. The bulk of its financing activity (43.30%) relates to car leasing, but it also leases delivery vans, lorries, machinery and equipment and real estate. Romstal Leasing boasts a high level of profitability, with a ROE of 29.50% in 2006 and net profit growth of 22.30% in the period 2005-2006. During this period, its leasing portfolio also expanded by 82.90%. The company has experienced enormous growth in the last few years and has opened new branches throughout Romania.
It now has a network of 20 branches in almost all of the country’s major cities and employs 91 people. To take advantage of the rapidly growing market, the company plans to expand its network to 35 branches by 2008. On 21 March 2007, the company was licensed as a non-financial institution by the National Bank of Romania. INK Insurance Broker is the seventh largest insurance broker in Romania (up from tenth in 2004). Established in 2003, INK Insurance is a fast-growing sister company of Romstal Leasing, providing products and services to Romstal Leasing and other companies. It has a current workforce of 25 FTEs and enjoys a high level of profitability, with premium income going up by 56.30% and earnings increasing by 51.90% in the period 2005-2006.
Over the past decade, KBC has built up a strong presence in Poland, Czech Republic, Slovakia, Hungary and Slovenia. KBC’s long-term strategic plans include continuing to explore market opportunities in future new EU Member States and beyond. In Central and Eastern Europe, KBC Lease is present via ČSOB Leasing (Czech Republic and Slovakia), K&H Leasing Group (Hungary) and Kredyt Lease (Poland). KBC Lease occupies leading positions on the leasing market in the Czech Republic (No. 1 with a 15% market share), in Slovakia (No. 1 with a 17% market share), in Hungary (No. 6 with an 8% market share) and in Poland (less than a 1% market share). (boursier.com)


5 countries to sign declaration on pan-European oil pipeline construction

Slovenia and other four countries would sign a ministerial declaration on the construction of a pan-European oil pipeline connecting Romania's Constanta and Italy's Trieste, said reports reaching Belgrade from Slovenia on Thursday.
The Slovenian government authorized on Thursday its Economy Minister Andrej Vizjak to sign the declaration, which would be signed in the Croatian capital Zagreb on April by ministers from Slovenia, Croatia, Serbia, Romania and Italy and EU Energy Commissioner Andris Piebalgs, the Slovenian national news agency STA reported. The declaration will be the first document to enable work on developing the pan-European oil pipeline construction project after three years of negotiations between the governments of five countries.
The project of the pan-European oil pipeline is still in its initial stage, with the involved countries deciding to express their positive political will in order to attract investors, said the reports. The pipeline, which is expected to be completed after 2011, is to enable direct transport of oil from the Black Sea and the Caspian Basin to refineries in Italy's Trieste and Genoa. The ministerial declaration was drafted by the European Commission after the commission as well as Slovenia rejected in 2006 the signing of a legally binding memorandum on support for the project which ran contrary to EU law. (english.people.com.cn)


http://www.businessromania.com/index.php?x=readnews&sid=9628

^^ ^^

INVESTMENTS
Carrefour to open five hypermarkets in Romania in 2007

Retail company Carrefour Romania will open four hypermarkets this year and five units next year expanding its network to 16 stores. The company will open two units in Iasi, one in Cluj and the other in Bucharest. The retailer announced for 2008 the opening of hypermarkets in Pitesti, Suceava, Oradea, Arad and Bucharest. The store in Oradea will be developed in partnership with Omilos while the one in Arad will be developed in partnership with Red Project One. The medium investment in a Carrefour store reaches EUR 20 million. Carrefour network includes seven hypermarkets which registered last year sales of EUR 608.9 million, with 39 percent increase on 2005. The total value of the investments in Romania reached some EUR 220 million.(30.03.2007)

INVESTMENTS
Kaufland to open three stores in Iasi by year-end (30.03.2007)

INVESTMENTS
Piraeus Bank purchases EUR 5 million office building in Bucharest (30.03.2007)

FINANCE
Heineken sees 24 percent increase in turnover in 2006 (30.03.2007)

FINANCE
Alumil sees 75.5 percent increase in net profit (30.03.2007)

FINANCE
Raiffeisen Bank opens four new agencies in Cluj (30.03.2007)

FINANCE
Anchor purchases 1 million sqm plot for real estate projects (30.03.2007)

INVESTMENTS
ATS invests EUR 11.5 million in sales center in Baneasa (30.03.2007)

INVESTMENTS
Rotercom invests EUR 3 million in factory in Targu Neamt (30.03.2007)

Rompetrol brand tested out in France

The first Rompetrol-branded filling station in France will be located on a highway, with future targets for development being underserved areas and areas generally avoided by hypermarkets.

However, the petroleum company's expansion largely depends on French consumers' initial reaction to the Romanian brand.

"For now, we are just testing out the brand in France. We have to see how the French consumer goes into a Rompetrol filling station. We can only make a bet, and nothing more than that. If we can mentally go beyond the fact that we're a Romanian brand, we'll achieve success in penetrating the market," says Eric Kish, marketing and retail vice-president with the Rompetrol group.

... http://www.zf.ro/articol_118706/rompetrol_brand_tested_out_in_france.html



Fadesa invests EUR 1 bln. into a real estate project in the N. Bucharest

The Spanish company Fadesa Immobiliaria will invest around EUR 1 bln. for the construction of a complex of lodging spaces, shopping areas and offices, on a land of 70 hectares, in the village Stefanestii de Jos, located in the North of Bucharest, according to Mediafax, which cites sources from the real estate market. Currently, the developer is discussing with several architecture cabinets in relation to the final project, the works being expected to start this autumn, according to the cited source. In February, Fadesa informed that they were intending to invest EUR 1.05 bln. on Romania in five residential projects in Bucharest and in Bacau.

Property of the month: 99 Blvd Dacia
Pre-war phone company home sees modern office makeover

BLVD DACIA Currently undergoing renovation, this 1930s old school building situated in the Embassy heartland of Blvd Dacia is up for sale for ten million Euro from real estate agency Alliance Properties.
Dating from 1929 to 1930, the building was first the headquarters of the Telecommunication and Post Office Administration and the Romanian Society of Telephones, which became the national telephone company in 1931. After 1932, the surrounding area between Strada Alecu Russo and Strada Aurel Vlaicu was turned into a residential area.
The facade is decorated with floral and vine motifs in a Brancovenesque style which are situated underneath the cornices. Even though the building is not listed among the historical monuments in Bucharest, it has the personality and grace which will resist any future attempts of a drastic renovation. It perfectly merges with the architectural environment of the area and boasts a well-proportioned tower at its corner that shines out among the contemporary developments.
The property has a total built area of 668 sqm, a volume of 18,000 sqm and a height of 22.6 metres, two underground levels, ground floor, three upper floors and an attic.
The interiors do not have any decorations and are undergoing a complete renovation to create a modern office-style environment. The new building will have six elevators and new plumbing, sewerage and electric systems.
This could become the prestigious headquarters for a bank, public institution, university or museum.
For more information call
Cornel Ionescu at Alliance Properties on 0722 101 102

Reaching saturation point. How does the Bulgarian market compare to Romania?

While Bulgaria’s residential market could soon become saturated, Romania’s remains the more expensive option.Tahi Ali, managing director at Bulgaria Revealed and Romania Revealed property agencies, believes some areas south of the Danube are overdeveloped.
“Sunny Beach on the Bulgarian Black Sea coast has proven to be catastrophic for some investors who bought recently,” he says. “They are struggling to achieve decent rental yields as there is an oversupply.”
According to real estate developers Willbrook Management, the areas with the best investment opportunities in the two countries are the coast and the capital, but in Romania costs are higher. “You can buy a 75 sqm, two room apartment in Varna for 45,000 Euro, where in Constanta the same type of apartment will cost 58,000 Euro,” says managing director Daiana Voicu.
“For buying, the real estate market in Bulgaria is more attractive, but profits in Romania are superior compared to other central and eastern European countries.”
Like in Romania, the Bulgarian office market is expanding. The biggest office transaction in Bulgaria was the purchase of Sofia Business Park for 180 million Euro from German company Lindner.
This is similar to Romania, where Austrian investment fund Immoeast purchased shopping complex Polus Center in Cluj-Napoca for 210 million Euro from Trigranit. Unlike Romanian companies which decide to rent office space, Bulgarians prefer to buy.
“The offer for office spaces for sale in Romania is still low and is easily and rapidly absorbed,” says Silviana Badea, broker at Colliers Romania.
Retail is on an upswing in Bulgaria, with four shopping malls opened in 2006, three of which were in Sofia.
Names present in Romania such as Marks & Spencer, Carrefour, Ikea and Zara are looking to Bulgaria, according to Landmark Property Bulgaria.
A new master plan was approved for Sofia that came into force at the end of January to set clear rules in the height, types and density and zoning of buildings.
“In the past, there have been some loopholes in the legislation that have provided opportunities for witty developers to build higher buildings than the standard or even building in the parks and green areas,” says Tanya Kosseva-Boshova, executive director at Landmark Property Bulgaria. “The master plan is not perfect, but the administration is willing to listen to the business to make improvements.”
Unlike Bucharest, which is moving towards the north, developers are looking for land all around Sofia.
The proximity of Vitosha mountain resorts, only 30 minutes away by car, made developers build residential projects on the outskirts of the capital.
The average price per sqm for a property in Sofia starts from 1,200 Euro to 1,800 Euro at the higher end and between 650 and 850 Euro at the lower end. 70 per cent are bought off-plan by foreigners from UK, Ireland and Scandinavia looking for speculations, ski and spa resorts. In Bucharest luxury prices are similar, with middle class residences trading at between 1,000 and 1,500 Euro and the top end at 1,850 Euro per sqm plus VAT, according to the residential department of Colliers Romania.
Current legislation allows foreigners to buy freely in Bulgaria and take out mortgages, but land purchase is conditioned by establishing a company in the country. While, according to Radu Rafirou, tax adviser at Norr Stiefenhofer Lutz, Romanian resident EU citizens are entitled to acquire land in Romania starting with the date of Romania’s accession to the EU. Romanian residents are deemed to be those citizens who “have the right to reside in Romania.”
EU citizens who do not qualify as Romanian residents are entitled to acquire land in Romania only after 2012.


Japanese minimalism descends on Snagov

SNAGOV Falcon Corporation, the European subsidiary of Falcon Group LLC from Miami, is investing four million Euro in four luxury villas in the north-eastern side of Snagov area.
The Arigato residential compound will consist of four Japanese-style villas raised on 1,000 square metres of land, each comprising 350 square metres terraces, fire place on both levels, leveled parking space, sauna, pool and jacuzzi incorporated in the semi covered terrace.
The construction works will start at the beginning of May and will be completed by the middle of December.

Classic capital market due for revamp

PIATA AMZEI Central fruit and vegetable market Piata Amzei will undergo a massive modernisation, with Sector 1 City Hall awarding the design contract to architect Andrei Fenyo from Punct Concept.
The winning project, ‘Piata Amzei in six markets’ will include the construction of a new food market hall, flower market and an underground parking of 200 spaces that will require initial costs of 500,000 Euro. “We spotted six different areas with different characteristics that will create six different environments,” said Fenyo. The Ion Creanga Theatre for children will remain in place at the centre of the project
A feasibility study is ongoing to determine the final plan and costs. When this is released, Sector 1 authorities will put out a tender for a building contractor. This should happen by the Summer and work could be completed in one year – targeted for 2008.

Five-star holiday hotel blitz due from football club owner

MOUNTAINS, SEA AND CAPITAL Romconstruct Tourism & Hotel, a company 50 per cent owned by Vasile Turcu, a shareholder in the Dinamo football club, will invest 15 million Euro in the construction of five star villas and hotels in Eforie Sud, Predeal, Poiana Brasov and Bucharest. The project will offer a service where businesspeople can hire out the entire complex, Turcu told The Diplomat. The first two villas, totalling 70 rooms, are being built in Eforie Sud seaside resort and are scheduled for completion in 2008. Turcu said the next stage will include the development of two hotels in skiing locations Predeal and Poiana Brasov and a 60 room five-star hotel in Bucharest.


Property: Bucharest
BLVD 1 DECEMBRIE 1918 A new logistic park is available to buy for 14 million Euro or to rent in eastern Bucharest, inside Faur platform on Blvd 1 Decembrie 1918 from Regatta. East Logistic Center is a mixed Romanian-Greek development covering 27,700 sqm. The project will deliver ten halls totaling 16,700 sqm with 240 sqm of office spaces for each hall.
CERNICA Greek developer Panhol will invest 60 million Euro in a housing complex and logistics park. According to vice president Ioannis Panagiotidis the 30 million Euro residential complex will be developed on a 44,000 sqm area in Cernica with 430 apartments and 40 villas and the first units will be ready next year. The 30 million Euro logistic park will start construction this year near the south arc of the ring road.
PIATA UNIRII Brancovenesque 19th century city inn Hanul lui Manuc has been returned to heirs of its former owner after a ten year trial. The court case was between Prince Serban Cantacuzino, a descendent of the previous owners, the Baicoianu family, and the company administrating the inn, Trocadero, majority owned by the Privatisation Authority. Valued at 15 million Euro, the inn was nationalised by the Communist state in 1949. The historic building was built in 1808 by trader and politician Manuc Bei.
SOS DOMNESTI Romanian developer Kone is investing 32 million Euro in a residential project on Sos Domnesti scheduled for completion in December 2008. ‘Curtea Domneasca’ will stretch over a 120,000 sqm plot of land and will deliver 110 Brancovenesque villas.
STR ARON COTRUS Developer Persepolis is building a condominium estimated at 50 million Euro on Str Aron Cotrus, near Parcul Herestrau, delivering 124 apartments and 150 underground parking spaces. The project is 95 per cent complete and consists of three blocks of flats of six floors. Persepolis has a total area of 33,000 sqm and includes apartments from two to five rooms and penthouses.

Property: Romania

DEALU LOMB, CLUJ COUNTY Developer Impact is investing 415 million Euro in a 203 hectares residential project in Dealu Lomb, Cluj county. The project will deliver 500 houses, of which 75 will be donated to the City Hall for subsidised housing for young families. Work is estimated to begin this Autumn.

CLUJ-NAPOCA Austrian investment fund Immoeast has bought shopping centre ‘Polus Center Cluj’ from Trigranit Holding in a deal worth 210 million Euro. Immoeast will purchase the centre in stages with the respect to the progress of the building and its level of occupancy. Polus Center Cluj has signed rental agreements for 55 per cent of the property and pre-agreements for an additional 20 per cent of the lettable space. Construction for the shopping centre is scheduled for completion in November 2007.

ARAD Businessman George Paunescu, who co-owns the Intercontinental Hotel and TV station B1TV, is investing 500 million Euro in a residential complex comprising 3,000 apartments in Arad, according to Mediafax. The project will be built on the land of the former furniture factory IMAR, which will be relocated outside the city. The 25 hectare land near the centre of Arad is owned by the businessman and is estimated to be worth 45 million Euro, said the news agency. The project is currently in the process of obtaining planning permission.

TIMISOARA Property developer Plaza Centers has acquired 31,800 sqm of land near Timisoara where it will develop a 60 million Euro project comprising a shopping centre of 30,000 sqm of gross lettable area and 20,000 sqm of mixed retail, office and residential space. Plaza Centers has also announced it will enter into a private-public-partnership to develop the mixed-interest ‘Dambovita’ project on the site of the half-built Communist Casa Radio. This project is opposite Eroilor Metro in Bucharest on the banks of the Dambovita and is worth around 750 million Euro.

http://www.thediplomat.ro/real_estate_0407.php

Foreign Investors in Romania - news :cheers:

GERMANY
•Retailer sets up shop in Sibiu
Kaufland opened its 20th Romanian store in Sibiu after an investment of seven million Euro. With an area of 6,612 sqm, the store also has parking space for 332. So far Kaufland has created almost 4,500 jobs in Romania and invested about 287 million Euro.
•Selgros ups local investment
Selgros Cash & Carry has invested 15 million Euro in its newest store in Iasi, bringing the total number of units operating locally to 15. A similar store is planned for Galati this year and will also cost 15 million Euro to build.
•More spare parts for Sibiu
Spare part maker Ifert Plastics Technologies will invest three million Euro in a production unit in Sibiu for plastic-made technical components and parts for aluminium-treated car lights. The factory is likely to be built near Sibiu, on a 5,000 sqm plot.
•Engine belt maker steps in
Optibelt, which produces transmission systems for the car industry and construction equipment, will invest 15 million Euro in a factory near Baia Mare to produce engine belts and electronics.
•Steels pipes for cars in SlatinaProducer of chassis, car evacuation systems and engine components Benteler has invested 2.8 million Euro in a 5,000 sqm steel pipe factory in Slatina, Olt county.

AUSTRIA
•Real estate firm makes giant leap
Regional real estate investment fund Immoeast has acquired 25 per cent of real estate developer Adama for 60 million Euro. Officials said 23.5 per cent of the investment comes in the form of a capital increase, while a further 1.5 per cent was acquired from existing shareholders. Other shareholders of Adama include New York-based investment firm Tiger Global Management, private American investment trust RomRe, owned by the Jesselson family, and the company’s management and founding shareholders.

CYPRUS
•Bank player starts-up
After eight years of presence on the Romania market, where it set up a rep office in 1999, the Bank of Cyprus launched commercial operations and its own leasing company last month. Plans by Bank of Cyprus for 2007 include opening seven branches, two business centres and a corporate service centre in Bucharest, said Board of Administration president Eleftherios Ioannou.

FRANCE
•Retailer heads for city centre
Carrefour will invest two million Euro in a city centre location, after taking over the Univers’All shop in Piata Unirii. The shop is Carrefour’s first supermarket size in Romania, with 3,600 sqm displayed on two floors. The chain will also rent commercial space in the Colosseum shopping mall in Chitila, north-west of Bucharest, in 2009.
•Third plant for malt producer
Malt producer Soufflet will invest 46 million Euro to build its third factory in Romania at Buzau according to Mediafax. The factory will be located in the industrial area of Buzau and will start its activity in 2008. The group has factories in Pitesti and Buzau.

GREAT BRITAIN
•DIY store aims for west
DIY retailer Brithouse is targeting the Banat and Transylvanian regions with an aim to open at least 15 shops by 2012. The retailer is investing two million Euro in its first shop in Romania on 11 Calea Buziasului in Timisoara. This will have a total area of 5,500 sqm of which 900 sqm will be a two level showroom. Brithouse estimates a turnover of five million Euro by the end of 2007 and targets 100 million Euro, a market share of eight per cent and 1,200 employees by 2012.

NETHERLANDS
•Eye on entertainment supplies
Paradigma Group, a Romanian-Dutch joint venture in entertainment technology has invested 1.2 million Euro in a warehouse to house its equipment. Fred Heuves, executive director, Ampco-Flashlight Holding within Paradigma, says the firm intends to invest a further 0.5 million Euro this year. The venture, between Dutch Ampco Flashlight Holding and AEI Broadcast Concept, sells audio, lighting and video equipment and rents out the same, as well as staging.
•Factory makers set up production
Factory construction firm Remco Romania will set up a production facility in Sibiu by August this year. The one million Euro investment, which will employ 15 people, will have an annual construction of 5,000 tonnes of steel parts for its kit-style constructions.

SPAIN
•Another car parts firm Sibiu-bound
Automotive components manufacturer Caucho Metal Productos (CMP) will invest three million Euro in its Sibiu county factory to double the production capacity. The company currently holds production facilities covering a 2,000 sqm and employs over 100 and has invested approximately 6.5 million Euro.

SWITZERLAND
•Kitchen systems need more space
Kitchen systems retailer Franke Romania has pledged almost one million Euro investments to build a new storage depot on its location on the outskirts on Bucharest. General manager Valeriu Cobaschi told The Diplomat the new storage capacity is scheduled for completion at the end of July and will cover 1,700 square meters.

ESTONIA
•Baltics join real estate frenzy
Arco Real Estate Consulting has started up in Romania with a target investment of five million Euro by 2008 in offices in the top ten cities of Romania and the six sectors of Bucharest. The company is also looking to employ 300 real estate consultants by 2008. In Romania Arco Real Estate Consulting will offer consultancy and brokerage and, in the future, a property valuation department. In Estonia and Latvia, its parent company Arco Vara also work as developers and constructors.

http://www.thediplomat.ro/for_invest_0407.php

Very interesting article comparing BG and RO real estate. Thanks Nebunul.

Real estate investors from Poland move to Bucharest :banana:

Real estate funds present in Poland are preparing to enter the local market in search of higher yields, which in Romania are about 1.5% higher and are complemented by an unsaturated market. "Investment funds present in Poland for the last 5-7 years could give up the portfolios they hold there, considering among other things the yields that have fallen in the last few years. They could take their liquidities and move their operations eastwards - to countries like Romania, where the profitability of real estate investments is still high," believes Pavel Tonski, manager of the real estate consulting firm Accreo Taxand. Among the Polish investors testing the local market are investment fund Heitman, controlled from Chicago, which manages assets worth over 15 billion dollars in the United States, Europe and Asia. Heitman is one of the leading investors in Poland. Yields have reached 5.5% for retail space in Warsaw and 5% for offices, according to information from the real estate consulting company Cushman & Wakefield. These values are close to those on Western markets, while in Romania they are around 1.5% higher, taking into consideration the latest transactions made.

2.5m euros invested in first Debenhams store

RTC Holding, which holds the franchise for the British clothing and footwear retail brand Debenhams in Romania, has invested 2.5 million euros in the first store in Bucharest and will open another two stores next year also in the Capital. The store was opened in the new wing of the Bucuresti Mall shopping centre and the next two will also be located in shopping centres, stated RTC Holding's franchise manager Vincentiu Zorzolan. The company also intends to open Debenhams stores in Bulgaria and in the Republic of Moldova where it also holds the franchising rights. The next store in Bucharest will be opened at the beginning of 2008 and a second one towards the end of next year.

8,000 software firms targeted by investors

Vasile Baltac, chairman and CEO of the SoftNet group that last year sold a software and IT services company to Omnilogic, the biggest IT&C distributor on the local market, thinks IT mergers and acquisitions will continue in the next few years with software being the field of choice. He believes this trend will be facilitated by the large number of software companies operating in Romania (over 8,000) which do not have the necessary resources to hold out on the market in the future without access to financial resources and know-how. "We have too many software firms and most of them do not meet minimal requirements of competitiveness in terms of technology, technical equipment and quality assurance. On the other hand they have a huge potential for innovation, which will draw the attention of foreign companies. Acquisitions will mainly target the software sector, with European firms in particular showing an interest in opportunities to use nearshoring, i.e. the outsourcing of a business to neighbouring countries, which do not differ much in terms of time zones. Such opportunities have appeared after the accession," Vasile Baltac told.

www.zf.ro

Updated ...

Five countries to sign accord on Constanta-Trieste pipeline

http://img120.imageshack.us/img120/3457/123kp6.jpg (http://imageshack.us)

Romania, Croatia, Serbia, Slovenia and Italy are due to sign an accord for the construction of a pan-European oil pipeline in Zagreb on Tuesday. The pipeline will bring Caspian and Central Asian oil to Trieste, Italy via the Romanian city port of Constanta.
The 1,856 km-long pipeline will be capable of carrying 40 million tons of oil annually in a first phase, with capacity due to grow to 90 million.
The total costs for the system to become operational are estimated at 2,62 billion USD and may grow to 3,96 billion USD according to the quantity of annual oil deliveries.

www.HotNews.ro, Apr 3, 2007

2.5m euros invested in first Debenhams store

RTC Holding, which holds the franchise for the British clothing and footwear retail brand Debenhams in Romania, has invested 2.5 million euros in the first store in Bucharest and will open another two stores next year also in the Capital. The store was opened in the new wing of the Bucuresti Mall shopping centre and the next two will also be located in shopping centres, stated RTC Holding's franchise manager Vincentiu Zorzolan. The company also intends to open Debenhams stores in Bulgaria and in the Republic of Moldova where it also holds the franchising rights. The next store in Bucharest will be opened at the beginning of 2008 and a second one towards the end of next year.


Heeeeeelp! The Romanians are invading us economically!!!!.

Just kidding. When will you open these Debenhams stores?

^^ We're invading you :banana: ... with shoppers apparently :nuts: ... Romanians are shopping in Bulgaria as its cheaper, it seems ... :cheers:

With regards to Debenhams I have not got more news about it ...

^^ We're invading you :banana: ... with shoppers apparently :nuts: ... Romanians are shopping in Bulgaria as its cheaper, it seems ... :cheers:

With regards to Debenhams I have not got more news about it ...

I read about the RO shoppers in the BG press. You are more than welcome to leave your euros in Bulgaria, since you make more of those than us. :)

^^ :lol: Thinks are heating up in RO ... its called young democracy ...:cheers:

http://www.iht.com/articles/2007/04/03/news/letter.php?page=1

^^ If it was peace it would've stunk ...

But this is bad: - http://www.iht.com/articles/2007/04/03/europe/bucharest-web.php


and more news ...

Romania economy seen growing in 2007

03 Apr 2007 bbj.hu

Romania's economy is forecast to grow by 6.5% this year, down from 7.7% in 2006, the national commission for prognosis said Monday.
Annual inflation is expected to slow to 4.3% from 4.87% last year, the commission said. For 2008, it predicted that GDP growth would slow to 6.3%, with inflation of 3.5%. Romania, which joined the European Union on January 1, has enjoyed rapid growth since 2001, after years of recessions and restructuring of heavy industries in the 1990s. (businessweek.com)

You grew at 7.7% in 06. Damn!!! We recoreded 6.1% growth in 06. You might be overheating.

http://www.bestival.ro/romana/index.html

Transactions on forex market hit record high in February

The interbank forex market set a new record in the volume of transactions for February with 22.5 billion euros, four times higher than the monthly average of 2004 and 62% higher than the monthly average of 2006, according to the NBR data. "A significant share" of the volume traded on the forex market is due to speculative capitals the central bank believes.
The volume of foreign currency transactions exceeded NBR's foreign currency reserve (21.6 billion euros) for the first time in February.
After a sudden adjustment in September and October 2006, right after the full convertibility of the RON was announced, the inflows of foreign capital have supported a constantly upward trend of trading volumes.

Anchor buys 1 million square metres for its projects

Anchor Grup bought around one million square metres of land in Bucharest and nearby the Capital, where it intends to develop several real estate projects, which will consist of office space, residential and retail space, the company announced on Thursday. In 2007, Anchor Grup will continue real estate investments by erecting two office buildings in Bucharest, close to the shopping centres Bucuresti Mall and Plaza Romania. The company also acquired around one million square metres of land in Bucharest and surrounding areas, where it will develop office buildings and residential complexes, which will also include commercial and retail space, states a company release. Anchor Grup owns the Bucuresti Mall and Plaza Romania shopping centres in Bucharest. Last year, the developer initiated a plan to expand the Bucuresti Mall commercial centre, by building another 9,000 square metres of lettable area and a multi-storey car park with an 800-vehicle capacity.

Raiffeisen: 420 branches in 2009

The Raiffeisen Bank network is to reach 420 branches in 2009, against 265 at the end of 2006, according to the plan announced by the parent bank in Vienna. This will be the most significant network expansion among all subsidiaries in the region. Within Central and Eastern Europe Raiffeisen International's biggest network is in Ukraine, where it has already taken over 1,312 branches from Bank Aval, and plans to refine its network to 1,278 by 2009. On the Romanian market, Raiffeisen's territorial network lagged behind its competitors last year, being left behind even by Banca Transilvania's network, after those of the CEC, the BRD and the BCR respectively. In addition to its branches, Raiffeisen also had 850 ATMs and 6,700 POS-es operating in large retail shops.

Alro enters billionaires club

The stock exchange capitalisation of aluminium producer Alro Slatina has increased by 313 million euros in the last couple of days reaching a total of 1.28 billion euros yesterday. Alro's shares resumed trading more than 4 months after they were suspended in order to complete the merger with Alprom Slatina. In terms of capitalisation, Alro became the third-largest company on the Stock Exchange after Petrom and BRD, and replaced Banca Transilvania in the third position. Another company whose market value has recently exceeded the 1 billion-euro mark is Transelectrica, whose capitalisation has doubled in less than 6 months. Alro's shares increased 30%, but amid very low liquidities, with transactions totalling just 12,000 euros. The spectacular increase seen by Alro's shares was also due to the exceptionally good financial results reported by the company last year. Alro's net profit increased over 3.3 times to 380 million RON (108 million euros), amid a 36% increase in turnover to 2.19 billion RON (623 million euros). The company proposed to its shareholders that 0.389 RON/share be distributed from the net profit derived in 2006, with the yield for dividends standing at around 6.5%, at a 6 RON/share price at the close of yesterday's trading. At the end of last year, Alro's net assets stood at 1.45 billion RON (428 million euros). Following the merger, the company's share capital stands at 356.9 million RON (105 million euros), with the majority shareholder being the Swiss group Marco holding around 88.8% of the shares.

Specialised financial service companies seek to enter the market

Besides lending institutions, other companies that provide financial services from the European Union continue to notify the NBR (National Bank of Romania) about their intention to provide services directly on the Romanian market on the strength of the financial European passport. A recent example is Compagnie Generale D'Affacturage (CGA) the factoring division of the Societe Generale group. Specialising in short term management of receivables, CGA was set up by SocGen in 1976 and is the fourth largest factoring company on the French market. In 2005, it funded 9.2 billion euro worth of receivables. On the Romanian market, SocGen provides domestic and international factoring services through the BRD, which factored invoices worth 328 million euros last year, up 152% against 2005. The bank estimates it holds a 42% share in this market. It remains to be seen whether the CGA will confine itself to providing services to its clients that have contracts with Romanian companies, or whether it will additionally extend its offer to the local market. Irish company Elavon Financial Services and British company Citadel Commerce have joined the NBR list. Based in Dublin, Elavon is a branch of American bank U.S. Bancorp, set up in 1929, which covers an extensive range of financial services. The Irish -based company is used as a European platform in order to attract merchants to set up POS-es for credit cards and for processing credit card transactions. British company Citadel Commerce, established in 1999, is also specialised in processing payments and in providing integrated payment solutions for electronic commerce.

Zara licensee to expand network by 42 stores

Azadea Group, the company that introduced the Zara, Pull and Bear and Sunglass Hut brands onto the domestic market, is to expand its current 3-store network to another 42 locations by mid next year.
"The retail is largely dependent on the development of retail space. We would have expanded long ago, had we had room to do so. However, we had to wait for the real estate sector to develop first," says Marian Radu, Azadea Group's country manager for Romania.
According to its representatives, the locations the company are expected to expand to include Trigranit Polus City Center Cluj, the shopping complex in Constanta and Baneasa Shopping City, where it has already rented 6,000 square metres. "We are also in talks with many other developers nationally and also in Bucharest," Radu added.

www.zf.ro/

CFR investeste 70 milioane de euro in modernizarea garilor
La sfârşitul anului vom aştepta trenul pe un peron de... euro-gară. Compania de Căi Ferate investeşte aproape 70 milioane de euro pentru transformarea staţiilor actuale în euro-gări. Banii provin din credite externe şi vor fi folosiţi pentru modernizări substanţiale.

Acestea presupun, pe de o parte, reamenajarea spaţiilor comerciale şi, pe de altă parte, investiţii în parcări, pavaje şi alei de acces. 20 de gări vor suferi transformări radicale până la sfârşitul anului. În unele cazuri modernizările presupun chiar modificarea totală.

Investiţiile CFR vor merge în două direcţii - prima se referă la modernizarea staţiilor de cale ferată din cinci mari oraşe. Este vorba despre Craiova, Timişoara, Cluj-Napoca, Iaşi şi Constanţa. A doua direcţie prevede reabilitarea unor gări de mai mică importanţă.

Lucrările de modernizare au fost deja demarate şi ar trebui încheiate până la sfârşitul anului. CFR a contractat în acest sens două împrumuturi externe. Pentru primul proiect este vorba despre un credit de 24 de milioane de euro de la Banca Europeană pentru Reconstrucţie şi Dezvoltare, pe o perioadă de 15 ani. Cea de-a doua investiţie, pentru gările mai mici, s-a făcut în cadrul unui program cu finanţare Credit Suisse First Boston International, şi se ridică la 60 de milioane de dolari.

moneychannel.ro

Reassessment gives investors' properties 20% more value

Part of the investment funds that made significant acquisitions on the domestic market last year had their properties reassessed, which led, in some cases, to an increase in the market value of their assets by as much as 20% in less than a year.
Out of the properties that were the object of major deals last year, the Millennium Business Center office building, near the Bucharest Stock Exchange, witnessed one of the highest rises in value, being appraised at 50.4 million euros on January 31, 2007.
The building was acquired by the Brits at European Convergence Property Company (ECPC), a fund managed by Charlemagne Capital, in July of last year, in a 42.5 million-euro deal, which included transaction costs.
This almost 20% appreciation is due to the decline of investment yields on the office segment and also to the lack of similar supply on the office market, believes Radu Lucianu, managing partner of the real estate consulting company Eurisko and consultant of the deal. The Brits made two more important acquisitions on the Romanian office market- PGV Tower and Construdava, for 24.5 and 20.1 million euros respectively, yet reassessments did not find any major increases from the original acquisition value.
Therefore, SHM Smith Hodgkinson, which performed the reassessments for all ECPC properties in Romania, set a market value of 25.6 million euros (plus 4%) for the PGV Tower and of 21.5 million euros (plus 7%) for Construdava.
The retail park in Sibiu, European Retail Park, purchased for 82.7 million euros by another British investment fund, North Real Estate Opportunities Fund last November, in turn witnessed a significant rise in value, by more than 15% in approximately three months. Real estate consultancy company Jones Lang LaSalle reappraised the retail park at 95.8 million euros, a value derived inclusively from a slight decline of yields on the market. However, in the event of a new transaction, such reassessments will not matter too much.
"These reassessments are of very little consequence in a transaction. As far as the real estate practice goes, banks take such appraisals into account when they are requested to grant a loan," Lucian explains.
The risk of investments in Romania has gone down and the market has become appealing to a greater number of investors, driving the yields down towards the European average in the process, believes Florin Nine, broker with the investment/land department of Regatta.
As for the small-sized projects acquired in early 2006 , the reassessment of properties may generate a margin of more than 20%, which occurred in the case of another British investment fund, Fabian Romania Property.
The British fund invested in the Banu Antonache office building, bought for 12.04 million euros in January last year, which was reappraised at 14.6 million euros (plus 21%) at the end of 2006.
In addition, the first of Fabian's acquisitions, Cascades Office Building, added to the portfolio for 12.2 million euros at the end of 2005, was assessed at 13.8 million euros (plus 13%) on December 31, 2006.

General Motors financing division arrives in Romania through Raiffeisen Leasing

Raiffeisen Leasing International sealed a partnership for cooperation in Central and Eastern Europe with GMAC, the financial services division of General Motors, and Romania will be the first country where this agreement will be implemented. Under the partnership, Raiffeisen Leasing International will grant funding products under the GMAC brand in countries where the company is not yet present. "These markets offer interesting growth opportunities. In the next 18 to 24 months, we will launch our products and services in all these countries. Romania will be the first country where we will start operating in the next few months," stated Paula Miller, development manager for South Eastern Europe, and general manager of GMAC for Hungary, the Czech Republic and Slovakia. This initiative will help GMAC sustain the products and services offered by GM in nine countries from Central and Eastern Europe- markets where it is not yet present. "This cooperation will provide us with the infrastructure needed in order to move quickly in these countries," explained Miller.

TAROM: 20% more passengers

TAROM, the biggest air operator in Romania registered a four-year high for occupancy rates in the first two months of this year, following a 20% increase in the number of passengers against the same period last year, according to data supplied by the Association of European Airlines (AEA). TAROM flights had a 60% occupancy rate in January, and a 61.3% rate in February compared with the similar period in 2005 and 2006, when the occupancy rate fluctuated between 53% and 58%. In particular, TAROM exceeded the occupancy rate registered in 2004, which was considered an exceptional year for the company. Although in 2005 and 2006, the number of passengers increased by around 10% every year, TAROM had a considerably lower occupancy rate against 2004. The same can be noticed in terms of profit, in 2004, TAROM made a 12.8 million-euro profit, in the following two years, the profit stood at 1.1 million euros and 2.3 million euros respectively.

Bad news ... McDonald's set to double number of restaurants

The domestic market provides all the necessary conditions for McDonald's to reach a number of 100 restaurants in Romania, from its current 52, McDonald's representatives believe.
"Romania has huge potential and we consider the current number of outlets to be insufficient. McDonald's Romania will be able to operate 100 outlets on medium term (5-7 years i.e.)," stated Cristian Savu, communications manager with McDonald's Romania.
According to McDonald's medium-sized cities in Romania have recently reached the potential the company was predicting. At the same time, the decision to embark on a new development stage was based on the rising purchasing power of Romanian consumers, adds Cristian Savu.

Baltika builds 20-store network

Estonian clothing retailer Baltika, which operates 118 stores in Estonia, Latvia, Lithuania, Ukraine, Poland and Russia, intends to open stores in all large cities in Romania within the next four years. "In about three to four years, we will open Baltika stores in all major cities in Romania, which means the introduction of around 12-20 new stores. Currently, we are in negotiations with all the main shopping centre developers in the area," Jaan Jarv, development manager of Baltika Group, told ZIARUL FINANCIAR. The company representative did not specify the exact location of the stores, but mentioned that first store would be opened in Bucharest, most likely under the Monton brand.

www.zf.ro

Updated ...

Five countries to sign accord on Constanta-Trieste pipeline

http://img120.imageshack.us/img120/3457/123kp6.jpg (http://imageshack.us)

Romania, Croatia, Serbia, Slovenia and Italy are due to sign an accord for the construction of a pan-European oil pipeline in Zagreb on Tuesday. The pipeline will bring Caspian and Central Asian oil to Trieste, Italy via the Romanian city port of Constanta.
The 1,856 km-long pipeline will be capable of carrying 40 million tons of oil annually in a first phase, with capacity due to grow to 90 million.
The total costs for the system to become operational are estimated at 2,62 billion USD and may grow to 3,96 billion USD according to the quantity of annual oil deliveries.

www.HotNews.ro, Apr 3, 2007

^^ ^^ ^^
5,000 to be hired for Constanta-Trieste pipeline

The construction of the Constanta-Trieste pipeline could generate 5,000 new jobs over the period the project is carried out, of which 1,000 will be permanent ones, according to the representatives of the Economy and Trade Ministry (MEC).
Oil Terminal and Conpet companies operating in this field, both state-owned firms, could become the operators of this pipeline, which will expand their activities and implicitly add to their revenues, according to the above-quoted sources.
According to MEC representatives, a meeting is scheduled in Bucharest in the second half of this month, during which possibilities related to the development of the project are going to be discussed and assessed.
For the time being, the form under which the financing of the project is to be provided has not been set, with the most likely scenario being the establishment of a project company that is to bear all construction costs.

"We are very interested in delivering the project related to the construction of Constanta-Trieste pipeline.

"To us, this is an opportunity we'd be ready to finance at any time. We would be connected to the crude oil resources of the Black Sea area and the Caspian Sea," says Dinu Patriciu, the chairman of Rompetrol group.
The group already owns the most important refinery of Romania, Petromidia, and could get other refining facilities in Serbia if it takes control over the majority stake in the biggest Serbian oil company, NIS (Nafta Industrija Srbije). Serbia, together with Croatia, Slovakia, Italy and Romania last week signed the ministerial statement for this project.
At present, there are three alternatives for the construction of this pipeline, as pointed out in the feasibility survey conducted by Hill International, a US firm specialised in providing consulting services for construction projects.
The money Romania can make depend on the alternative to be chosen. Sums range between 1.8 and 3.5 billion euros considering a shipping capacity ranging between 40 and 90 million tonnes of crude oil per annum.
These cumulated benefits are calculated for a pipeline life span of 20 years.
The pan-European Oil Pipeline (PEOP) between Constanta and Trieste will start being exploited in 2012, according to Reuters.
With a length of 1,400 kilometres and costs estimated to hit 2-3.5 billion euros, the oil pipeline is going to supply refineries in northern Italy and Central Europe with oil coming from the Caspian Sea area.
Half of the oil pipeline will be located on the territory of Romania.

www.zf.ro

BenQ enters LCD TV market in Romania

BenQ, the Taiwanese producer of electronic equipment (which derived 12.3 billion dollars in turnover in 2005) entered the Romanian market of liquid crystal TV sets on Wednesday, in response to the skyrocketing domestic demand. The company was aided by the elimination of high customs duties, as a result of Romania joining the European Union. "We expect the demand for LCD TVs, in Romania, to rise from the 20,000 units registered last year, to 150,000 this year, and according to our estimates, it will stand at close to a quarter of a million units next year," stated Bobby Durbac, marketing manager of BenQ Romania. With Romania's entering the EU, customs taxes for imports of electronics from Asia have dropped from 42% to 14%. However, since the BenQ products brought to Romania are manufactured in the Czech Republic, customs taxes will be close to zero, which will lead to much more competitive pricing. In response BenQ is investing massively in boosting its production capacity in the Czech Republic from two assembly lines to ten. The new electronic products have been available in the Media Galaxy network since Wednesday. Media Galaxy belongs to the Altex group, BenQ's strategic partner in Romania.

Rabobank involved in residential project

Bouwfonds Property Management, the real estate investment arm of Dutch bank Rabobank, intends to invest 25 million euros next year in a 100 to 150-home residential project in a city outside Bucharest. "As the real estate market in Romania is developing very quickly we are currently looking closely at the residential sector of the market and are interested in opening an office in Bucharest at the end of 2007 or the beginning of 2008," Han P.T.M. Joosten, market research manager at Bouwfunds Property Management, told ZF. The company is one of the biggest real estate developers in the Netherlands and intends to develop real estate projects as part of a joint venture with a Romanian company. "Our strategy is to put together partnerships with local developers and, when we open the office, we intend to hire Romanian managers to run our operations," specifies Joosten. As there are already many developers on the Bucharest market, the Dutch are considering investing in one of the developed cities outside Bucharest. The company has expanded its operations in Central Europe over the last few years and last year entered the Hungarian market. "When we begin operations in Romania, we want to stay here as long as possible, as we have done in other European countries. For instance, we have been present in the Czech Republic for over ten years and continue to develop projects there. Our target is to develop residential projects which will include up to 1,000 homes," added Joosten.


www.zf.ro

Inflation rate drops to 3.66% in 12 months


The annual inflation rate decreased to a level of 3.66% in 12 months, compared to 3.81% at the end of February, according to the national statistics Institute (INS). In March, the inflation rate was 0.07% of the previous month, compared to a 0.04% indicator in February.
The general food prices evolution was mainly influenced by the dropping prices for eggs (- 10.5%), potatoes (-2.4%), pork meat and cow milk (-0.6%). The prices grew between 0.3 and 1.2% for fruits and sugar.
The Central Bank (BNR) aims at a 4% inflation rate for 2007, or at least a 4 +/- 1% rate.


Cheap Chinese SUV eyes Romanian market
http://img296.imageshack.us/img296/6820/zaqgm7.jpg (http://imageshack.us)

Great Wall Motors, the largest SUV and truck maker in China, will enter the Romanian market with its Hover SUV in an attempt to test the potential of the European market for Chinese cars. The importing company hopes to sell over 1000 Hover units at prices ranging from 13,000 to 17,000 euro, AutoIndustry informs.
Hover will be imported to Romania by a company belonging to the Alexandrion Group, which also holds the commercial license for Hungary, Bulgaria, the Moldovan Republic and Macedonia.
According to AutoIndustry, some 250,000 new cars were sold in Romania in 2006.
Great Wall Hover eyes a slice of the market also targeted by Renaults’ Romanian division Dacia, According to French magazine AutoPlus, Dacia’s own SUV may come at a price of about 13,000 euro and is due to be launched in 2009 or 2010 the latest.

^^ This is what we need: COMPETITION :banana:
www.english.hotnews.ro

The romanian real estate boom on CNN, World report, this morning:

http://www.realitatea.net/playlive2.php?file=/media/video/video_001_00055185_1176535441_00.flv&titlulive=Reportajul%20despre%20pia?a%20imobiliar?%20din%20România%20difuzat%20la%20World%20Report

^^ I know this is not on topic with the subject of the video... but that view from the top of Casa Poporului is great, they should really open an observation deck out there, I'm sure it would be a great attraction.

http://farm1.static.flickr.com/234/459015880_b5a19d4270_o.jpg

^^ I know this is not on topic with the subject of the video... but that view from the top of Casa Poporului is great, they should really open an observation deck out there, I'm sure it would be a great attraction.

http://farm1.static.flickr.com/234/459015880_b5a19d4270_o.jpg

... that`s why I shared it with you ! No doubt, they MUST open an observation deck there because Bucharest continously changes and peoples may have the best panoramic view of Bucharest from that point !

i agree with you!!...what do you think about building a tower like cn tower??
I know its hard but it will give the city another land mark!!
i hope so,,

What was the cnn saying about the video?

... that`s why I shared it with you ! No doubt, they MUST open an observation deck there because Bucharest continously changes and peoples may have the best panoramic view of Bucharest from that point !

^^ :nuts: :lol:
http://www.skyscrapercity.com/showpost.php?p=11499896&postcount=225

http://img211.imageshack.us/img211/3128/azaee0.jpg (http://imageshack.us)

On a serious note, just imagine the view from Casa Poporului when Esplanada is finished ... :okay:

Proprietarii magazinului Unirea din Bucuresti, Carmen si Dan Adamescu, si-au propus sa investeasca peste 100 de milioane de euro pentru a dubla, in urmatorii trei ani, suprafata de 80.000 de metri patrati a centrului comercial.

"Arhitectii nostri lucreaza in prezent la planurile de extindere. Nu stim inca daca noile spatii vor fi in curtea interioara sau daca vom mai construi opt etaje peste cele existente. Vom incepe constructia dupa ce vom termina lucrarile de proiectare, care vor dura cam sase luni", a declarat Carmen Adamescu, care alaturi de sotul sau, Dan Grigore Adamescu, detine grupul Nova Trade, proprietarul magazinului Unirea.

Suma de 100 de milioane de euro necesara extinderii va proveni din credite bancare.


Daca magazinul Unirea gazduieste 220 de chiriasi, alte aproximativ 100 de firme sunt pe lista de asteptare in vederea eliberarii unui spatiu in acest centru comercial, sustine Carmen Adamescu. Mediafax

source: www.zf.ro

Africa-Israel buys land worth 60m euros for housing

The Africa Israel Europe real estate development firm, which is building the Cotroceni Park shopping complex in Bucharest, plans to buy three plots of land valued between 60 and 70 million euros within the next two-three months, for residential developments.
"So far we've paid 50 million euros for four plots of land for the proposed projects. We are in talks to acquire three more, in total worth 60-70 million euros and expect talks to be resolved within the next two months," stated Reuven Havar, CEO with Cotroceni Park. However, he would not reveal the location of the land proposed to be acquired. The main shareholder in Africa Israel is Lev Leviev, one of Israel's wealthiest businessmen, who owns more than 80% in the company. Leviev is ranked 210th among the world's richest people, according to Forbes, with a fortune worth more than four billion dollars.
Havar explained that all the land purchases completed on the domestic market so far had been self-funded by the company, which was this time planning to seek financing from domestic banks for 75% of the value of each plot of land.
In addition, the company intends to float on the London Stock Exchange at some point this year.
"We proposed to do this from the very beginning, but the stock exchange entered a downward trend and we made the decision to wait.
"We may be listed on the London Stock Market by the end of the year and through this move hope to raise several hundred million euros," specified Havar.
The company reached an agreement with a German bank for a loan of more than 100 million euros, to be used for the financing of Cotroceni Park, which is being developed in partnership with the New Century Holding investment fund on the former UMEB Bucuresti site.
"At present we are working on the foundations and hope to designate a general contractor, in about one month's time, from among four firms we are currently in talks with," says Havar.
More than 60% of the 75,000 square metre lettable area of the Cotroceni Park project has already been rented out to businesses.
The second shopping centre the company intends to develop in Romania will be located in Arad involving investments that will exceed 50 million euros. The company bought a 1.7-hectare area of land located in the central area of Bucharest and is considering various development opportunities, with the potential possibilities including; a residential project, an office building or a combined project.
"All the plots of land have been acquired for development purposes. Like most developers, we are trying to derive yields of at least 12%. In the following years, yields will decrease towards around 6% in the case of acquisitions in Romania and we may consider selling properties, but the decision ultimately rests with the owners," specified the representative of AFI Europe.

....................................................................................
Romania, the biggest market in the region for Porche Holding :cheers:
43.000 cars sold last year and 50.000 target for 2007

^^
Romania este cea mai mare piata din regiune pentru Porsche Holding

Romania este cea mai mare piata din Europa Centrala si de Est pentru Porsche Holding, cu vanzari de peste un miliard de euro anul trecut, in urcare cu 27% fata de 2005, potrivit datelor publicate astazi de filiala din Romania a grupului.
In 2006, Porsche Holding a consemnat o crestere a vanzarilor in Europa Centrala si de Est cu 14%, la 3,3 miliarde de euro, se arataintr-un comunicat al Porsche Romania.
"In prezent, 30% din cifra de afaceri a holdingului provine din activitatile importatorilor Porsche aflati in tarile din sud-estul Europei, care insa au debutat diferit, in functie de evolutia politica", a spus Hellmaier. Vanzarile Porsche Romania au urcat anul trecut cu 26%, la peste 43.000 de unitati. Compania va livra in luna aprilie masina cu numarul 150.000. Importatorul a revizuit in crestere, la jumatatea lunii martie, obiectivul de vanzari pentru acest an, de la 47.500 unitati la circa 50.000, cu 15% mai mult decat in 2006, in principal pe baza marcilor Skoda si Volkswagen.


www.zf.ro

[B]First Starbucks' location: Plaza Romania

Starbucks, the biggest global coffee chain has chosen as its first location in Romania, the Plaza Romania shopping centre on Timisoara Boulevard, Bucharest. Plaza Romania representatives confirmed the information, but did not supply any further details.

^^ Opened today ... :cheers:
http://img443.imageshack.us/img443/7188/12206396wc0.jpg (http://imageshack.us)

Un nou mall in Bacau: Tiago Mall:banana:
Compania nord-irlandeza Mivan va construi in parteneriat cu dezvoltatorul irlandez Moritz Group o retea de 10 centre comerciale de tip mall in principalele orase din Romania. Deja locatia noului centrului comercial din Bacau a fost stabilita si terenul pentru mall-ul bacauan a fost achizitionat. Finalizarea proiectului a fost programata pentru sfarsitul anului 2010.

“Am achizitionat deja locatii-cheie in marile orase din Romania, intentia noastra fiind de a revolutiona experienta de shopping a romanilor. Desi este cel mai nou membru al UE, economia tarii se dezvolta rapid, ridicandu-se la standardele internationale din domeniu”, a afirmat John Houghton, Property Director in cadrul companiei Mivan.

Primele sapte mall-uri vor fi construite in Arad, Oradea, Brasov, Targu-Mures, Ploiesti, Bacau si Sibiu. Centrele comerciale, dezvoltate sub marca Tiago Mall, vor avea suprafete inchiriabile intre 25.000 mp si 30.000 mp si vor cuprinde, pe langa galeriile comerciale, sali de cinema, restaurante, food court si spatii de parcare.

“Piata romaneasca de retail nu beneficiaza inca de o infrastructura dezvoltata, in schimb cererea consumatorilor pentru spatii comerciale de nivel european este foarte mare. Toate acestea, combinate cu interesul in crestere al retailerilor internationali pentru noi oportunitati in Romania, ne-a convins ca un lant de 10 mall-uri va fi un succes”, a adaugat Houghton.

Grupul Mivan are sediul central in Irlanda de Nord si desfasoara activitati in mai multe domenii, in Europa, Asia si Statele Unite ale Americii. Mivan opereaza in Romania din 1998 ca parte a unui joint-venture Mivan-Kier.

Moritz Group este unul dintre cei mai importanti dezvoltatori si investitori din Irlanda. In Romania, grupul are activitati independente inca din anul 2005.

^^ Opened today ... :cheers:
http://img443.imageshack.us/img443/7188/12206396wc0.jpg (http://imageshack.us)


i love :cheers: starbucks they make really good coffe..!!
finally in romania!

Ugh....starbucks? GAY! why couldnt they just stay away. Ma....aici in boston e 3$ o felie de chec....come one!

:ohno: :eek2: :runaway:

Ugh....starbucks? GAY! why couldnt they just stay away. Ma....aici in boston e 3$ o felie de chec....come one!

^^ You forgot to say that they earn around 2-3000 $/month ... so all in all, its cheaper and more afordable than Romania ....
BTW I am not a Starbucks fan ... this is more about investments ... and clearely the coffee shop culture ( more money in esence - and growing middle class) in Bucharest is growing ... so this is just a positive sign of the state of Romania's economy and potential ... rather than just a cup of coffee ...capitoooooooooooooo ?!?!!? :cheers:

^^
www.zf.ro
Starbucks sees Romania as springboard into the region

The opening of the first Starbucks coffee shop in Romania, which is also the first investment of the group in Central and Eastern Europe, comes five years after the American company Starbucks signed a partnership with Greek company Marinopoulos, creating the Marinopoulos Coffee Company. According to company representatives, five years ago they viewed Romania as an interesting location, but plans to enter the local market only began to take shape in the last eighteen months, when the process of securing permits and of searching for locations started. "Our entry onto the Romanian market is part of a strategic plan for the region. We have chosen the Romanian capital as a starting point for developments, from which we intend to expand on a larger scale. We believe people in Romania have a traditional appreciation of coffee and the potential for growth is very high. Additionally, our partners (Marinopoulos) were already present here with some franchises of their own (Marks & Spencer and Sephora)," stated Cliff Burrows, chairman of Starbucks for Europe, the Middle East and Africa. Starbucks will continue its expansion by the opening of the new coffee shop, which will be located within the Bucuresti Mall, and likely to open in May. Afterwards the company will be looking for street front locations, Burrows says.

also ...

Elba has 4.5m-euro investments budgeted

Producer of electric lighting fixtures Elba, which is based in Timisoara, has budgeted investments worth around 4.5 million euros for this year, in developing and modernising its production capacities. "We intend to acquire equipment, so as to keep up with our prime customers' increased demand for products. The funds will be evenly distributed to our automotive and lighting fixtures divisions, and both projects will be self-funded," Fidelio Iancu, business promotion manager of Timisoara-based Elba, told ZF Transilvania. The company's investment projects for 2006 were also aimed at developing production capacities, with plastic injection moulding and plastic and metal coating being targeted for development. According to the company management, the budget allocated for investments in 2006 exceeded 3 million euros. In 2005, investments stood at 4.7 million euros and were primarily used for developments in the production of auto components.

Euromall developers to build 1,000 apartments

Two months ago, developers of the Euromall shopping centres acquired an almost seven-hectare plot nearby Baneasa airport, in the Northern part of Bucharest, on which they intend to build around 1,000 apartments soon. " The land cost almost 30 million euros and we intend to build luxury apartments over the entire area. Currently we are in the design stage of the project, and in the next phase will ask for the necessary consents to begin construction," Moshe Turgeman, general manager of Euromall told ZIARUL FINANCIAR. The company has four shopping centres currently under construction in Pitesti, Galati, Ploiesti and Craiova, and this is its first project on another segment of the real estate market. "We believe the market will be saturated with shopping centres by 2010-2011, so we intend to expand our interests on other market segments, where there is still the potential for development.

Intesa Sanpaolo considers acquisitions in Romania

Intesa Sanpaolo, the biggest Italian bank, formed by a merger between Banca Intesa and Sanpaolo IMI, is considering boosting its operations in Romania by means of acquisitions, as well as by investing in its organic growth, according to the bank's business plan for 2007-2009, which has been approved by the Supervisory Board. Alongside Russia, Romania is the market with the weakest presence within the international division of the Italian bank, but in the cases of both countries, the bank is "targeting a strong growth". "Penetration is still limited. We anticipate a strong growth, both in terms of volumes and in terms our market share. We intend to develop in specific geographic areas, based on an extensive distribution network, and to utilise the group's best commercial and crediting practices to the fullest, as well as taking into account external growth opportunities," states the business plan for Intesa Sanpaolo.

Vodafone extends coverage of 3G broadband services

Vodafone Romania has expanded the coverage of its 3G broadband service, which is based on HSDPA technology, from 7 cities to 23, which will cover 30% of the population, stated the chief executive officer of the company, Liliana Solomon, on the 10th anniversary of the operator. 3G broadband services, which allow for high-speed data traffic, were introduced in Bucharest at the beginning of November last year, and later in Cluj-Napoca, Brasov, Timisoara, Constanta, Craiova and Iasi. The other cities that will now be covered by the service are Ploiesti, Sibiu, Oradea, Targu-Mures, Arad, Pitesti, Galati, Braila, Satu-Mare, Baia Mare, Bistrita, Bacau, Buzau, Alba Iulia, Turda and Deva. Vodafone services based on HSDPA (High Speed Downlink Packet Access) technology are currently four times as fast as those based on 3G technology, providing an Internet connection speed of up to 1.4 Mbps.

ING Real Estate opens office in Bucharest (RO)
www.europe-re.com

ING Real Estate Investment Management has announced the formal opening of its new office in Bucharest, Romania.
The opening will be followed by a seminar on real estate investment and development opportunities in Bucharest and Romania.
ING Real Estate has been monitoring the Romanian property market since 2001. In
2006, ING Real Estate Investment Management decided to target Romania for its new
ING Property Fund Central and Eastern Europe. In line with the strategy of the fund,
the Bucharest office will focus on acquiring high-quality office, retail and logistics
properties nationwide.

“We are pleased to strengthen ING Real Estate Investment Management’s operations
in Romania with the opening of our new office in Bucharest. I am confident we will
continue to build on our existing experience and expertise, establish closer local
relationships and develop our investment portfolio in the country,” Pieter Hendrikse,
CEO of ING Real Estate Investment Management Europe, said.

^^ Opened today ... :cheers:
http://img443.imageshack.us/img443/7188/12206396wc0.jpg (http://imageshack.us)

Whooo! Stabucks is getting closer to BG. They are already in Romania. The the way, the same Greek company has the franchise rights to operate in BG.

Petrom to invest 150m euros in Kazakhstan
www.zf.ro

Romanian company Petrom continues to develop new exploration and production perimeters through a new acquisition in Russia, as well as through investments of some 190 million dollars (152 million euros) in a deposit in Kazakhstan, so as to reach global production of 70,000 barrels per day.

"In March, we were also granted exploration rights for another perimeter in Russia through the firm we took over last year, Ring Oil. We're permanently participating in tenders for Russian perimeters. The segment we're positioned on is competition with small independent players. Our attention is focused on acquisitions on the production (segment)," says Werner Ladwein, a member of Petrom executive board, in charge with exploration and production activities. Last year, Petrom announced it acquired a 74.9% majority stake Ring Oil Holding & Trading of Cyprus, whose shareholders were from Russia and other countries. Ring Oil held 100% in six Russian firms, all with a portfolio of exploration perimeters in that country. The acquisition included 8 exploration licences and an exploration and production licence, and its value remained confidential.
The production target in Russia is of 30,000 barrels per day. "That we have a target of 70,000 barrels per day by 2009 points to fact that we need further acquisitions, either of companies or perimeters," says Petrom representative.
Petrom's second foreign exploration area is Kazakhstan, where the company is present in four regions with its affiliates. "We will invest around 190 million dollars (152 million euros) to develop the Komsomolskoe deposit of Kazakhstan. The development is due to be finalised in 2008 and it will generate a production level of 10,000 barrels per day in the following years," says Ladwein.
The volume of investments to be made in the region largely depends on what resources the company discovers there. The production target set for Kazakhstan is of 30,000 barrels per day.
Last year, the representatives of OMV, the majority shareholder in Petrom, stated they were in talks to take over exploration rights for some important perimeters of Bulgaria and Ukraine, with the rights to be transferred to Petrom. The Austrian group puts deals at several million euros. The deal in Bulgaria will most likely be finalised by yearend.

IKEA: 5m-euro sales in three weeks

The first Romanian store opened by Swedish retailer IKEA, has witnessed sales worth 5 million euros within its first three weeks in business. The store opened on March 21 this year. "In the first week, we registered 2 million-euro sales," stated Cornel Oprisan, retail manager with IKEA Romania. This year, the company has budgeted sales worth 40-50 million euros. One of the biggest transactions recorded on a receipt was of 14,500 RON (4,600 euros) paid by an IKEA customer. Overall the IKEA store covers a 26,000 square-metre area, with total investments in building and decorating the store standing at 25 million euros. A country the size of Romania can be covered by around 5 to 8 stores. At present we are examining several locations, but for the time being, we have not made any definite decisions," said Cornel Oprisan. IKEA has 7,000 furniture and decorative items on display, of which around 10% are supplied by Romanian producers. "One of our objectives is to increase the number of local suppliers we use," added Oprisan. IKEA's entry onto the market has put pressure on furniture prices, as it targets a market segment of people with average incomes. Competition in terms of furniture retail will be mostly felt by the medium-sized players, which operate a low price policy. The business growth of furniture manufacturers has seen a significant reduction in the last few years, as over half of the furniture production is exported. The IKEA brand was originally registered in 1943 in Sweden. The total number of visitors in IKEA stores worldwide stood at 500 million in 2006, whilst the total number of catalogues distributed stood at 174 million.

Russia's Lukoil to build biofuel plant in Romania

Russian oil major Lukoil, which owns the Neftochim oil refinery in Bulgarian city Burgas, will deploy crop-derived biofuel installations in Romania, said the Bulgarian reprehensive office of the company.
The news broke after Russian news outlet RBC Daily initially reported that Lukoil had similar plans for a scheme in Bulgaria which were later denied.
Neftochim itself produces non-crop biofuel since 2006. The fuel has a 5% bio component and complies with the Euro-4 fuel standard. All Lukoil pump stations around the country have been geared up to sell the biofuel produced at Neftochim.
According to RBC Daily, Bulgaria processes only half of its 1 mln ton sunseed crop, shipping the remainder to Turkey. That resource could stay in the country and be used for the production of biodiesel.
The Russian publication comments that biofuel projects are currently cheaper to implement outside Russia. In Bulgaria, for instance, there are EU-sponsored mechanism to stimulate the production of biofuels.

http://news.dnevnik.bg

Romania breakthrough for SASI :banana:

Swiss American Securities Inc. (SASI) has been selected to develop the first indigenous international trading service available from a Romanian institution.

Beginning with Austria’s stock exchange, the Wiener Börse, and expanding to multiple international markets throughout 2007, the partnership between SASI and Vanguard, the Romanian market leader in online brokerage and derivatives trading, enables local investors to make foreign trades through their local broker for the first time.
Commenting on the new arrangements, Corina State, marketing manager at Vanguard, said: “As our name suggests, Vanguard seeks to lead the market in providing the latest services to investors. The new regulatory environment has given us freedom to develop our own international trading products, which is important to our clients as we understand their needs and can tailor what we offer. SASI was the ideal partner to help us achieve our aims as it provides an ideal mix of services and markets, together with a very high level of hands-on support.”
Until the start of 2007, Romanian law prevented its brokerage houses from making trades beyond national borders. Investors seeking international stocks could only be given recommendations towards outside institutions. Regulatory changes, defined by the Romanian National Securities Commission, have opened the EU, US and other international markets to the nation’s brokerage community. Vanguard, through its relationship with SASI, is the first broker in Romania to offer this service.
Vanguard had to have confidence that its chosen partner would be willing to learn and adapt to local requirements. Its decision to choose SASI was based on its provision of combined brokerage and custody services, its long experience in serving European clients, but most importantly due to a team that appreciated its needs and was ready to provide a truly personal and customised service.
Success with the project was vital to Vanguard’s reputation as Romania’s market leader in retail brokerage and derivatives trading. It has held a top ten position for seven consecutive years, pioneered online trading in its country, and has an ongoing mission to be at the forefront of new market opportunities that can deliver value to its clients.
Vanguard opted for Austria as its first international market through its partnership with SASI because many major investors into Romania are listed on the Wiener Börse. Austria is the second largest investor into Romania after the United States.
Throughout 2007, Vanguard and SASI will be adding additional markets and introducing these to the local client base.

http://icfamagazine.com

EADS' Eurocopter fails to win tender for Romania's IAR Brasov


BUCHAREST (Thomson Financial) - Romania has rejected the offer by Franco-German company EADS unit Eurocopter to purchase Romanian aeronautical group IAR Brasov, saying it did not meet the required criteria, privatization agency AVAS announced.
'After analysis of the documents provided by Eurocopter SAS France, the privatization commission decided to reject its offer,' AVAS said, without giving more details.
Eurocopter had made the sole offer to purchase 64.89 pct of IAR shares last December.
Eurocopter has been active at Brasov since 2002, when it created a joint company with the Romanian aircraft manufacturer. In 2004, it launched the first production line aimed at modernizing Puma (other-otc: PMMAY.PK - news - people ) helicopters, investing over 1 mln eur.


www.forbes.com

First 43 kilometers of Transylvania motorway might be completed by end-2008

The first 43 kilometers of Transylvania motorway might be completed by end-2008 if the Romanian authorities resolve all problems related to land-expropriation, communication director with Bechtel company in Romania Bogdan Zgarcitu said.

''If we continue the positive cooperation with the authorities, the first segment of the motorway might be ready by end-2008,'' he explained. He underscored that the first segment to be completed in 2008 is 43-kilometer long and stretches between Turda and Gilau (Cluj County, central Romania); the initial deadline for a 52-kilometer area (Turda-Gilau plus another 9 kilometres) is February 2010.

Bechtel representatives on Wednesday evening discussed with Transport Minister Ludovic Orban about the solutions to be identified in order to speed up works at Transylvania motorway. ''We also talked about a law which should comprise all lands to be expropriated , which helps us speed things up,'' Zgarcitu said. Bechtel is working on two motorway segments at the same time: Campia Turzii-Gilau (52 km) and Barcau-Bors (63 kilometers).

The asphalting of the two segments was set for 2009 , after which the road will be opened to traffic. The segments will be connected in 2010 or 2011 and the works will start in 2008. The entire motorway (415 kilometers) is to be ready in 2013. According to Transport Ministry data, constructions works of Transylvania motorway are estimated at 2.25 billion euros plus extra costs. Bechtel will allot 120 million euros for construction works this year.


Bundestag deputy speaker Suzanne Kastner: Romania can be considered 'the tiger of Eastern Europe'
Romania can be considered the 'tiger of Eastern Europe,' said deputy speaker of the German Bundestag Susanne Kastner, pointing to the Romanian market's opportunities still waiting for potential German investors to capitalize on them, reads a press release of the Ministry of SMEs, Commerce, Tourism and Liberal Professions.

Addressing the seminar 'Romanian industry - investments and cooperation partner,' held on the occasion of the Day of Romania organized at the Hanover Industry Fair, Susanne Kastner voiced particular appreciation for the upward trend of Romania-Germany bilateral commercial exchanges and for the evolution of Romanian economy as a whole Iuliu Winkler, Secretary of State for Foreign Trade with the Romanian Ministry of SMEs, presented the businesspeople attending the seminar the economic opportunities and advantages Romania has to offer as a EU member, specifically one of the lowest profit tax rates of all new EU entrants, access to the markets of the Community of Independent States, Asia, the Mideast, and involvement in the large-size projects carried out in the enlarged Black Sea area and the East-Central European region.

In this context, Winkler highlighted the Romanian government's top priority to attract investments in high-tech industry to the Romanian relevant sector

PS.this is for you joce23
www.investromania.ro

Starbucks blows!! they grow like mushrooms, their secret is turkish coffee, they don't filter the coffee very well, as we did when we didn't have coffee filters, pe vremea lu nea Nicu.Eeh $5 for a cup of coffee?

:) It`s wrong. See my signature [ The new tiger of EUROPE (not of EE!) ]

-------------------

Renault expands in North Gate
Renault has taken 9.912 sqm of the class A office development North Gate on a 6 year lease from Creativ Global Property. North Gate development includes two buildings and has a total rentable area of 21.000 sqm. The real estate consultants Cushman & Wakefield acted on Renault’s behalf for the transaction and have been retained by Creativ together with Eurisko for the remaining space.
(20.04.2007)

Pelican Com allocates EUR 300 million for residential projects
Pelican Com plans to invest up to EUR 300 million in five residential projects in Bucharest, which will include houses and commercial centers. The projects will be developed mainly in Pantelimon area where the company purchased a number of plots. The first two projects will include 210 apartments, the total value of the investment reaching some EUR 23 million. Also the company negotiates the acquisition of a plot of four hectares in Pipera where it plans to develop commercial and residential spaces and a hotel, said the sales director of Casa del Sol, Kutsal Durace. The company purchased four plots in Pantelimon area, with surfaces of 5,000 sqm. Another company’s important project will be a commercial center in Pantelimon area for which it will invest some EUR 100 million.
(20.04.2007)

EBRD targets EUR 400 million investments in Romania
The European Bank for Reconstruction and Development EBRD targets this year 20-25 projects in Romania worth some EUR 400 million, said the institution director for Romania, Hildegard Gacek. The international institution has invested so far some EUR 3.5 billion in 190 projects in Romania. The project with the highest value was the acquisition together with International Finance Corporation of 25 percent of BCR stake for $222 million.
(20.04.2007)

Medicover might invest EUR 20 million in private hospital
Swedish provider of private medical services Medicover is looking to build the company’s first private hospital, the investment being estimated at EUR 15-20 million. Currently, Medicover is building a hospital of 200 beds in Warsaw, Poland with an investment of EUR 35 million. After the project will be finalized the company might develop another hospital in Bucharest. Medicover will open medical centers in Timisoara, Sibiu, Brasov, Bucharest and will expand Medicover Victoriei. The company currently owns seven units within which three in Bucharest and one in Focsani, Cluj-Napoca, Constanta and Iasi.
(20.04.2007)

Bermo Group to invest EUR 21.5 million in real estate projects
Bermo Group based in Arad will develop until 2009 real estate projects of some EUR 21.5 million. The most important development is a commercial complex of EUR 15 million. The project, named Bermo Plaza, will be located in Arad, on a plot of 4,500 sqm and will have a surface of 30,000 sqm. It comprises 12 levels and penthouse. The works will start in the third quarter of this year and will be finalized in 2009.
(20.04.2007)

CTP Invest plans to invest in industrial spaces in Romania
Czech CTP Invest, specialized in offices and industrial spaces developments, plans to invest in Romania, Austria and Slovakia and other states within Central Europe. Currently, CTP Invest gets revenues from renting of EUR 59.8 million, representing a annual gross outturn of 6.7 percent. Among the companies which have rented industrial and office spaces from CTP Invest are Accenture, Bridgestone, Citigroup, DSG International, Logica GMC, Telefonica and United Parcel Service.
(20.04.2007)

Ugh....starbucks? GAY! why couldnt they just stay away. Ma....aici in boston e 3$ o felie de chec....come one!

Stau cu Adi pe subiectul asta,ce stiu romanii... or sa invete ei...

ohh i'm sorry!!joce32...iarta-ma ...romania o-sa fie tot timpul tigrul ee si europa!

Guys, whats up with the average pic of Bucharest as the SSC banner? Im sure you could have found something much nicer!

Pesimistule ! :) N-ar fi mai bine sa ne dorim pe termen lung sa fim chiar lei ? Odata ajuns tigru, sigur iti doresti mai mult ! :lol:

Mai in gluma mai in serios cam cum vedeti Romania in 5-10-15-20-25 de ani ? Recuperam ceva decalaje fata de aia care-s acum lei in Vest au ba ? Si daca da, cat va dura ? Oare astia care ne conduc au strategii de dezvoltare serioase si sanatoase pe termen lung sau totul e varza in capetele multora din ei si alearga doar dupa dat tunul de moment ptr. propriul buzunar ! Eu cel putin cand vad fetele la marea parte a clasei politice de la noi ma apuca disperarea sa stiu ca ei ne conduc destinele ! Sper totusi sa se limpezeasca apele (vot uninominal, legea lustratiei, justitie corecta si independenta etc) si la noi anii ce vin si sa dispara multi dintre ei din politica si administratie ca-s destui romani profesionisti si pregatiti care-i pot inlocui cu succes !

inca o-data SCUZAMA..trebia sa fiu ma-i mult optimist


ma-i politica si economia in romania este controlata da cei marii in lume..o-sa ne lasa sa dezvolt-am dar nu o-sa fim nici o data in nivelul eie!!eu cred ca nu dureaza mult pana sa fim o tara eleganta si moderna(ma-i mult de cat sintem acuma)..10ani...15 cel mult si ciar mai putin
toti politicieni in lume e-au bani pt eie dar trebuie sa da si pentru tara nu!??aza zic eu,, se ne rugam la dumnezeu sa fie cat mai bine

Guys, whats up with the average pic of Bucharest as the SSC banner? Im sure you could have found something much nicer!


yeah man..your absolute right:ohno:
there are lots of pics nicer and more beautiful....they should realize that

like this for example...
http://img262.imageshack.us/img262/504/163308936a93d89c542bln2sb4.png (http://imageshack.us)

^^ Much better :okay:

How could they post a banner of Bucharest without asking us!!!! Outrageous!!!

I think we need to look at the bigger picture, we seem to think Bucharest developments as the rest of the country.

Bucharest will...within 10 years, 15 years be on the same level of development as most european capitals, maybe surpass some, atleast the smaller EE capitals.

However, go outside Bucharest, anywhere in the villages and we take a step back in time, a combination of modern and medieval. It cannot be possible in the 21st century, when you go to the countryside to visit relatives to not be able to get to a real toilet....Cand sunt acolo prefer sa ma tin o zi sau doua sau sa ma duc in camp...nu poti sta intro toaleta din aia. Alot of countryside villages are missing running water, gas, not to mention internet connection (ok not rly needed when youre missing running water, but I would die without that.)

Those need to be developed as well asap. Once those are developed (where the majority of the population lives,) there will be a lot more disposable income (jobs, opportunities, spending power of consumer) which means more income to tax and spending power for the government on public projects.

So, while Bucharest will soon be a very highly developed city, we cannot leave the backbone behind.

And people need to be educated, we are transitioning from a manufacturing economy into a service economy. Here is which way the participation of GDP will be heading in the next few years as comparison to the US (all economies go through the exact same model.)

www.cia.gov (the world factbook)

GDP - composition by sector:

agriculture: 10.1%
industry: 34.7%
services: 55.2% (2006 est.)

GDP - composition by sector:

agriculture: 0.9%
industry: 20.4%
services: 78.6% (2006 est.) (actually I recently even read an article in the wall street journal where in the USA, industry is even more down, due to outsourcing, to 14% as service jobs = 84%)

What does this mean for romania? It means the people in the countryside need to go to school, education is very important, otherwise we will have unemployment problems very quickly in the future as companies will be forced to bring in more expensive labor from outside our country since they cannot find the prepared labor in our own. This in turn can cause more problems in the long run, but Im gonna keep it to this brief explanation.

I think we need to look at the bigger picture, we seem to think Bucharest developments as the rest of the country.

Bucharest will...within 10 years, 15 years be on the same level of development as most european capitals, maybe surpass some, atleast the smaller EE capitals.

However, go outside Bucharest, anywhere in the villages and we take a step back in time, a combination of modern and medieval. It cannot be possible in the 21st century, when you go to the countryside to visit relatives to not be able to get to a real toilet....Cand sunt acolo prefer sa ma tin o zi sau doua sau sa ma duc in camp...nu poti sta intro toaleta din aia. Alot of countryside villages are missing running water, gas, not to mention internet connection (ok not rly needed when youre missing running water, but I would die without that.)

Those need to be developed as well asap. Once those are developed (where the majority of the population lives,) there will be a lot more disposable income (jobs, opportunities, spending power of consumer) which means more income to tax and spending power for the government on public projects.

So, while Bucharest will soon be a very highly developed city, we cannot leave the backbone behind.

And people need to be educated, we are transitioning from a manufacturing economy into a service economy. Here is which way the participation of GDP will be heading in the next few years as comparison to the US (all economies go through the exact same model.)

www.cia.gov (the world factbook)

GDP - composition by sector:

agriculture: 10.1%
industry: 34.7%
services: 55.2% (2006 est.)

GDP - composition by sector:

agriculture: 0.9%
industry: 20.4%
services: 78.6% (2006 est.) (actually I recently even read an article in the wall street journal where in the USA, industry is even more down, due to outsourcing, to 14% as service jobs = 84%)

What does this mean for romania? It means the people in the countryside need to go to school, education is very important, otherwise we will have unemployment problems very quickly in the future as companies will be forced to bring in more expensive labor from outside our country since they cannot find the prepared labor in our own. This in turn can cause more problems in the long run, but Im gonna keep it to this brief explanation.



The whole idea of countryside should dissapear. I don't see th ereason why should someone in the 21st century keep animals around the house??? Rather all those villages should grow into some sort of cities, with running water, gas, and roads..etc

you can't say that folks..cause the idea of country side is everywhere...but in much developed or less developed way...in Romania we should develop the country side more as Adi said we can't use these toilets anymore!!once i was near bicaz and i entered one of those..when i finished i looked to flush the water than i realize that they don't even have water:lol: ...we need to develop the telephone line sewage system and mentality of those people who are still living in 19century....

Well guys, I guess romanian guys are number 1 at something:

http://libertatea.ro/index.php?section=articole&screen=stire&sid=177390

Alpha Bank plans to reach 300 units

Alpha Bank Romania will open by the end of 2010 230 branches to increase the network to 300 units, said the group’s executive director, Demetrios Mantzounis. The group plans by 2010 to reach 870 units in South-East Europe. The retail loans granted by the bank total EUR 256 million, an 80 percent increase on the similar level of last year. The bank’s deposits total EUR 90 million within which 74 percent represents sources from retail sector. For 2010, the bank plans to increase the deposits to EUR 3.8 billion.
(23.04.2007)

Rewe Romania to open 20 stores in Bucharest and country side

Retail company Rewe Romania, the operator of Penny Market stores network, approved at the end of March the opening of 20 units in Bucharest, Alba-Iulia, Mangalia and Medias. Following the decision of the company’s sole associate, German group Rewe Holding International in the next months stores will be opened in Alba-Iulia, Moinesti, Drobeta Turnu-Severin, Catunele, Gheorgheni, Turda, Petrosani, Medias, Rasnov, Baia Mare, Carei, Lupeni, Navodari, Mangalia, Targu Secuiesc, Satu Mare, Sfantu Gheorghe, Hunedoara and Mioveni.

www.businessromania.com

LeasePlan to manage car fleets in Romania

Dutch company LeasePlan Corporation, one of the leading European companies in vehicle fleet management, is preparing to enter the Romanian market later this year.
"We intend to start operations during the course of this year. With Romania joining the European Union, the attractiveness of this market has increased. Also, there is growing demand from LeasePlan clients for us to provide services in Romania," Rogier Klop, development and corporate strategy manager at LeasePlan Corporation, said in an interview with ZF.
LeasePlan operates in 28 countries, manages 1.26 million vehicles worldwide and is held by a consortium including the Volkswagen Group (50%), the investment fund of the Abu Dhabi Emirate - the Mubadala Development Company (25%) and the Olayan Group from Saudi Arabia (25%). "We will enter the market with a greenfield investment because our services - operational leasing and fleet management - are new to the Romanian market and we are therefore unable to make any acquisitions on this segment," said Klop. He explained that the advantages of investing in Romania include the potential to expand the business on a market with many international investors and a strong growth rate.
"The disadvantages are that business risks are still high compared with other European markets due to legislation, taxes and the current political climate, as well as the lack of auxiliary services such as companies specialising in road side assistance, market research and car registration," added Klop.
The Dutch-held LeasePlan is not the only leasing company to have responded to the growth potential of the Romanian market. The leasing market is at present attractive witnessing an annual increase of over 45%.
Other strong international companies which have decided to expand their operations to Romania last year were KBC Lease, which bought Romstal Leasing in a transaction worth around 70 million euros at the end of 2006, and Fortis Lease, which entered the market by taking over a smaller leasing company - Global Finance & Leasing.

Romania: Michelin to increase tyre production

Michelin's Romanian subsidiary Zalau-based Michelin Silvania is planning to increase tyre production by 10% and double the volume of its semi-finished products exported to Eastern Europe this year, local newspaper Ziarul Financiar has reported.

www.zf.ro

Microchip opens design center in Romania:banana:

US Microchip Technology Inc., provider of microcontroller and analog semiconductors, announced it has inaugurated a design center in Bucharest, Romania.
The new center is part of Microchip's worldwide network of design centers, located in India, Switzerland, California and Arizona (United States). Its objective consists in playing a "pivotal role in enhancing Microchip's existing product portfolio, and in developing technologies that continue to set new benchmarks for price, performance and ease of integration," the company stated. Microchip said it has recruited 15 employees, with an intention to count 30 jobs by the end of 2008 and 100 jobs over the next four years.
"Bucharest was chosen as the location for Microchip's newest design centre because it takes us closer to our customers who are increasingly turning to Eastern Europe for design and manufacture," explained Rich Simoncic, vice president of Microchip's Analog and Interface Products Division, in a statement. "It is only by working closely with our customers that we can understand the challenges they face and ensure that we are developing the right products for them." (eetimes.com)

Tarom targets EUR 7 M profit in 2007
Company’s management is to be privatised by the end of 2008, but the company will remain state property.
TAROM will make a gross profit of around USD 7 M this year, compared to nearly USD 2 M in 2006, Rompres reports.

“The gross profit might grow to USD 7 M this year, which would be four times the profit last year,” Madalin Tudor, Spokesperson for the airlines stated. In 2005, the company made a profit of USD 1.1 M and USD 2 M in 2006. In 2007, TAROM estimates a growth by 5-7 per cent of its turnover, up to USD 296 M, compared to USD 290 M in 2006. TAROM officials also expect to fly more passengers this year. “In 2007 we estimate nearly 1.6 M passengers for both domestic and foreign flights. Compared to 2006 the estimated growth will be 15 to 20 per cent,” explained Madalin Tudor.

The 2007 estimate average load factor for both domestic and external flights will be around 67 per cent. TAROM management will be privatised by the end of 2008, but the company itself will remain in the state’s ownership, according to Minister of Transport Ludovic Orban.

The Romanian airlines currently have a fleet of 18 operational aircraft. The company intends to start flying to destinations such as Lisbon, Amsterdam and Valencia, while also looking at re-launching extra-European flights to former destinations such as New York (USA), Beijing (China) and Bangkok (Thailand).

TAROM operates flights, itself or in co-operation with other airlines, to the following foreign destinations: Vienna, Paris, Larnaca, Munich, Frankfurt, Rome, Milan, Budapest, London, Athens, Thessaloniki, Chisinau, Prague, Warsaw, Moscow, Istanbul, Amman, Beirut, Damascus, Tel Aviv, Cairo and Dubai. The majority of flights take off from the Henri Coanda Airport in Bucharest as well as from the airports of Constanta, Timisoara, Cluj and Sibiu. In keeping with the company redressing programme, TAROM intends to fly 1.8 million passengers in 2008, with an annual growth of over 15 per cent, whilst operational profit should stand at USD 9 M in 2008

Henri Coanda, Aurel Vlaicu airport merger approved
The decision becomes operational as of May 10.


The merger of Bucharest airports will become operational this May 10, as the shareholders in Henri Coanda and Aurel Vlaicu airports approved the merger project yesterday, Rompres reports. Minister of Transport Ludovic Orban stated that the merger can only benefit the two airports, with the new company to have a stronger position in the European airport market.

“Two airports in Bucharest should not be competing, a strategy must be put together which should take into account the development of the two airports,” Orban said. The Minister, jointly with officials for the two airports, emphasised that the new management team, to be appointed by May 10, will draw up a strategy paper for the development of the new company, and will also decide on a possible reorganisation of the flights on the two airports. The two entities subordinated to the company will have common policies in aeronautic safety, quality management, environment, health, commercial and advertising policies. After the set up of the Bucharest Airport Company, part of the shares will be listed with the stock exchange.

The new management team will also revise the market value of tracts of land included in the company assets. The equity of the Bucharest National Airport Company is currently put at RON 143.7 M. at present, the Romanian State through the Ministry of Transport, Construction and Tourism holds 80 per cent of the stock, with the balance held by “Proprietatea” Fund.

Due to the EU accession, airports in Romania will see an average 30 per cent increase in passenger numbers, which is why facilities need reorganising. The Henri Coanda Airport in Otopeni has reported increased traffic figures since 2000. In 2004, some 2.4 million passengers transited the Henri Coanda Airport, and approx. 3.5 million in 2006 (an over 15 per cent increase). For 2007, the airport management expects traffic of approx. 4.5 million passengers. Officials for the Aurel Vlaicu Airport in Baneasa estimate approx. one million passengers this year, about 35 per cent more than in 2006 (700,000 passengers).

First registration tax brings nearly EUR 10 M to Bucharest’s budget

Bucharest - Revenues from the first registration tax cashed in by the Bucharest municipality amounted to RON 32.416 M (EUR 9.726 M) in the first quarter of this year, equivalent to 35 per cent of country-wide revenues, announces Rompres, quoting data provided by the Bucharest General Directorate for Public Finance (DGFP).

According to the Ministry of Economy and Finance, the first registration tax brought to the state budget revenues of approximately RON 91.21 M (EUR 27 M), considering that the ministry envisaged tax revenues of over EUR 20 M monthly.

However, European Commission representatives have recently notified Romania on the start of infringement procedures against it (violation of the EU Treaty), after the Government was informed at the beginning of this year that the tax came against EU provisions.

So far, Romanian authorities haven’t modified in any way the tax, which is regarded as discriminatory by the EU. The quota of the first registration tax, in effect since January 1, 2007, ranges from EUR 160 to over 8,500, function of the vehicle’s age, pollution level and engine displacement. Should the first registration tax prove illegal, the Romanian state might be forced to refund the collected money and modify the Fiscal Code.

The European Commission has started infringement procedures before on this issue, namely against Poland, Greece, Netherlands, Finland, Hungary, Cyprus and Denmark. Hungary was sentenced by the European Court of Justice and forced to refund automotive taxes, deeming them incongruent with the European acqu

EXTENSION AND MODERNIZATION OF KOGALNICEANU AIRPORT (CONSTANTA) - 1bn EURO

http://www.zf.ro/articol_119836/replica__extinderea_aeroportului_kogalniceanu_va_costa_un_miliard_de_euro_.html

http://www.zf.ro/articol_121638/replica__americanii_arunca_in_aer_piata_imobiliara_din_kogalniceanu_.html

^^ This is what Constanta needs – to become regional leader in containers and cargo transit at black sea ; biggest sea/air hub for EE and WE goods:banana: :cheers:

Yap ! No doubt, we will become soon exactly what you said !

Waw, again ! I`m actually reading other good news following your idea !

65M EURO for a NEW TERMINAL in PORT OF CONSTANTA

Capacity: 700.000 TEU

http://www.zf.ro/articol_121046/investitie_de_65_mil__euro_pentru_un_terminal_de_containere_in_portul_constanta_.html

------------------------------

FINANCIAL TIMES REPORT : ROMANIA 2007

http://www.ft.com/reports/romania2007

* Mazare spargandu-se in figuri bineinteles http://search.ft.com/ftArticle?queryText=cuget+liber&aje=true&id=070302000720

Ford and GM make non-binding offers for Automobile Craiova

published in issue 3919 page 9 at 2007-04-25

AVAS will begin negotiations for the privatisation of Automobile Craiova in June or July, having received non-binding offers from Ford and General Motors so far, government sources have stated, quoted by Mediafax.

The State Asset Resolution Authority (AVAS), the main shareholder in Automobile Craiova, has announced its intention to sell 72.4 per cent of the stock, awaiting non-binding letters of intent from interested buyers no later than April 25. According to the cited sources, in the next period, the task book will be prepared and a privatisation announcement will be published for the submission of binding offers. Investors will have 45 to 60 days of the publication of the call to send their bid. Negotiations are expected to begin in June or July, according to the deadline to be given to investors. The price offered will represent 30 per cent of the scoring grid and the investment the bidder promises to make will count 25 per cent. The potential investors must have an individual turnover of minimum EUR 10 bln and a production of at least 1M cars per year in order to be accepted.

WirTek and ISDC to hire around 800 people in Cluj

Software producer WirTek and software & services producer ISDC say that they intend to hire approximately 800 further staff within the next three years for their centres in Cluj, with each of the two companies planning to end 2010 with around 500 employees.
For this year, Danish company WirTek, a software supplier for mobile phones, says that it intends to double the number of employees at its Romanian office from a staff of 35 to 70.
"Double growth is our minimum target, although we may see an even bigger increase. We do not want to get an influx of hundreds of people at once, but want to expand gradually, so that everyone in our team gains the necessary skills," Dan Koblicska, human resource manager at WirTek Romania, said in an interview with ZF Transilvania. The Danish company plans for its Romanian branch to have 500 employees by the end of 2010.

WirTek was launched on the Romanian market in June last year, when it acquired Codewizards, a small company based in Cluj. WirTek currently owns three centres, two in Denmark and one in Romania, but, according to company officials, a new centre is planned to open in Germany by the end of this year. WirTek management expects its Cluj-based office to become a production and development centre.
Representatives of ISDC, a provider of services for the IT industry, have stated their intention of reaching a total of 500 employees by 2010.
Around 450 of the recruited staff will be employed in Romania, with the remainder being employed in Holland. The Cluj-based company currently employs 120 people, but according to the company management, the number of employees could reach a total of 180 people by the end of this year.
"I don't think we will have trouble finding adequate employees, although in our field there is currently pressure on the labour market. However, we think young people looking for employment have a greater interest in companies offering a professional development plan, rather than those merely offering short term financial advantages," Marcel Anghel, manager of ISDC Romania, told ZF Transilvania.

Baumit: We are building three factories from scratch

Construction materials producer Baumit Romania, the local branch of the international group Baumit Wopfinger will start an over 10 million-euro investment in a new production facility in the South of Bucharest, near the ring road, writes the monthly Business Construct, which appeared today, and is distributed free of charge as a supplement to Ziarul Financiar. This decision is a part of the company's medium term strategy, to invest over 30 million euros in greenfield production facilities in Bucharest, Banat and Moldova. "Baumit investment in greenfield projects will exceed the 30 million euros announced two years ago. Confidence in the Romanian market has gone up, the doubts which were there five years ago do not exist anymore, because Romania joined the European Union, and the investors have changed their perception about this market, which is continuously expanding," stated Laurentiu Lupusor, general manager of Baumit Romania. If works for the plant in Bucharest are completed next year, the plants in Moldova and Banat will be completed within the next five years. The plant in the South of the Capital will have a production capacity of 200,000 tonnes, in two shifts, similar to that of the plant owned as early as 2006 in Teius. The investment made in Bucharest will be bigger than that made in Teius, i.e. of over 10 million euros, as this will be a more extensive project, which will also include a new factory of wet finishings - decorative plaster and dyes - and the company's new office headquarters, covering 1,000 square metres.
www.zf.ro

NATO agrees to hold next summit in Romania
The Associated Press

OSLO, Norway: NATO will hold its next summit in Bucharest, Romania, in the spring of 2008, alliance Secretary General Jaap de Hoop Scheffer said Friday.
The decision was taken at a meeting of NATO foreign ministers. The Romanian capital had been competing with Lisbon, Portugal, to host the gathering of allied leaders.
The summit is expected to invite three Balkan nations — Albania, Macedonia and Croatia — to join the alliance, the first expansion since Romania joined along with six other countries in 2004.


Moody's modifies ratings for three Romanian Banks

Moody's Investors Service modified on Tuesday the ratings for three Romanian banks - BCR (the Romanian Commercial Bank), Raiffeisen Bank and BCC (Carpatica Commercial Bank) - as a result of the changes in the financial evaluation methodology.
Banca Comerciala Romana S.A. - The BFSR has been changed to D from D-. Global Local Currency Deposit Ratings of Baa1/Prime-2 have been assigned. The Foreign Currency Deposit Ratings remain unchanged at Baa3/Prime-3, and are constrained by the country ceiling. All ratings carry a stable outlook.
Raiffeisen Bank S.A. - The BFSR has been changed to D from D-. Global Local Currency Deposit Ratings of A3/Prime-1 have been assigned. The Foreign Currency Deposit Ratings remain unchanged at Baa3/Prime-3, and are constrained by the country ceiling. All ratings carry a stable outlook.
Banca Comerciala Carpatica S.A. - The BFSR has been changed to D- from E+. Global Local Currency Deposit Ratings of Ba3/Not-Prime have been assigned. The Foreign Currency Deposit Ratings have been changed to Ba3/Not-Prime from B2/Not-Prime. All ratings carry a stable outlook.

http://english.hotnews.ro

Africa Israel to build 4,500 apartments

Africa Israel has purchased EUR 70 million worth of Romanian land and is planning a countrywide expansion with new shopping malls. Moreover, the company will build 4,500 apartments, a hotel and maybe dive into the industrial market, says Reuven Havar, chief executive officer of Cotroceni Park. He talks to Business Review about the state of the shopping center market and about his company’s development plans.

more on - http://www.businessromania.ro/index.php?x=read

Guys' I'd think you should check this out:
http://www.romaniareport.com/America...velopments.php
Does anyone know anything about this? If you download their PDF presentation at http://www.romaniareport.com/America...ation-form.pdf it's really quite impressive! I appologize that I couldn't take the time to extract more info or put some pictures on the page, but if anyone thinks that this project is the real deal and has a few spare minutes, then you are welcome to elaborate on it! Thanks...:)

It seems that Trump will invest in Romania, after all ...maybe some decent skyscrapers?!!?!?

Donald Trump to invest EUR 1 bln in Romania
Donald Trump wants to invest in Romania. The businessman will invest around EUR one bln in Romania, according to Antena 3 tv channel. The American tycoon will sign a protocol of collaboration with the Chamber of Real Estate Trade and the Association of Real Estate Investors. If everything goes on according to his plans, in the next five years we shall announce Trump office spaces and Trump residential complexes, maybe even Trump hotels.

It is only known that the American wants to call all the projects by his own name. Everybody knows about Donald Trump that he has already built a real estate empire. Trump Organisation is the biggest player on the market of hotel operators. Through this company, Trump manages luxury hotels such as Trump Palace, Trump International Hotel, Seven Springs Mansion, or Plaza Hotel.
His business boomed when he built several skyscrapers in Manhattan, which he called by his own name. Prior to that moment, Trump made money from any property. First, he turned his holiday houses into profitable affairs. “Forbes” magazine estimates Donald Trump’s wealth at USD 2.5 bln, rating him 71 in the top richest people in the world. But Trump thinks high, saying that actually his wealth exceeds USD six bln.

www.nineoclock.ro

It's an old one. There was an extensive report on BizBazar at Antena 3 about two-three weeks ago, including interviews with his representatives in Romania (the guy was Romanian). Basically he wants to take over Esplanada but he wants to own the land, no public-private partnership with the city. Other than that, he's interested in the land beneath the Aversa factory and relocating said factory outside the city.

That's about it.

Litoralul românesc contraataca


La hotelurile de patru stele, pentru un sejur de trei zile, tarifele sunt de 45 euro pentru România faţă de 50 de euro pentru Bulgaria
După experienţa neprofitabilă de Paşte, hotelierii români de pe litoral au ieşit pe piaţă cu oferte combative cu cele ale bulgarilor în ceea ce priveşte tarifele, pentru minivacanţa de 1 Mai. În hoteluri de trei şi patru stele din Mamaia de exemplu, locul în camera dublă pentru o noapte a coborât până la 18, respectiv 22 de euro de persoană.

Tarifele avantajoase, corelate cu decizia guvernului de a acorda liber şi pentru luni, 30 aprilie, a condus la dublarea numărului turiştilor în hotelurile de pe litoral faţă de perioada similară a anului trecut. "Odată cu declararea zilei de 30 aprilie drept nelucrătoare şi a anunţului privind inaugurarea altor kilometri din Autostrada Soarelui, cererea a crescut foarte mult. Am vândut toate biletele disponibile, astfel încât în Mamaia am cerut deschiderea de noi hoteluri", ne-a declarat Dragoş Răducanu, manager la agenţia Magest Travel. Astfel încât au fost deschise alte patru hoteluri în Mamaia, staţiunea cea mai solicitată de către turişti.

Cererea s-a dublat faţă de anul trecut

"Cererea este dublă pentru pachetele de 1 mai faţă de anul trecut, fiind solicitate în special hotelurile de trei şi patru stele. Există prea puţine hoteluri de această clasificare, în special în Mamaia", spune, la rândul ei, Lucia Morariu, preşedinta agenţiei Eximtour. Aceasta susţine că "vacanţele în Bulgaria, în hoteluri comparative, nu sunt mai ieftine decât în România". Potrivit unui studiu realizat de Eximtur, un pachet de trei nopţi la un hotel de trei stele în Bulgaria, cu mic dejun inclus, costă 50 de euro, pe când la o unitate similară din România tariful pentru trei nopţi şi micul dejun este de 41 de euro/persoană.

Pentru hotelurile de patru stele, tarifele sunt, pentru un pachet de trei nopţi cazare şi mic dejun inclus, de 45 de euro pentru România şi de 50 de euro pentru Bulgaria. Oricum, operatorii spun că agenţiile au vândut, pentru 1 Mai, circa 10.000 de biletele pentru litoralul nostru şi tot atâtea pentru cel bulgăresc. Lucia Morariu explică şi de ce bulgarii au tarife mai mici în perioadele de capete de sezon. "Au multe unităţi de 3 şi 4 stele cu servicii all inclusive, care au asigurat un grad de ocupare o perioadă mai lungă, din aprilie până în septembrie, datorită ocupării cu turişti străini care călătoresc cu avioane charter". Per ansamblu însă, de 1 Mai sunt aşteptaţi să petreacă în staţiunile româneşti de la malul Mării Negre circa 15.000 de turişti, din care peste 5.000 vor fi numai în Mamaia, potrivit lui Daniel Vasilescu, preşedintele Federaţiei Patronale a Turismului (FPTR).

30 Aprilie 2007

Bucureştiul, o capitală metropolitană. Proiectul marelui oraş s-a născut în 1998, dar a fost trecut pe un plan secund, a reapărut în 2002, a stârnit controverse prin 2005 şi are toate şansele să fie definitivat în 2007. A treia variantă a proiectului de lege privind Zona Metropolitană se rezumă în prima fază doar la Bucureşti şi Judeţul Ilfov.

Ideea de transformare a Bucureştiului într-o metropolă a aparţinut lui Vasile Gherasim, fost primar al Sectorului 1, acum consilier al primarului general, Adriean Videanu, pe probleme de dezvoltare urbană. Prima discuţie pe tema proiectului marelui oraş a avut loc în 1998. Totul a fost abandonat până în 2002 când Zona Metropolitană (ZM) trebuia să înghită 62 de localităţi. Deşi pus pe hârtie de Gherasim, proiectul a fost revendicat şi de liderii PNL, chiar propus de aceştia analizei comisiilor din Parlament. După puţină vâlvă, a trecut din nou într-un con de umbră. După aproape cinci ani, Zona Metropolitană este abordată din nou, la iniţiativa primarului general, Adriean Videanu, subiectul fiind elaborat tot de Vasile Gherasim. Ajuns la a treia variantă, proiectul este structurat în trei părţi pentru a evita conflictele politice şi a mai diminua din orgolii.

În prima fază, din Zona Metropolitană va face parte Bucureştiul şi Judeţul Ilfov compus din 33 de comune şi şapte oraşe, sub denumirile de Centrul Metropolitan Bucureşti şi Zona Premetropolitană. Metropola va avea un Consiliului de Administraţie, un guvernator şi un city manager.

CRITERII. Consiliul de Administraţie va fi format din consilieri ai Capitalei, ai oraşelor şi comunelor din Ilfov desemnaţi după anumite criterii. Astfel, Consiliul General al Capitalei şi cel al Judeţului Ilfov vor avea fiecare câte şapte reprezentanţi, celelalte localităţi îşi vor delega reprezentanţi în funcţie de numărul consilierilor existenţi în prezent. De exemplu, o comună care are acum între 9-15 aleşi locali va avea în Consiliu Zonei Metropolitane un reprezentant, între 7-21 – doi consilieri şi între 25-27 – câte trei.

Astfel, Bucureştiul va fi reprezentat de 25 de consilieri, punându-i la socoteală şi pe cei de la sectoare. Mandatul lor va fi pe o perioadă de patru ani, preşedintele fiind ales doar pentru doi ani. Tot ceea ce ţine de modul de administrare al Zonei Metropolitane va fi decis de acest consiliu.

"Consiliul General al Zonei Metropolitane va lua decizii în ceea ce priveşte cheltuirea fondurilor structurale, extinderea transportului în comun, modernizarea sistemului de învăţământ. Practic, transportul rutier şi cel de cale ferată va trebui să facă legătura între Sud-Nord, Est-Vest. Spre exemplu, metroul uşor, de suprafaţă ar putea să plece din Bucureşti şi să ajungă în Snagov", a spus Gherasim.

O altă funcţie nou înfiinţată este cea de guvernator, reprezentat al Executivului la nivelul ZM. Va avea rang de secretar de stat, activitatea lui desfăşurându-se în cadrul Ministerului de Interne, coordonându-i pe cei doi prefecţi ai Capitalei şi Ilfov. Va fi echivalentul unui ministru de externe al Zonei Metropolitane. Nu va lipsi din această combinaţie nici city managerul, funcţie care este deja prevăzută în legislaţia în vigoare. Va fi un înalt funcţionar public şi va administra practic banii de care dispune metropola. Şi vor fi din belşug, zona dispunând de fonduri externe şi guvernamentale.

BULETIN DE BUCUREŞTI. A doua etapă a acestui proiect de lege este atragerea în cadrul Zonei Metropolitane a celor 62 localităţi învecinate. Acest lucru va putea fi posibil pe baza unui precontract între Consiliul de Administraţiei al ZM şi comuna sau oraşul în cauză.

"Localităţile vor fi alese pe baza unor criterii de selecţie, cum ar fi distanţa dintre centrul Capitalei şi localităţile implicate, fiind de maximum 40 de km, construcţiile noi, locuite de bucureşteni, numărul oamenilor care fac naveta. Se merge pe zone mari, centrul urban este centrul de prosperitate, întotdeauna s-a trăit mai bine la oraş decât la ţară", a spus Gherasim. Partea finală a acestui proiect se referă la extinderea Zonei Metropolitane până la Olteniţa, deschiderea Bucureştiul la Dunăre fiind unul din scopuri.


DECIZII
"Consiliul General al Zonei Metropolitane va lua decizii în ceea ce priveşte cheltuirea fondurilor structurale, extinderea transportului în comun, modernizarea sistemului de învăţământ. Practic, transportul rutier şi cel de cale ferată vor trebui să facă legătura între Sud-Nord, Est-Vest. Spre exemplu, metroul de suprafaţă ar putea să plece din Bucureşti şi să ajungă în Snagov"
Vasile Gherasim
coordonatorul proiectului

http://www.jurnalul.ro/articol_78098/bucure__351_tiul___351_i_ilfovul_devin_metropol__259_.html

România şi Bulgaria sunt, de la 1 mai, în plin război pentru turişti, relatează Le Petit Journal. În timp ce studenţii rămân fideli litoralului românesc, românii trecuţi de 30 de ani se îndreaptă din ce în ce mai mult către plajele din Bulgaria, notează publicaţia de limbă franceză.

Le Petit Journal arată că trei nopţi de cazare într-un hotel de trei stele la Nisipurile de Aur costă în jur de 95. Pentru trei zile, dar fără servicii incluse, în România se plăteşte mai mult, remarcă acelaşi cotidian.

Plajele sunt în Bulgaria mult mai curate decât în România, iar majoritatea oferetelor turistice sunt all-inclusive, admite şi purtătorul de cuvânt al ANT, Traian Bădulescu, citat de aceeaşi publicaţie.

Cererea pentru vacanţe pe litoral românesc s-a dublat faţă de anul trecut. Pentru litoral bulgăresc a crescut însă cu 70%, notează Le Petit Journal.

România şi Bulgaria sunt, de la 1 mai, în plin război pentru turişti, relatează Le Petit Journal. În timp ce studenţii rămân fideli litoralului românesc, românii trecuţi de 30 de ani se îndreaptă din ce în ce mai mult către plajele din Bulgaria, notează publicaţia de limbă franceză.

Le Petit Journal arată că trei nopţi de cazare într-un hotel de trei stele la Nisipurile de Aur costă în jur de 95. Pentru trei zile, dar fără servicii incluse, în România se plăteşte mai mult, remarcă acelaşi cotidian.

Plajele sunt în Bulgaria mult mai curate decât în România, iar majoritatea oferetelor turistice sunt all-inclusive, admite şi purtătorul de cuvânt al ANT, Traian Bădulescu, citat de aceeaşi publicaţie.

Cererea pentru vacanţe pe litoral românesc s-a dublat faţă de anul trecut. Pentru litoral bulgăresc a crescut însă cu 70%, notează Le Petit Journal.

Terenurile din jurul autostrăzilor sunt foarte căutate de investitori. Fabricile, nevoite să îşi mute activitatea în afara Capitalei pentru a se supune normelor europene de mediu, se orientează prioritar spre astfel de tereuri. Şi companiile cu mulţi angajaţi se mută în afara oraşului în parcuri de afaceri. Potrivit companiei Richard Ellis, cererea tot mai mari a făcut ca preţurile terenurilor să crească în ultimii doi ani cu până la 50%.

Amplasarea unui centru comercial sau a unor spaţii de depozitare în apropierea Autostrăzii Bucureşti-Piteşti este o afacere care atrage tot mai mulţi investitori. Din ce în ce mai multe companii încep să cumpere terenurile din această zonă, susţin şi analistii companiei imobiliare DTZ Echinox. Preţul unui metru pătrat variază între 10 şi 80 de euro în funcţie de apropierea de Capitală.

Terenurile din vecinătatea autostrăzilor atrag şi companiile care au nevoie să trimită rapid marfă în orice punct al ţării. Apropierea de o autostradă îi atrage şi pe patronii de restaurante, fast-food-uri, benzinării, service-uri auto, moteluri sau pensiuni, potrivit consultanţilor DTZ.

Analiştii imobiliari mai spun că pe terenurile din apropierea autostrazilor se mai ridică hale de mari dimensiuni pentru depozitare. Cele mai multe spaţii industriale se găsesc pe autostrada Bucureşti-Piteşti.

Odată cu terminarea lucrărilor la Autostrada Soarelui însă, investitorii se vor orienta şi spre această zonă. În prezent, un metru pătrat în apropierea Autostrăzii Soarelui costă între 5 şi 60 de euro.

@ all

Ar fi intersant de postat stirile in En pt ca noi romanii stim deja stirile ...

RON reaches new historic highs


BUCHAREST – Romania’s national tender, the RON, reached Thursday a new high of the past four and a half years against the euro, of 3.3104 units, and a last six and a half years high of 2.4314 units against the USD. The National Bank of Romania (BNR) announced for Thursday a official exchange rate lower by two bans compared to the previous day, of RON 3.3104/euro, a record level of the RON from October 31, 2002, when it stood at 3.3085 units The central bank posted a RON/USD exchange rate of RON 2.4314/dollar, quite close to the RON 2.4264/dollar of October 4, 2000. On the international markets, the dollar slightly appreciated against the euro, following Wednesday’s slump, around 1,3620 units. On the local currency market, the EUR/RON quotation even fell under 3.31 units, to a low f RON 3.3060/EUR, due to investors’ high demand for RON, caused by the high interest on the monetary market. Interest to one-day and one-week due-days reached a level of up to 30 per cent during the session, as some of the banks don’t have enough liquidity to make the payments from customer accounts and into the state budget. The currency session opened at RON 3.33230-3.3260/EUR, and the rate continued falling all throughout the trading, amid aggressive hard currency sell orders. The last time that dealers traded the EUR at so low a level was in October 2002.


Bucharest to host 2008 NATO Summit

NATO Secretary General Jaap de Hoop Scheffer has formally announced that the capital of Romania, Bucharest, will host the 2008 Summit meeting of NATO Heads of State and Government.
Mr. De Hoop Scheffer made the announcement on the second day of the informal meeting of NATO Foreign Ministers in Oslo, 27 April.

NATO summit meetings provide periodic opportunities for Heads of State and Government of member countries to evaluate and provide strategic direction for Alliance activities.

The last Summit was held in Riga, the capital of Latvia, in November 2006.
Source: NATO


Ford, General Motors and JC Russian Machines bid for Automobile Craiova

Bucharest – American carmakers Ford and General Motors and Russian company JC submitted to the Authority for State Asset Resolution (AVAS) non-binding tenders for the privatisation of Automobile Craiova, by the bidding deadline on Wednesday, Finance Ministry informs. The JC Russian Machines company is a division of the Russian group Basic Element, controlled by Oleg Deripaska, one of the richest men in the world - ranking 62nd in the Forbes list - crowned Russia’s “aluminum king”.

The Automobile Craiova privatisation strategy stipulates the sale of the entire stake held by AVAS (72.4 per cent) along with the stakes held by SIF Oltenia (22.06 per cent) and by other minor shareholders having expressed their intention to sell out, under a memorandum passed by the Government Wednesday.

In the Cabinet meeting on Wednesday, AVAS President Teodor Atanasiu announced Cabinet members that an invitation to tender will be launched in June. Stock will be sold through negotiation based on final, improved and binding tenders, in two stages, with an initial tender with common terms of all bidders, followed by the improved final tender. Next week, the Commission assigned with privatising Automobile Craiova will set a timetable regarding the transfer into private property of the company’s majority share package, a process which is to be finalized this year, Sebastian Vladescu, head of the commission, told Mediafax on Thursday. “We will meet next week to decide on an agenda and a privatisation method. (…) The privatisation process will be finalised by the end of this year,” declared Vladescu, State Secretary with the Ministry of Economy and Finance.

The investor will have to ensure an output of min. 100,000 automobile in Craiova after the first two years since privatisation, and 200,000 units after the first four years.

Ford mission in Craiova

A delegation of specialists and technical experts headed by the Ford European division’s Director for Business Strategy Lyle Watters is in Craiova these days for a complete and detailed evaluation of the Daewoo plant.

The leader of the Rodae Free Union Ovidiu Cioroianu stated that a mission of over 20 experts of the American carmaker has been in Daewoo Craiova for two days.

“A Ford mission, made by of experts for various operations, is visiting Daewoo Craiova. They have been here since Tuesday. This is a technical visit,” leader of the Rodae union stated Thursday.

According to Cioroianu, the Ford mission is headed by the Director for Business Strategy of the company’s European division, Lyle Watters.


Prisma Complex could be purchased by Hornbach

The Prisma Complex, which is undergoing judicial liquidation, is to be sold for a minimum of EUR 20 M to the Hornbach Company, daily ‘Cotidianul’ quoted anonymous sources familiar with the market as saying. Prisma Town is undergoing judicial liquidation, given the high level of debts owed mostly to Groupe Societe Generale. The creditors called for Prisma Town to be declared bankrupt so that they could recoup their money.

According to the Trade Registry, the main stockholders in Prisma Corbeanca are Romanian businessman Cristian Alexandru Tintareanu, 10.5 per cent, Florida Shipping Lines Ltd (Delaware, USA), 18.9 per cent, Mac Investments Incorporation (Delaware, USA), with 22.8 per cent, Industrialexport SA (Bucharest), 30 per cent.

German company Hornbach owns over 120 stores in Europe and has a work force of 12,000 people. In the financial year 2005-2006, Hornbach posted a turnover of EUR 2.36 bln.


EUR 120 M turnover for Nestle Romania in 2006

Nestle Romania’s turnover increased last year by around 50 per cent to EUR 120 M, as 2006 results also included sales owing to Delta Romania, purchased in May 2006 and re-branded into Nestle Ice-Cream. In 2005, the company reported a EUR 80 M turnover. In this year’s first quarter, company sales recorded a more than 40 per cent increase, without taking into account results of the pet food division and those of Nestle Ice-Cream Romania, reads a company communiqué. “In the first three months of this year we recorded a solid growth, between 12 per cent and 72 per cent, for all categories and divisions, as well as in all regions. We have so far exceeded our goals and registered improvements in margins,” declared Paul Nuber, General Manager of Nestle Romania.


Cefin sold A1 Industrial Park to Teesland

British investment fund Teesland iOG will invest some EUR 70 M in logistics projects in Romania in the coming 12 months, after having acquired from Cefin Real Estate the A1 Industrial Park in a EUR 70 M transaction. “We intend to carry on investments together with Cefin. We will continue to invest in logistic projects, in Bucharest and other major Romanian cities, such as Constanta or Iasi. In the coming 12 months we will invest in industrial projects the same amount we have paid for A1,” says Matthew Bann, Teesland iOG executive for Central Europe. The A1 industrial park is located on the Bucharest – Pitesti motorway (km 13) and will span 80,000 sq m, of which 54,000 sq m storage space, 17,000 sq m office space and 9,000 shopping space. In a first stage, 30,000 sq m will be developed, with the project scheduled to finalise in 2009.


Transylvania motorway construction speed up

The volume of works carried out in the first four months of 2007 in the Transylvania Motorway project rose by 75 per cent as compared to the initial schedule, and excavation last week reached a record level of over 20,000 cubic metres a day, Bechtel officials announced. According to a news release issued by the American company Thursday, over 2,500 people are currently working for the Transylvania Motorway, and the number is scheduled to reach 3,000 in June.


Strike at Daewoo Mangalia

CONSTANTA - Around 2,000 workers from the Daewoo Mangalia Heavy Industries Naval Yard went on a two-hour warning strike early on Thursday, to protest against the management’s refusal to increase wages.

Marin Florian, “Navalistul” Free Union leader, claims that Daewoo employees demanded a RON 400 wage increase as of April 1, with an extra RON 200 starting from July 1, but the management agreed only to a combined increase of RON 145.

On Wednesday, the naval yard’s management submitted a petition to the Constanta Tribunal, requesting that the warning strike be declared illegal. According to “Navalistul” Free Union leader, Marin Florian, the Constanta Tribunal determined that the employees’ initiative was lawful. “The company’s administration offer is not satisfactory and our first reaction will be to go on a warning strike. Through this protest, we are trying yet again to draw attention on labour issues within the naval platform”, declared Marin Florian.

He claims that, if the management of the Daewoo naval yard does not heed the workers’ demands, this may lead to a general strike, which would cause huge financial losses to the company, due to the halt of the work process. The general strike could begin on May 3.

Unionists also demanded severance payments in case they are collectively laid off and externalized, ranging from EUR 1,000 for those with less than 5 years seniority and EUR 7,500 for those exceeding 20 years seniority. According to “Navalistul” Free Union leader, Marin Florian, the union is willing to drop the demands concerning severance payments provided that the management guarantees they wouldn’t lose their jobs (including an obligation not to make any externalizations) throughout the contract’s period.

The Romanian Government decided to change the first registration tax on vehicles so that it may answer the remarks that the European Commission made to the Romanian authorities, Economy and Finance Minister Varujan Vosganian announced.

The minister said the tax will be calculated by the vehicle's pollution degree, rather than by its age. The Executive, therefore, will ask that Ordinance no. 110 on the special tax, currently debated by the Chamber of Deputies, be returned to the specialised commission that will introduce the changes proposed by the Government. Vosganian explained that the vehicle's age scale has been increased to 15 years up from 6. The authorities also plan to cut the tax, so that it may be reduced as the car gets older.

The European Commission had drawn attention that the tax level for the second-hand vehicles is extremely high compared to the car's residual value. It had also asked the Romanian authorities that the car's depreciation be reflected by the tax cut rate as accurately as possible.

On the Commission's remark referring the discriminatory treatment of the Romanian-produced and registered cars and the imported vehicles, the Government will take into account Romania's right to set its own taxation system. 'All cars - those made in Romania, as well as the new imported ones and the second-hand ones - are subject to this registration procedure.

There is the first registration tax worth some 154 euros for the new Romanian-made cars, while for the imported vehicles there are different taxes depending on the number of cylinders and age', the minister explained, adding that the issue of the discriminatory treatment is debatable.

Vosganian stressed the discrimination is eliminated by the fact that the tax is calculated according to the car's pollution rate. While the alterations proposed by the Romanian Executive have yet to be agreed upon by the EU experts, such proposed modifications meet the European Commission's remarks, he said. The first registration tax is null for the Euro-5 polluting vehicles, Vosganian said.

Serbia canceled a US$400 million (€293 million) contract with Cuprom Romania on Wednesday, saying the company had failed to submit financial guarantees for buying the Balkan republic's copper giant.

Cuprom Romania failed to meet a deadline to secure a financial arrangement to buy the Rudarsko Topionicarski Basen Bor, the vast but decrepit mining and processing complex in eastern Serbia, the government's Privatization Agency said. There was no immediate comment from Cuprom.

The announcement came after difficulties emerged recently in the nearly finalized deal by which Cuprom Romania, one of Europe's biggest makers of copper products, was to buy the mines and a smelter of RTB Bor. Last week, Cuprom Romania signaled it might withdraw from the deal, citing "considerably changed circumstances" and an alleged opposition from the unions.

In March, the company won the bid to buy RTB Bor by making the highest offer and pledging multimillion-dollar investments to solve the company's environmental and production problems. RTB Bor's production of copper was reduced from 170,000 tons a year in the 1970s, to 40,000 tons per year after 2000. The government is now expected to renew its offer to sell RTB Bor.

The hard-discount outlet network Profi, which is owned by the Belgium group Louis Delhaize, which also controls the Cora hypermarket chain, will enter onto the Bucharest market by acquiring the nine Albinuta supermarkets owned by the Lithuanian retailer Maxima Lt. Albinuta Shops registered a turnover worth 23m euros last year, an increase of 30% on 2005.

Lithuanian retailer Maxima Lt opened its first outlet in Romania in 2005 and by 2007 had reached a network of 9 supermarkets in Bucharest, with more than 350 employees.

Economist Intelligence Unit : The 2007 e-readiness ranking
ROMANIA advanced 4 positions this year


http://graphics.eiu.com/files/ad_pdfs/2007Ereadiness_Ranking_WP.pdf

... Those countries where tangible commitment has been expressed in terms of national infrastructure initiatives and clear stimulus programmes—including Chile (30th) and ROMANIA (45th)—made visible gains in scores and ranks. Those where government commitment is not as strong—for example, Indonesia (67th), Brazil (43rd) or Russia (57th)—saw their places in the rankings slide, although their absolute scores did not.

Government policy and vision: Top scores by region
East&Central Europe

1. Estonia 6.25
2. Slovenia 5.76
3. Romania 5.60


Resourceful businesses in many countries have also found ways of using ICT to create new service models, reaping significant benefits for hemselves and their economies. India provides the most famous examples, with its IT-outsourcing and now “knowledge-process” outsourcing industries dependent on advanced networks to deliver services. Romania, Bulgaria, Brazil, the Philippines, Vietnam and other developing countries are similarly building outsourcing sectors that generate tangible economic benefits

10 000 Romanians Flock to Bulgaria's Seaside during Weekend

More than 10 000 Romanian tourists flocked at Bulgaria's seaside to spend the weekend and the next two non-working days at the coast of the Black Sea, Darik News reported.

While Romanians come to Bulgaria to spend the long weekend days, more than a half of the hotels at the Romanian Black Sea coast remain closed.

Since 1990 the Romanians see May 1, the International Labour Day, as the start of the summer season, but the Romanian hotel owners still open their hotels at the beginning of June.

The mass invasion of the Bulgarian coastal resorts by the Romanians started in 2005 and experts expect it will reach its visitors peak this year.

The first Romanian tourists that arrived in the Albena resort said they were happy to go as the price is much lower in Bulgaria for a three-day stay in a four stars hotel.

Improvement of the operational capacities of the Container Terminal on Pier II S

Friday, 30 March 2007

The Port of Constantza proves to be more and more a regional distribution center – a hub for the Black Sea area. The advantage resulting from its geo-strategical position is completed by the modern facilities and services of high quality offered for container handling within the port.

The project of the new Container Terminal on Pier II S is a part of the development strategy of Constantza port, which transforms itself into a modern port reaching the standards of the European ports with the best performances.

The purpose of this project has been the extension of the facilities for container handling in the south area of Constantza port, as a consequence of the forseen traffic growth and also having in view the fract that the container traffic was reaching the maximum capacity of the existing terminals in the Port of Constantza.

The construction of the Container Terminal on Pier II S was organized in three stages of development: Stage I (finalized) with a handling capacity of 325,000 TEU’s, Stage II with a handling capacity of 450.000 TEU’s, predicted to be operational after 2009 and Stage III with an handling capacity between 800,000 and 1,000,000 TEU’s, for the period of time 2014-2015.

Although the handling activity of the Container Terminal has started in April 2004, because of the rapid traffic growth and the good commercial management of the terminal operator, the maximum capacity for the first stage of development was excedeed at the end of year 2005.

The considerable growth of container traffic recorded in the last period, especially at the new Container Terminal on Pier II S (which in present handles around 80% of the total container traffic in Constantza port), has imposed by 8 years in advance, the starting of the second development stage, to a capacity of 450,000 TEU’s.

Recently the MPA and Constantza South Container Terminal (CSCT), the terminal operator, have signed an additional act of the rental contract, regarding the improvement of the handling capacity of the container terminal to 1 million TEU’s.

The operator will extend the present handling capacity, developing the second and third remaining stages.
The operator will extend the terminal capacities, first by enlarging the storage area by 3,400 prints and a supplementary number of quay cranes, rubber-tyred cranes, terminal tractors, chassis, pilers.

Take a look :

http://www.mt.ro/autostrazi2007-2013/Evolutie%20autostrazi%202007%20_%202013_inserare_tabele.pdf

^^ take a look - http://www.skyscrapercity.com/showpost.php?p=12196287&postcount=419

Transport news tread - http://www.skyscrapercity.com/showthread.php?t=290879

http://www.zf.ro/zf_english.html

Construction continues explosive growth, retail slows down

The construction market continued its record growth in March, adding 32.7% since March 2006, that is the fastest pace of the last 17 years, according to the data revealed by the National Statistics Institute (INS) yesterday. Over the past five months, the construction industry has been breaking record after record in terms of growth pace, due to the better ...
http://www.zf.ro/articol_123049/construction_continues_explosive_growth__retail_slows_down.html


Generali: bancassurance brings in 14% of revenues

Generali Asigurari estimates it will see revenues from bancassurance worth some 57 million RON (16 million euros) this year, given its sales partnerships with eight local banks.
"In 2006, revenues from partnerships with banks accounted for around 14% of the total revenues of Generali Asigurari. The share for 2007 depends largely on the number of partners we have when we ...
http://www.zf.ro/articol_123051/generali__bancassurance_brings_in_14__of_revenues.html


Sugar production quota reduces Lemarco's growth

Lemarco, one of the top three producers of sugar in Romania, last year registered a turnover worth 233 million RON (66.5 million euros), an increase of 43% in RON, according to the information provided by the company.
During the same period, Lemarco's net income increased more than 20 times against 2005 climbing to 19 million RON (5.4 million euros). ...pe larg
http://www.zf.ro/articol_123052/sugar_production_quota_reduces_lemarco_s_growth.html


Elmec increases personnel to sustain development

Yannis Lagos, a member of the managing board of Elmec, the domestic importer of Nike, has said he wants Elmec's number of employees to increase from 700 at the end of 2006 to 850 by June this year, in order to assist the company's development plans.
"The large increase in personnel is the result of our plans to open a ...pe larg
http://www.zf.ro/articol_123053/elmec_increases_personnel_to_sustain_development.html


Aviva to invest 35% of clients' money on BSE

Aviva Asigurari de Viata, already a licensed manager of optional private pensions, estimates it will sell the first pensions on May 15, says Corina Cucoli, bancassurance manager with the company.
"We hope to sell the first optional pensions starting May 15 using a field force of around 2,000 marketing agents," stated Corina Cucoli. The company has been recently licensed ...pe larg
http://www.zf.ro/articol_123054/aviva_to_invest_35__of_clients__money_on_bse.html


Warm weather triples cement sales

Cement producers tripled their cement sales in the first quarter of this year, assisted by the favourable weather conditions allowing construction works to be carried out. "The first quarter of 2007 was exceptional because there was very little bad weather in Romania, but the increase in this quarter does not reflect the trend for the whole year," Phillipe Questiaux, ...pe larg
http://www.zf.ro/articol_123055/warm_weather_triples_cement_sales.html


TCE Logistica sees 20% increase in turnover

TCE Logistica (TCE Logistics), one of the top courier and delivery services in Romania, posted a 2.5 million-euro turnover in the first quarter of this year, up 20% on the same period last year. "EU accession has prompted better financial results for January and February than in the past, when there is usually a sudden decline. This year, ...pe larg
http://www.zf.ro/articol_123056/tce_logistica_sees_20__increase_in_turnover_.html


Mall in Valcea sold for 42m euros

The Portuguese company Sonae Sierra, which owns over 40 shopping centres worldwide, has entered the local market through a 42 million-euro transaction, by taking over the River Plaza shopping centre in Ramnicu-Valcea. The shareholders of Setler Mina, the previous owners of River Plaza, are Viorel Popescu, former deputy-prefect of Valcea county, Ghiulsen Popescu, Denise Bojan and Felix Bogdan Bojan, ...pe larg
http://www.zf.ro/articol_123058/mall_in_valcea_sold_for_42m_euros.html


Bathroom furniture brings 5m euros to Arthema

Timisoara-based Arthema, a producer of bathroom furniture, has estimated an approximately 5 million-euro turnover for this year, up 25% on 2006, when the company posted sales worth around 3.75 million euros. "The positive trend in this year's turnover is largely due to the development of the domestic bathroom furniture market following heavy investments in the construction industry. We have ...pe larg
http://www.zf.ro/articol_123057/bathroom_furniture_brings_5m_euros_to_arthema.html


CFR Calatori: 73% higher revenues in 2006

This year, CFR Calatori (CFR - The National Company for Railway Transportation) will invest 174 million RON (around 50 million euros) in acquiring coaches and in modernising its locomotives, according to the Official Gazette. In 2006, the company saw revenues 73% higher than in 2005. The company intends to acquire 189 coaches for approximately 34 million euros (119.3 million ...pe larg
http://www.zf.ro/articol_123059/cfr_calatori__73__higher_revenues_in_2006.html


Vodafone Romania brings ex-Procter & Gamble executive on board

Mobile telephone operator Vodafone Romania has announced the appointment of Paul Markovits as Senior Director of Brand and Marketing Communications, as from April 1, 2007. Markovits, who previously worked for Procter & Gamble, has taken over the position formerly held by Stephanie Jackson, who is currently Senior Director of Online Services at Vodafone Romania. Paul Markovits, 39, is Romanian-born ...pe larg
http://www.zf.ro/articol_123060/vodafone_romania_brings_ex_procter___gamble_executive_on_board_.html


Curiero wants to cover 80% of the rural market

Curiero, one of the leading players on the local courier market, has budgeted a 5.6 million-euro business from postal services this year, 60% more than last year. Expansion on the rural market will also contribute to reaching the business budgeted for the postal segment. At present, Curiero's coverage of rural areas stands at 60%, which the company wants to ...
http://www.zf.ro/articol_123061/curiero_wants_to_cover_80__of_the_rural_market.html

CONSTANTA, Romania -- The second nuclear reactor at a plant in eastern Romania was switched on Monday, and is expected to be fully functioning by the end of September, officials said.

Over the next few months, there will be a series of safety tests with the Canadian-designed Candu reactor, said Teodor Chirica, general manager of the National Nuclear Electric Company.

The first reactor at the Cernavoda plant near the Danube River was turned on 10 years ago and it provides about 10 per cent of Romania's electricity needs.

The two reactors together will provide about 18 per cent of the country's electricity, Chirica said.

The second reactor was built under a contract signed with the Atomic Energy of Canada Ltd. and ANSALDO-Italia.

Units 3 and 4 are also in their planning stages, being expected to be built in six years after the contracts will be signed, officials have said.

When completed, the four units combined are expected to provide up to 40 per cent of Romania's total electricity needs.

BUCAREST (Thomson Financial) - Romania's privatisation agency (AVAS) is studying the Franco-German group EADS unit Eurocopter's complaint against the rejection of its offer to buy the Romanian aircraft and helicopter maker IAR, official sources said.

Eurocopter SAS France had its offer rejected on April 20 because, according to the AVAS, the group failed to meet the required criteria.

The Franco-German group made the only offer for 64.89 pct of IAR shares before the expiration date for bids last December.

At the same time, the 900 employees of IAR have gone on strike, demanding reassurances over pay settlements in case of mass redundancies.
www.forbes.com

Wizz Air launches three new flights from Bucharest
Monday, May 07, 2007

Wizz Air continues its expansion from Romania as 4 months after the launch of 7 new flights from Bucharest and Targu Mures, the carrier boosts its Romanian operations by introducing 3 new routes. Liverpool (UK), Parma (Italy) and Valencia (Spain) will become available from October for travellers from Bucharest.

The new flights will complement the carrier’s existing network of 8 routes from Bucharest and Targu Mures. Flights to Liverpool and Parma will be operated as of 1 October, 3 times a week, while Valencia will be launched on 29 October and will be operated twice a week.

Recently, Wizz Air also revealed that it would increase frequencies on some of its existing flights. On the Bucharest-Rome route, the airline will go up from currently 4 weekly flights to daily as of 8 June and the Bucharest-London operations will gradualy increase from thrice weekly to 6 times/week by 14 July.

American Polimeni aims at EUR 300 mln projects outside Bucharest
US developer Polimeni is aiming for EUR 300 million worth of projects in Romania and plans to enter the local market this year, said Ron Epstein, executive vice-president of Polimeni International, quoted by Mediafax. (03.05.2007)
http://www.businessromania.com/index.php?x=read

ING REIM plans EUR 300 mln portfolio in Romania
ING Real Estate Investment Management (ING REIM), the investment arm of ING Real Estate, is planning to invest around EUR 300 million in Romania in the next two to three years, Pieter Hendrikse, CEO of ING REIM for Europe, told Business Review. (25.04.2007)
http://www.businessromania.com/index.php?x=read

Asmita seeks plots for three residential projects
Indian developer Asmita plans to build three new residential projects in Romania in the following five years, each project worth between EUR 100 and 150 million, James Anthony, one of the Asmita shareholders, has said. (03.05.2007)
http://www.businessromania.com/index.php?x=read

ROMANIA, INS: Productivity in industry rose 13 pc in Q1
2007-05-09
http://www.nineoclock.ro/index.php?page=detalii&categorie=business&id=20070508-509830

Bucharest – Labour productivity increased 12.8 per cent in the first quarter in industry, after the high growth rate from March, according to the data published on Tuesday by the National Institute of Statistics (INS). Compared to the previous month, the industrial production registered in March a general growth of 11.6 per cent, as a result of the growth of production in all the industrial sectors: +11.2 per cent in the extractive industry, +12.3 per cent in the processing industry, and +2.3 per cent in electricity and thermal energy, gas and water. The number of employees also increased in March by 35,800 persons against February, reaching 4,707,100 persons, while the gross average salary was RON 1,364 (~412.58 EUR, still very small !!! :bash: ), up 7.9 per cent over the previous months, according to INS. According to the data furnished by the National Employment Agency, the number of unemployed registered at the end of March 2007 was 433,000 persons, meaning 112.900 persons less than in March 2006.

---------------------------------

http://www.zf.ro/articol_123525/productivitatea_din_industrie__plus_13__in_primul_trimestru.html

http://farm1.static.flickr.com/215/490857809_35a700f899.jpg?v=0

So,

-Januray, 2007: 10.1%
-February, 2007 : 15.3%
-March, 2007 : 13.1%

The boom in constructions continues : 30.6%

Maximum: May, 2006 : 20.2%.

*INS = Institutul National de Statistica

:bash: :ohno: indeed still very small!!!!!!!!!!!

Romania ups 5 notches in the competitiveness ranking in IMD report 2007
http://www.imd.ch/research/publications/wcy/upload/scoreboard.pdf

^^ THanks for the information !

------------------

Economic growth in 2007 could reach 7 per cent

published in issue 3929 page 1 at 2007-05-11

Bucharest – Based on the January-April results, the Ministry of Economy and Finance (MEF) forecasts an economic growth of 7 per cent in 2007, up 0.5 per cent from original predictions, Economy and Finance Minister Varujan Vosganin told a press conference yesterday. He also stated that the economic advance and the budget execution for the first four months of this year show that Romania could conclude this year with a budget deficit lower than 3 per cent GDP.

http://www.nineoclock.ro/index.php?page=detalii&categorie=business&id=20070510-509849

^^ ^^

Romania's economy growing faster than expected, budget surplus

BUCHAREST, Romania: Romania posted a 0.3 percent budget surplus for the first quarter of 2007, with the economy expected to grow at about 7 percent this year, exceeding forecasts, the Finance Minister said Thursday.
Varujan Vosganian said the government had initially forecast a deficit of 1.8 percent of gross domestic product, adding that the country would not exceed this year a 3 percent deficit EU guideline for member states.
EU Economic and Monetary Affairs Commissioner Joaquin Almunia said Tuesday that Romania needed to rein in public spending and to keep stricter fiscal policies, after the EU estimated that Romania's budget deficit could reach 3.2 percent for 2007.
Last year, the economy grew by 7.7 percent and Romania had a budget deficit of 1.9 percent, compared to 1.4 percent in 2005.
In the first quarter of 2007, industrial output was up 7.7 percent, Vosganian said, adding that early figures showed the country's economy could expand by 7 percent this year, compared to initial forecasts of 6.5 percent.

www.iht.com


BUCHAREST, May 11

Economic growth rhythm, estimated at 6.5% (even better ... 7% hopefully ^^ ^^ ) in 2007, will allow Romania to improve the convergence with EU, based on the value of GDP per capita, by 14% in seven years, while Portugal reached the same value in 20 years, according to the National Prognosis Committee, or CNP.
Romania and Bulgaria’s accession to EU is considered a similar moment with the one when Spain and Portugal joined the Union, more than 20 years ago,” according to a CNP study.

The gap between Romania and EU, expressed in GDP/capita as regards the power of purchase standards, is higher in this case compared to the two countries, respectively about 36% of EU average value for 2006. "

www.mediafax.ro

9th place/35European countries - shopping space built

According to a study conducted by real estate consultant Cushman&Wakefield, Romania will make it to ninth place from 34 European countries for the total stock of shopping space built in 2007 and 2008, which equals nearly 752,000 sqm.

The total shopping space to be built in Romania by 2008 will represent 4.4 percent of the total delivered in Europe over the same period of time, found the biannual European Shopping Center Report, from Cushman&Wakefield.



Romania becomes Immoeast’s focus in SEE

Austrian investment fund Immoeast, one of the most active institutional investors in the last year, has switched focus from Central and Eastern Europe to South Eastern Europe, with Romania being the main investment target, the fund has recently announced.

Of a total of EUR 6 billion of forecasted investments, Romania, Bulgaria and all former Yugoslavian states will receive some EUR 2.6 billion, which is 45 percent of the total amount to be committed.

Moreover, Romania is the core market for the fund in the SEE region. CEE will receive 33 percent of the investments, while Russia and Ukraine will see 24 percent, says Karl Petrikovics, general manager of Immoeast.

The investment fund will soon launch a EUR 3 billion capital increase meant to cover additional investments throughout Europe. There are already precise plans for using the inflow of cash, which include investments in the range of EUR 6 billion, say Immoeast officials.

The investment fund currently owns 40 properties in Romania. Its latest acquisition involves the Euromall commercial center in Galati, according to media reports. None of the parties involved in the transaction gave details about the purchase. Immoeast’s local property portfolio reached some EUR 1.4 billion at the end of the first quarter of this year. Of the total 1.2 million sqm owned by the fund in Romania, the biggest projects are S-Park, Iride Business Park and two Polus Center projects located in Cluj-Napoca and Constanta.

Retail has gained a bigger role in the fund’s portfolio, according to its latest announcement, with 61 percent of the committed sum. Offices come next with 30 percent of the plans, while logistics and retail have 5 and 4 percent respectively. The investment fund plans to get involved in projects under development rather than acquire finalized ones, according to its strategy. Around two thirds of the investment program will be covered by properties under development, while only 25 percent will constitute completed properties. The rest will go on investments for stakes in other companies.

Immoeast has already invested some EUR 500 million in Romania this year. The biggest transaction was that involving Polus Center in Constanta for some EUR 185 million.

The fund’s portfolio in Romania covers all market segments. On the residential segment, the fund controls 25 percent of housing developer Adama, while in logistics it is present through the acquisition of local firm Logistics Contractor, which will develop a EUR 70 mln project.

Microsoft chairman Bill Gates inaugurated a technical support center in Bucharest on Thursday, saying he was confident that Romania's recent accession to the European Union would boost foreign investment and the country's IT industry.
'This center is very important for us. It will help our customers in Europe resolve complex problems,' Gates said. 'We are expecting to continue to invest in Romania. ... We collaborated well with the government and our partners.'

Gates also launched the new Vista operating system, Office 2007 and Exchange Server 2007 in Romania, saying that many Romanian specialists, including those working for a local company acquired by Microsoft, had worked to develop them. Microsoft bought GeCAD, which makes antivirus and mail server software, in 2003 for an undisclosed amount.

The support center in Bucharest is expected to employ up to 600 local specialists and is to provide assistance to customers in Europe, particularly in France and Germany. President Traian Basescu said that while the country has changed its laws in recent years to fight computer piracy, many Romanians were introduced to Microsoft and computers in the early 1990s by using pirated software as they had no access to the original software.

'A bad thing, piracy, became in the end an investment in friendship toward Microsoft and Bill Gates, an investment in educating the young generation in Romania which created the Romanians' friendship with the computer,' said Basescu. He praised Gates for his support of charities worldwide, saying he hoped Romanian companies would follow his example and become more socially responsible. 'We see charitable acts here, too, but they are mostly based on mercy, and not on the idea of returning part of the wealth to help society,' Basescu said.

Premier Calin Popescu Tariceanu praised the opening of the Microsoft support center, saying it would boost the local IT sector and help Romania move faster into the computer age. Tariceanu said that half of the business IT figure of about euro1 billion (US$1.2 billion) in Romania represents exports. 'I think this is the future for Romania's economy and less the classical industrial activities,' he said.:banana:

Romania will be the 17th country who will present the televoting results. The spokeperson for Romania will be like in the previous year Andreea Marin who host succesfully the last Junior Eurovision Song Contest.

Andreea Marin Banica is one of the most successful presenter of the Romanian national broadcaster (TVR). Her success is due to the TV-show "Surprize-Surprize". She is also the producer of many documentaries and interviews with international celebrities like: Harrison Ford, Liam Neeson, Mike Meyers, Erik Roberts, Martin Landau, Larry Hagman, Richard Clayderman, Martin Lawrence, Beyonce, Liza Minnelli.

VIENNA (Thomson Financial) - Petrom SA, the Romanian unit of Austrian gas and oil company OMV, said it plans to exercise its rights to take over Shell Gas Romania SA and that it will also raise its stake in Trans Gas Services SRL.

In a press release, Petrom said it has decided to exercise its preemption right to purchase the 55.53 pct of Shell Gas Romania that it does not yet own.

Petrom's decision follows Shell's March 21 announcement of the planned sale of its liquefied petroleum gas (LPG) business in Romania, Bulgaria, the Czech Republic, Germany, Spain and Switzerland to French LPG distributor Rubis.

Petrom also said that it plans to purchase an additional 60 pct of Trans Gas Services, raising its overall stake in the propane supplier to 80 pct.

Details on the financial aspects of the planned transactions were not announced.

Petrom expects competition authorities to approve the Shell Gas Romania deal by the third quarter of this year.

BUCHAREST (Thomson Financial) - Romania's national bank said it has lowered its forecast for the 2007 inflation rate to 3.7 pct from an earlier estimate of 4.6 pct.

The revision comes after a slowdown in price rises in the first quarter in relation to the discount rate at the start of the year, said the bank's governor, Mugur Isarescu.

The inflation rate fell to 3.66 pct in March from a year ago, its lowest level since 1989.

In 2006, the inflation rate was 4.87 pct.:banana:

First Dyneff petrol station of Rompetrol in France

http://www.nineoclock.ro/index.php?page=detalii&categorie=business&id=20070513-509860

Investments reached EUR 8 M. In 2007 the group allots EUR 40 M for ten new units and it will use Dyneff company as a platform for future investments in France and in Western Europe.

published in issue 3930 page 7 at 2007-05-14

The first Rompetrol petrol station in France required investments amounting to EUR 8 M.

The group intends to set up ten more such stations in 2007 and the value of investments will reach EUR 40 M, declared for Mediafax by the President of the oil group, Dinu Patriciu (photo), during the launching event of the first Rompetrol station in France, in Arzenes.

The petrol station sells E 85, a bio-fuel that has 85 per cent ethanol within its structure, but it can be used only by cars especially designed for such a fuel.

Part of the fuels come from Petromidia refinery: “The bio-fuel used by The Rompetrol Group comes from South America, Brazil and from European sources, and I hope that we shall also produce bio-fuel in Romania in 2008, which means bio-diesel and bio-ethanol,” according to Patriciu.

Patriciu affirmed that Petromidia would become self-sufficient in bio-fuels with the purpose of complying with the European requirements which ask that a share of the fuels traded to be bio-fuels.

Regarding Dyneff, Patriciu said that they would use the company bought in 2005 as a platform for the investments that the oil group will make in France and in Western Europe. The group activities in France are EUR 2 billion worth and 30 per cent of the group turnover is achieved in Romania. For the time being, Rompetrol does not intend to relocate the headquarters from Romania: “I am confident that this will happen when Romania gets rid of monsters, of various bad nightmares which it experiences. I hope they will vanish and it will soon get rid of this,” Patriciu affirmed, without entering into details.

Rompetrol to build eur 60 m oil product storage until 2010

Rompetrol will invest, through its subsidiary Dyneff, EUR 60 M in building new oil product storage in the French locality Port la Nouvelle. In Port la Nouvelle Dyneff has two oil product storages. The company intends to replace one of these storages, following urban development, so that a new objective needs to be built in the industrial area.

The construction of the new storage, to be called Dyneff 3, will be completed in 2011-2012.

Leder & Schuh, to open 500 sqm shoe store
www.zf.ro

Leder & Schuh, the biggest Austrian footwear retailer and numbered among Europe's top six retailers, announced it would arrive on the Romanian market next year. The footwear company plans to gain a position among the top three footwear retailers on the Romanian market.
"On any market we enter, we want to gain a position within the top three footwear retailers in the respective country. Of course, we must take into account the overall economic situation, competition and the availability of necessary retail space," Gerald Zimmermann, Leder & Schuh managing director for the Czech Republic, Poland and Slovakia, told ZF. Zimmermann will also be in charge of the new Romanian operations, starting next year.

Saint-Gobain makes 35m-euro investment in Ploiesti

Saint-Gobain Isover Romania invested 35 million euros in a glass mineral wool production facility, built on an industrial site in Ploiesti. The plant, opened on Tuesday, is located on a 10,000 square-metre plot, with an annual capacity of around 20,000 tonnes. Around 50% of the output of the new plant is sold on the domestic market, with the rest exported, in particular to South-Eastern Europe. The company also owns a plant in Ploiesti producing glass wool used for insulation, with a production capacity of 8,000 tonnes per year. According to its own estimates, Saint-Gobain Isover has a 48% share of the glass wool market, and a 55% share of the basalt wool market. The company posted a six million euro turnover in the first three months of the year. The company is part of the French group Saint-Gobain, one of the leading producers of construction materials worldwide. The company is 99.1% held by Saint-Gobain Isover Austria, whilst the remaining shares are controlled by Saint-Gobain Isover Poland.


Euromall Pitesti opens tomorrow
The developer of the shopping centre network Euromall, held by a group of French investors, will open the Pitesti-based Euromall complex tomorrow, following an investment of 35 million euros. The investment will create over 2,000 jobs, and the opening of the mall will be attended by representatives of the investors, by the partners of Euromall, as well as by the local authorities, the developer announced on Tuesday. According to previous information provided by Euromall, the shopping centre - the first of the network on the local market - will have a lettable area of over 20,000 square metres. The group is currently building another mall in Galati.

^^Euromall
http://img265.imageshack.us/img265/6987/92084856pz1.jpg (http://imageshack.us)


and Pitesti Mall
http://img265.imageshack.us/img265/7409/16009874tc8.jpg (http://imageshack.us)

May, 18 2007

BUCHAREST – The American Starwood Group holding brand-names such as Sheraton, might open a hotel in Bucharest, and so might Hyatt, who announced its intention to build a hotel here two years ago, who could follow the example of the Radisson Group that will operate on the location of the former Bucharest Hotel starting this year, stated Tinu Sebesanu, General Manager of Trend Hospitality Consulting, quoted by Rompres.

The majority of international hotel chains such as Sheraton and Hyatt will enter the Romanian market in the next five years, said Sebesanu. “Almost all the international hotel chains will come to Romania in the next five years. I think that some of them have waited because they come not to build hotels, but to manage them,” explain Sebesanu, who has been involved in the Howard Johnson project in Bucharest.

“Bucharest will attract most of the five-star hotels of the groups that are to come. However, in the country there is a need for three and three star-plus hotels that are the most sought after and that have a long-standing prospect, as well as for motels, because if you drive to the Black Sea, there is nowhere to stop if you want,” explain Sebesanu.

http://www.nineoclock.ro/index.php?page=detalii&categorie=business&id=20070517-509903

Coffee Republic steps up European expansion
By Emma Thelwell
Last Updated: 1:08pm BST 18/05/2007


Coffee Republic, the beleaguered coffee chain, is stepping up its efforts to expand into Eastern Europe, with plans to open a franchise in Romania.

In its third international franchise deal, the group has announced plans to allow Krruss Holdings SRL to develop Coffee Republic outlets in Romania.

It is due to open its first international franchise in neighbouring Bulgaria in July.

Despite rolling out "Britain's first coffee chain" in 1995, the group insists the coffee market is still finding its feet.

Certainly, the Starbucks juggernaut knocked many competitors off its feet when it arrived in the UK in 1998.

Steven Bartlett, chief executive, said: "We were punished for being the first chain, and got caught up in the dash for great corner sites in London and other big cities.

"But those sites don't make any money - the rents in London are too high. So we've got rid of some of them and we're also now focusing on the on-the-go market."

While customers outside London appreciate relaxing in Coffee Republic's stores, Londoners will happily walk around clutching their coffee, he explained, and this on-the-go market is very lucrative.

Coffee Republics' most profitable outlet, for example, is its smallest on-the-go store, based in Canary Wharf.

The group abandoned a corner-site on The Strand in London a while ago, but recently found another plot, four doors down, for a third of the rent cost.

After 12 years of losing money the group hopes its moves in the international market will make it cash positive by the summer.

The group's last interim results revealed sales were down 30pc to £5.4m, for the six months to the end of September 2006, thanks to rolling out 14 franchises.

Mr Bartlett revealed that following the launch of the Bulgarian chain, the group will look to confirm a "number of deals", and will look into franchise queries it has received from the Middle East, China and India.

However, China's market may prove too daunting. Mr Bartlett marvelled: "There are 200 cities in China, and 75 of them are the size of London - how do you do a deal with something that size?"

For now, the group sees "substantial potential" in Eastern Europe, where they "like British brands and recognise us". Germany, France and Italy, however, have their own coffee cultures, said Mr Bartlett, and are not so open to British brands.

In the UK, the group hopes that sales will be boosted by the imminent launch of new products developed with well-known brands, including Thorntons, Nestle and Nutella.

thanx for the news!

Not bad for Romania ... :cheers:
http://img132.imageshack.us/img132/3120/q1vo7.jpg (http://imageshack.us)

what's are the numbers standing for?

what's are the numbers standing for?

GLA stands for "gross leasable area", and it refers to the surface of malls, shopping centres, etc. available to be rented in a given period of time. So what you can see up there basically shows the surface of commercial/entertainment venues that will be rentable and made available for the period 2007/2008! :cheers:

www.citigroup.com
Citigroup Inc. (NYSE: C)
March 15, 2007

CitiFinancial Opens 66th Unit in Romania


Consumer Finance Division Tripled Branch Network Over Last Year

Bucharest – CitiFinancial, the consumer finance division of Citibank Romania SA, announces the opening of its 66th unit, in Cluj-Napoca, which completes the 11 new direct sales centers launch strategy planned for the beginning of 2007. At this moment, CitiFinancial has 35 direct sales centers, and 31 branches all across the country. In just one year, CitiFinancial has succeeded in almost tripling its branch network, from 11 branches in early 2006.
”CitiFinancial’s expansion has two pillars – the branches, and the direct sales centers – both of them promoting our retail concepts of convenience, accessibility, and flexibility. Our branches provide our clients with the ability to receive the loan within the same day of making the application. Our direct sales centers offer complete financial counseling and application support, both within our premises and at the client’s location – whether at the workplace or at home – upon our customer’s preference,” said John Hays, CitiFinancial Country Business Manager.
The 11 CitiFinancial direct sales centers opened since the beginning of 2007 are located in Alexandria, Bistrita, Calarasi, Vaslui, Craiova, Deva, Galati, Giurgiu, Ramnicu Valcea, Resita and Cluj-Napoca.
In 2006, CitiFinancial launched 20 new branches, located in Bucuresti (two), Pitesti, Craiova, Constanta (the second branch) Bacau, Braila, Galati (the second branch), Brasov (the second branch), Arad, Oradea, Timisoara, Iasi, Buzau, Tg. Mures, Sibiu, Piatra Neamt, Cluj (the second branch), Rm. Valcea and Drobeta Turnu Severin, and five new direct sales centers in Targoviste, Ploiesti, Targu Jiu, Iasi and Slobozia.

86% of Polus Center's space is already rented
www.zf.ro/

Representatives of TriGranit Development Corporation, the developer of the Cluj-based shopping centre Polus, sold to the Immoeast investment fund in a 210 million-euro transaction last year, have announced that 86% of the centre's spaces had already been leased, with the official opening to take place in October 2007. Among the companies that have signed leasing contracts are Sephora, Marks & Spencer, KFC, Mango, Zara, Lee Cooper and Yves Rocher. The Cluj-based project covers 60,000 square metres. The management of TriGranit also stated that similar projects are scheduled to begin soon in other areas in Romania. "We are mainly looking at cities with at least 200,000 inhabitants, because you need customers," stated Arpad Torok, development manager of TriGranit Development Corporation. According to Torok, the TriGranit group is interested in cities such as Brasov, Arad and Craiova. Currently, in addition to the project in Cluj, the company has a similar ongoing project in Constanta, which is planned for completion next year.


British at Coffee Republic enter coffee shop market

Coffee Republic, one of the best-known coffee chains in the UK, has closed a master franchise contract with Kruss Holdings, which operates in Romanian real estate and retail, with a view to entering the local market. The agreement would allow Kruss Holdings to open both coffee shops in Romania, and to grant franchise rights to other operators, reads the Internet publication TMCnet.com. "Romania's recent accession to the European Union gives us confidence that we can benefit from an expected sustained economic growth," said Salim Thava, CEO of Kruss Holdings. A third such transaction for the British company, the sale of the Coffee Republic franchise rights for Romania, is part of the strategy of the British company to concentrate on developing Eastern European markets. The company's first international franchise will be opened in Bulgaria in July of this year. Numerous international coffee shop operators have rushed onto the local market over the past year. Costa Cafe, another British chain, entered the local market at the end of 2006, Starbucks opened its first coffee shop in Eastern Europe, in Bucharest, a month ago, and the opening of a Hard Rock cafe, held by an American chain, is projected to take place in the second half of this year.


Coldwell Banker unveils its plans for the Romanian market (RO/US)

Coldwell Banker Affiliates of Romania, which has recently entered the real estate market, being involved in brokerage and consultancy services, has announced the future plans of the company and introduced the new management team.
The company aims to be among the top five real estate agencies in Romania by the end of the year. “This target will be achieved by recruiting highly skilled professionals as well as by launching, for the first time in our country, programs that have proven their functionality on other markets,” says Valentin Ilie, CEO, Coldwell Banker Affiliates of Romania.

The company’s development program forsees the territorial extension with 20 offices in the first three years from the initial set up.
The management team will focus on building a professional team, which will raise the quality level of the services on the real estate market. “We shall recruit both specialists in real estate brokerage, as well as people acting in different industries, but experienced in sales, who will be trained using educational programs provided by Coldwell Banker University,” explains Norbert Hoeckl, VP Strategy for the same company.

Coldwell Banker will offer a wide range of services – brokerage, for all the real estate market segments as well as complementary services: acquisitions & dispositions, market research, investment analysis, property management, due diligence etc.
The Residential Department will be run by Razvan Stroescu, Catalin Secareanu will handle the brokerage activities for the Comercial segment, Adrian Ghimpau is Expansion Manager, George Harpa will coordinate the property management services and Despina Ponomarenco will supervise the brand image for Coldwell Banker in Romania.

Among the programs that will be launched in the first phase on the Romanian market can be counted:
- “Coldwell Banker Previews” – an innovative service that targets the luxury segment, enabling the purchase of properties estimated over €1 million;
- “New Homes” – especially designed program for the needs of new residential project developers;
- “Coldwell Banker Concierge” – a network of trusted suppliers who offer complementary services to the acquisition or sale of a house: carpentry, restoration, security.

Source: Coldwell Banker

Tagor and Patron Capital join to invest $75 mln in Romania
www.businessromania.com

Israeli real estate firm Tagor Capital is planning $75 million of investments in Romania following a four-year agreement with UK-based real estate fund Patron Capital, according to Israeli newspaper Globes Online. The investment targets residential and commercial projects managed by Netherlands-registered Korbein Corporation BV, which was acquired by the subsidiaries of two companies: Tagor Eastern Europe, which owns 25 percent of Korbein, and Patron Pipera Realty Sarl, which holds the remaining 75 percent. The two companies have acquired more than 50 hectares of land for developing residential and commercial projects in Romania, estimating a total investment of at least $248 million. Another Israeli financial real estate developer, Tamir Fishman, is planning EUR 375 million worth of investments in developing real estate projects focused on the luxury sector, commercial spaces and hotels in Romania, Hungary, Czech Republic and Poland, according to Israeli newspaper Haaretz.


Money’s not too tight to mention

Western European developers build and sell properties with up-to and in-record transactions with more than EUR 500 million price tags, which is understandable considering their markets have undergone several development cycles. Romania’s top transaction, which involved an institutional investor, reached EUR 210 million. Big and quality projects are coming up and they could become targets for investment funds with lots of cash to splash. The value of real estate transactions in Romania has steadily increased in the past few years along with new projects delivered and with the amplified interest from institutional investors. Last year, deals were closed for sums amounting to EUR 100 million but some of them reached record levels for the Romanian market. Austrian investment fund Immoeast bought Polus Center in Cluj for some EUR 210 million, while the same investor committed another EUR 185 million for Polus Center in Constanta. Overall, the value per transaction increased in 2006 by 60 percent on the previous years, says Silviana Badea, investment consultant with Colliers.

Four years ago, the first notable real estate deals in Romania were sealed at $30 million – Opera House and Europe House each had this price tag. Last year, market analysts cried “record” for several real estate transactions going from EUR 80 million paid by Accession Fund for Charles de Gaulle Plaza, to the EUR 90 million Europolis shelled out for two office buildings in Sema Park. The EUR 100 million threshold was reached when Australian APN Fund Management snapped up City Mall for this amount.

By comparison, the largest transaction in Bulgaria was completed this year with a EUR 180 million price tag. Investment fund Gramercy paid the sum for Business Park Sofia, sold by Linder.

The value of transactions in Romania, however high it has reached in the last couple of months, lags behind what has happened in Western European countries. Although a comparison between deals in Romania and ones in a more mature market would be unfair, looking at these markets one may see what is expected to happen in Romania in a couple of years. The biggest European transaction this year reaches EUR 950 million, paid for the St. Mary Axe office building in London by investment bank Evans Randall and property company IVG Immobilien.

Higher transaction volumes constrained by lack of product and yield compression

The local real estate market has welcomed several large institutional investors in recent years, some of which have proved to be very active in acquisitions, thus compensating for the lack of others. Analysts believe both their number and their investments in Romania are satisfactory for the time being and expect others to come. “With EU accession, increasing allocations to real estate as an asset class from pension funds, for example, and return-driven requirements pushing capital further out on both the geographical and risk spectrum, Romania is on investment committees’ radar,” said Troy Javaher, director for business development with Jones Lang LaSalle Romania. Despite this interest, it is not yet clear how much of it and fresh capital will translate into actual transactions, as placing this capital has proven particularly difficult. “Decision makers at some funds are hesitant to commit given the pricing and yields. Higher transactions volume is constrained by both lack of products and recent rapid yield compression,” said the JLL specialist.
The yields in Romania are currently witnessing a downwards trend, varying between 6.5 and 8 percent at the moment, says Nicu Ghereghe, of the capital markets departments of Cushman & Wakefield Activ Consulting. The value per transaction is quite high, and the forecast for the coming years is that, along with the market growth, Romania will have projects similar in value to those at present in Poland, the Czech Republic and Hungary, says Ghereghe.
As for the number of institutional investors present in Romania, it will certainly increase when the country has more projects that are higher in value and in quality. Although it is not a strict rule, institutional investors are generally interested in projects exceeding EUR 50 million in value. And there are enough investment targets in Romania that are interesting to investment funds. Office building America House, along with commercial centers Plaza Romania and Bucuresti Mall, could be included in the first category, but it is important to mention their owners have no intention to sell, said the Cushman & Wakefield analyst. Mixed projects will gain momentum, said Javaher of JLL, along with new retail schemes and residential projects for average earners.

Institutional investments reach for new grounds

Investors are increasingly looking to forward purchase properties under development and to buy into platforms by taking an equity stake in a developer to secure a pipeline of investment products or to secure the development return, the PwC report issued in March this year found. This has applied also to Romanian investments. Immoeast is acquiring properties through forward-purchase deals, but has also acquired stakes in companies working locally such as residential developer Adama.
Moreover, the shortage of conventional real estate is forcing investors to look at a much broader range of assets than ever before, believe the PwC specialists. “A huge array of investors are interested in gaining exposure to new areas such as nursing homes, retirement communities, student housing, self-storage, car parking facilities, pubs, recreational facilities, spas, condo hotels, hospitals and airports,” states the PwC report. This trend is at its beginning in Romania. One example is Equest Balkan Properties’ involvement in the development of the Europark car park in Bucharest.

Century 21 comes to Romania

The master franchise rights for the real estate agency Century 21 in Romania have been purchased by three local businessmen: Ionut Dumitrescu, Thomas Lundin and Omar Akili, Century 21 has announced. The agreement between the three and Century 21 Real Estate LLC, which is the franchisor for Century 21 franchise rights, grants the owners exclusive franchising rights to the Century 21 name and system throughout Romania.
At the end of last year, Lundin announced the first Century 21 office in Romania was to open in the near future. Contacted by Business Review, Dumitrescu, one of the founders of local real estate agency Eurisko, would not offer any details. By the time BR went to print, none of the other partners in the business could be contacted.
Dumitrescu recently sold a majority share package in Eurisko to investment fund Fastahead, but still owns 10 percent of the real estate company which he, along with Gabriel Marchievici and Dan Vasilache, set up in 1997.
The Century 21 System has been franchised in over 45 countries encompassing Europe, Latin America, the Middle East and Asia.
The chain’s real estate agencies focus largely on residential transactions. The Romanian office is another step in Century 21’s expansion strategy in South-Eastern Europe after it opened an affiliated office in Bulgaria last year.
The Century 21 brand is part of the Realogy Group, which includes Coldwell Banker, a firm that recently opened an office in Romania. Blacksmith Embankment Global has bought the local Coldwell Banker franchise.
According to data published by the Franchise Mall, a specialized franchise publication, the total investment in a Century 21 franchise varies between $11,700 and $522,500. The initial franchise fee amounts to $25,000, while the royalty fee is 6 percent.

Sabanci has EUR 100 mln of local plans

Turkish group Sabanci will invest EUR 100 million in expanding the Teknosa retail chain in Romania, following its Cosmo takeover last year, said the group’s president, Guler Sabanci. Moreover, the company is planning to build a cement production unit in Constanta to relocate cement production activities from the Turkish market. The group’s strategy in Romania also includes a Lasa tire dealer.
Teknosa will grow in Romania by opening its own new stores, but also by taking over other retail chains. Sabanci Holding took over 51 percent of Primex, the company which operated the home appliance chain Cosmo in Romania. The company launched the Teknosa chain last week by reopening the Cosmo store in Pantelimon following a EUR 1 million investment. It is not the first Teknosa store opened on the premises of a Cosmo store – the first was opened at the end of last year in Bucharest.
Sabanci plans to open over ten new stores this year. The current Cosmo network numbers 50 stores. Another Teknosa will be opened in Euromall Pitesti, while another Cosmo store will be reopened as Teknosa in Ploiesti, said Gheorghe Baba, general manager of Primex. The Cosmo network will be kept as it is in medium and small cities, while in large cities it will be replaced by Teknosa, both with stand-alone stores and with outlets in retail parks.
Teknosa stores will cover some 700 sqm in sales area and require an investment between EUR 200,000 and 400,000, as the company only operates in rented spaces.
Teknosa is the largest Turkish home appliance goods retailer and is fully owned by Sabanci Holding. The company owns 164 stores in Turkey. The Primex takeover is the first foreign purchase by the Turkish group.
Sabanci’s plans to start cement production activities in Romania were announced two years ago, when group representatives talked about a greenfield project worth some $150 million for a million tons of cement per year. Sabanci would be the third largest international cement producer in Romania; joining French Lafarge, German HeidelbergCement and Swiss Holcim.