BCR has decided to lease the 132 unsold apartments in the Silver Mountain luxury residential complex, acquired in 2014 in exchange for debt, to the hotel operator Bookingpedia. This represents the largest transaction for leasing residential units for hotel purposes in Romania.
The Silver Mountain complex in Poiana Brasov was purchased by BCR in May 2014 for EUR 49.7 million, four months after the project developer went bankrupt.
BCR, which holds 98% of the bankrupt company’s debt, acquired through an auction 171 apartments, 176 parking spaces, two commercial spaces, a multifunctional building (restaurant, club, spa & fitness), access roads, green spaces, and surplus land measuring 206,500 sqm.
Now, the 132 remaining unsold apartments have been leased by Bookingpedia and, as of November 1, 2018, have been transformed into 4-star accommodation units.
„Bookingpedia leased the apartments from BCR at a price advantageous to both parties. They transformed the apartments into a hotel, but BCR can sell them at any time, with buyers having the option to become investors by leaving the apartments with the hotel operator and recovering their investment through rent,“ said Mircea Draghici, managing director of EST Hospitality, the transaction’s intermediary.
BCR financed the project with EUR 86 million, of which it recovered EUR 52.3 million „on paper.“ One month before INR Management’s insolvency was triggered on August 19, 2013, the company was purchased by the Asian investment fund UNI-ASIA Holding, represented in Eastern Europe by Bogdan Gheorghiu.
The buyers were willing to continue the project, which required an additional investment of approximately EUR 100 million. Following the bankruptcy, however, the investors stepped back, and the bank took over the assets in exchange for the debt.
Source: Profit
Frequently Asked Questions
What is the nature of the deal between BCR and Bookingpedia?
BCR leased 132 unsold luxury apartments in the Silver Mountain complex to Bookingpedia to be operated as a 4-star hotel.
Can the Silver Mountain apartments still be purchased?
Yes, BCR retains the right to sell the apartments, and buyers can choose to keep them in the hotel circuit as an investment.
What was the historical context of the Silver Mountain acquisition?
BCR acquired the complex in 2014 for EUR 49.7 million following the developer’s bankruptcy to recover part of an EUR 86 million debt.