Real estate developer Hagag Development Europe, controlled by businessman Yitzhak Hagag, intends to purchase the Rex Hotel in the Mamaia resort from the family of Carmen Palade, the former wife of businessman Dan Adamescu.
Investments in the renovation of the hotel, which was affected by a fire in 2011, are estimated at EUR 8-10 million, which is why the sale price of the property could be approximately EUR 3 million.
At the end of 2020, the company that owned the hotel was converted from a joint-stock company into a limited liability company, with partners Zinca Palade, Carmen Adamescu, and Rani Palade.
The fixed assets declared in the 2020 financial balance sheet of Rex Mamaia SRL have a value of EUR 7.8 million.
Hagag Development Europe intends to make the acquisition through its new company, Hagag Rex Mamaia.
“Hagag Development Europe has ambitious plans for Romania. We aim to consolidate our position locally, both in terms of existing assets and geographically. In this context, we are actively prospecting the market and looking carefully at several properties or lands with potential, suitable for residential or office projects, but also hotel projects,” company representatives stated.
Additionally, Yitzhak Hagag recently announced that he aims to add new assets to the portfolio that would allow Hagag to expand into the Romanian hotel market. At the same time, the real estate developer purchased the Susai Hotel in Predeal from businessman Adrian Sarbu and will invest EUR 60 million in its renovation to raise it to a minimum 5-star standard.
The developer has a local portfolio exceeding EUR 200 million, according to the investor’s announcements.
To date, it has completed the restoration of the former Petrom headquarters at 109 Calea Victoriei, transformed into commercial and office spaces; the restoration of the historic building at 139 Calea Victoriei, which was converted into 33 apartments; and the first 3 buildings of a residential complex developed on the shores of Lake Pipera in Voluntari, which will eventually include 17 buildings with 1,350 apartments, a EUR 90 million investment. Furthermore, Hagag also owns the Stirbei Palace, for the renovation of which it has allocated a budget of EUR 20 million; a plot of land in the Primaverii neighborhood where it is building a block with 35 luxury apartments; and a historic building with socialist architecture, purchased for over EUR 9 million, located at 21 Tudor Arghezi Street.
Frequently Asked Questions
Who is the buyer of the Rex Hotel in Mamaia?
The Rex Hotel is being targeted for acquisition by the real estate developer Hagag Development Europe, controlled by businessman Yitzhak Hagag.
How much is the estimated investment for the Rex Hotel renovation?
The investments required to renovate the hotel, which was damaged by a fire in 2011, are estimated at approximately EUR 8-10 million.
What other hotel properties does Hagag own in Romania?
In addition to the Rex Hotel, Hagag recently purchased the Susai Hotel in Predeal, where it plans a EUR 60 million investment.