Lewis Charles Romania Property says that it does not anticipate economic recovery in Romania until 2011 and it has put one project on hold.
There are two projects at the moment – Ploiesti, a retail development, and Mogosoaia, a 50%-owned residential development.
So far, €21.6m has been invested in Ploiesti. This is still at the planning stage and construction won’t begin until the economy improves and finance is available. A standstill agreement is being negotiated with creditors owed €2.7m. Sort-term debt of €4m is repayable on 20 July 2009 and the company is looking to refinance this.
Lewis Charles Romania has invested €13.4m in Mogosoaia. Sales and marketing of the project, which has been named Evergreen, will begin in February. The project will be constructed in seven phases over four years. Phase 1 begins in March and will be broken up into three sections. The second section won’t begin construction until the first section of 64 apartments has been sold. The available bank facility is enough for the construction of Phase 1.
The two projects have their own debt which has nothing to do with Lewis Charles Romania itself. The company has €1.7m of cash in the bank in Guernsey.
Lewis Charles Romania raised £27.4m at 140p a share when it floated on Aim on 2 August 2007.
At 6.5p a share, the company is valued at £1.27m.
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