Reds Alliance – IKEA for housing project development in Romania

By Eleni Botas

The Reds management is resuming its activity in Romania, as it had announced at the regular general meeting of shareholders last July.

The Reds have reached an agreement with IKEA Romania’s arm, Vastint Group, for the joint development of neighboring plots owned by the two companies in the country.

The plot of Reds is 7 acres and the Vastint Group 13 acres and the construction of a residential and office complex with a total area of ​​80,000 square meters is planned.

This plot of Reds as capital.gr had written had been the point of friction between the former and current management of Reds.

In particular, the sale was a point of intense controversy between the previous management of Reds and the shareholder and current CEO of Aktor, Christos Panagiotopoulos (and current president of Reds), regarding the sale price of the property, which was considered low. Thus, after the entry of the new shareholder in ELLAKTOR and the change of the management of the Group companies, the new BoD revoked the previous decision for the sale of the plot of the Romanian subsidiary Profit Construct SRL with a total area of ​​7,974 square meters in Bucharest, at the price of 11 , 4 million euros, a price which was considered low.

The development of the plot in the Straoulesti-Baneasa area of ​​Bucharest is also in the implementation phase as the Reds management has reached an agreement with a local investor for the construction of a residential complex. The development of the plot dates back to 2009, when the construction of 72 houses inside the plot began, while for some reasons their construction stopped in 2011, with the result that the project remained “in concrete”.

“We have already made moves to renew the building permit and we are discussing its joint use by a strong market player,” the Reds president said recently.