Canadian real estate company Benevo has taken over pump manufacturer Aversa, acquiring its business, factory and 10 hectares in Bucharest.

Through its subsidiary Blue Diamond and their JV partner Autoplast, the Canadian firm won the bid to acquire the bankrupt company and its assets in the Obor area of the Romanian capital.

Update: The value of the acquisition was of EUR 17.3 million, according to Economy Minister Varujan Vosganian. The ministry asked for a EUR 5.1 million guarantee for continuing Aversa's activity, in order to avoid the closure of the company, while its large plot downtown will be used for real estate.

President of Benevo Micheal Topolinski (in picture) said the company planned to develop the business at another site.

“Benevo intends to invest capital and its expertise to relocate the business in Bucharest to a more technologically advanced factory and employ a minimum of 200 people,” Topolinski said.

He did not reveal the company’s plans for the 10-hectare land plot near the crowded Obor market.

Benevo was assisted in the Aversa transaction by law firm Biris Goran and Ionut Petcu from The Advisers.

The Canadian company, which has been active on the Romanian market since 2007, also purchased Victoria City Center in 2008, following a transaction worth EUR 40 million, while last year it purchased Vulcan Retail Park in Bucharest, with EUR 21.6 million.

According to the company, the Victoria City and Vulcan sites will employ a combined 550 people during their construction period and will create a further 1100 new jobs when the shopping center and retail park planned for the sites are opened.

Irina Popescu, irina.popescu@romania-insider.com

(photo source: Benevo)