Real estate development company Impact, controlled by local businessman Gheorghe Iaciu, has bought a third of a 7.9 hectare land in Bucharest, which is located on Barbu Vacarescu boulevard.

The transaction was worth EUR 9 million and was funded from money Impact recently raised via a capital increase. Impact raised EUR 18 million from its shareholders, earlier this year.

The company said that the land purchase is part of the company’s strategy for 2014-2018, which includes new real estate developments.

The transaction values the whole plot at EUR 27 million, which is some EUR 340 per sqm. The land includes the former Zone Arena concert venue as well as the plots currently occupied by Kaufland and Billa stores.

Further to the north of the Barbu Vacarescu boulevard some of the largest office projects in Bucharest are located.

Gheorghe Iaciu owns 49% of Impact and Adrian Andrici, also a local investor, has 16% of the shares. The company has a market capitalization of EUR 85 million as its share price increased more than five times in the last year.

Andrei Chirileasa, andrei@romania-insider.com