Real estate developer Impact (BVB ticker: IMP) borrowed RON 18 million (EUR 4 million) from local lender Banca Transilvania (TLV), to finance new real estate investments. The loans is for an 18 months period, according to an announcement made by Impact on the Bucharest Stock Exchange (BVB).

Impact is the largest real estate developer listed on the Romanian capital market. The company is controlled by Romanian investor Gheorghe Iaciu, who owns 49% of its shares, and has a market capitalization of about EUR 80 million.

Iaciu took control of Impact in 2013, following a series of transactions on the Bucharest Stock Exchange. He took the company in a poor shape, in the brink of insolvency, and managed to straighten it and to start new projects.

One of its main projects is the Greenfield 2 residential project in northern Bucharest, near Baneasa forest. The money borrowed from Banca Transilvania will be used to finance this project, which is ongoing. Impact announced recently that three apartment buildings would be ready in December this year, and six other should be finalised in the first quarter of next year.

Impact also raised some EUR 18 million this year from its shareholders and other investors, part of which it used to buy a 2.6-hectare plot of land on Barbu Vacarescu boulevard in Bucharest, where it plans to develop a new residential project. The estimated investment for this is about EUR 20 million, which Impact plans to get via another capital increase. The company has already called on its shareholders to approve a EUR 22 million capital increase.

Andrei Chirileasa, andrei@romania-insider.com