Strategy
The Directors believe that investment opportunities in Romanian property are compelling. The country has a substantial need for modern Class A office space, commercial, retail and housing stock. Romania has enjoyed almost eight years of strong and uninterrupted economic growth since emerging from recession in 2000. Further growth should, the Directors believe, be underpinned by Romania’s entry into the EU on 1 January 2007.
Currently, yields on Romanian property are typically estimated to be between 7.5-9.0 per cent., offering a favourable premium when compared with investment opportunities elsewhere in Central and Eastern Europe. It is the intention of the Investment Manager to utilise leverage, where appropriate, to maximize the Fund’s total return. This, combined with borrowing funds at relatively low Euro borrowing rates, and the current attractive investment yields achieved on Romanian property, is expected to generate greater returns for Shareholders than would otherwise be achieved through borrowing in the local currency.
The Company’s original investment strategy was to purchase both income producing office buildings and retail freeholds as well as to seek co-investment projects in the office, retail and residential sub-sectors of the market. Historically, the geographic focus of the Fund was Bucharest, but with up to 25 per cent. of the Fund’s equity available to invest in the regions outside the capital.
Going forward, the Directors intend to continue this focus on office buildings, retail freeholds and residential buildings, but will also seek to include logistics, light industrial and hotel investments where attractive opportunities present themselves. Geographically, the Fund intends to continue to concentrate on the Bucharest municipality and its environs but will consider investing more than 25 per cent. of the Fund’s equity in the regions outside the capital if suitable opportunities arise. After purchase, each property will continue to be actively managed by the Investment Manager to maximise yields in anticipation of the Fund’s exit.
Latest News
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Fabian in the Media
| Director Mark Holdsworth interviewed by The Money Channel's London correspondant |
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| In this interview on CNBC, Director Mark Holdsworth discusses investment in the emerging markets |
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Fabian in the Press
| "Fabian Romania is the new name behind a scheme in the country’s equivalent of London’s Docklands" - Two page article in the September 2008 edition of Property Week. |
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Contact Details
| Fabian Romania Limited | |
| c/o Jersey Trust Company PO Box 1075 Elizabeth House, 9 Castle Street St Helier, Jersey JE4 2QP | |
| Telephone | +44 (0) 1534 700000 |
| Fax | +44 (0) 1534 700007 |
| Fabian Capital Limited | |
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