Full Description

The Location Galati is a city located in eastern Romania, the capital city of Galati County on the banks of the Danube, very close to Braila forming with it the Cantemir metropolitan area. In 2006, according to the official Romanian census, the city had a population of 295,000 people, Romania's 7th largest city. The Mittal Steel in Galati is the largest iron and steel plant in Romania, state-owned until 2001. It is still commonly referred to under the old name Sidex. The country's largest shipyard is found in Galati, benefiting from the good access to the Black Sea through the Danube and the short distance between its facilities and the Mittal Plant. The geo-strategical situation of the Galati county, at the cross-road of the main commercial ways, the existence of the largest complex of river ports on the Danube, the high qualified labour force are serious incentives for foreign investors. The restructuring and privatization process of the large industrial, commercial, agricultural and service companies, offer numerous opportunities to the investors. Currently, like the majority of the towns of Romania, Galati lacks of shopping centres to meet the needs of the local population. The Land for Sale The land that offers for sale for the development of a shopping centre is located near to the Danube and the center of Galati, in an area currently under development. The land is an nearly perfect rectangle on a surface of 11,070 square meters. It is located next to a residential complex of several hundred apartments and a sports complex with 3 tennis courts. There are 2 openings on the road. All utilities are already in place: the water pipelines, the gas and electricity are located directly on the land. Located in an intra-urban area, this land is ideal for the construction of a commercial center. We already obtained all the authorizations necessary for the building of a shopping centre from the municipality of Galati. The project of the mall is already approved by the town hall and we have all the acts necessary for the completion. Therefore the future purchaser can begin the building of the shopping centre right after the acquisition of the land. This land of 11,070 sqm is for sale at a price of 695.6 euros per square meter, that is to say a total of 7.7 millions euros. Our lawyers can provide, on your request, the property titles so that you can proceed to your steps of due diligence. By taking in account the cost of acquisition of the land, the afferent notary expenses and the development costs, this land is an excellent medium-term investment. The Mall Project The project Galati has been approved by the municipality of Galati and the data presented below is in line with the certificate of urbanism in our possession. The PUD (Urbanism plan) has been approved and the land offers a POT (Earth footing) of 80% and a CUT (coefficient of ground usage) of 2.4. o The total area of land is 11,070 sqm. o The earth footing is of 80%, representing a surface of 8,856 sqm. o The CUT (Coefficient of ground usage) is of 2.4. o Number of floors: 2 Basements + Ground Floor + 2 Floors. o 1st basement: ½ garages and ½ supermarket and 2nd basement: garages. o Total area that can be built over the ground: 26,568 sqm (Ground floor + 2 Floors). o Total area that can be rented: 23,247 sqm (total area that can be built over the ground + the ½ basement of supermarket - 25% for the common spaces: 30,996 - 7,749). o Strategy: Construction and rent o Total area that can be built (over and under the ground): 44,280 sqm. o Approximate construction cost: EUR 24.35 million (44,280 sqm x 550 € per sqm). o Price for land: EUR 7.70 million (11,070 sqm x EUR 695.57 per sqm). o Additional various costs: EUR 0.50 million. o Approximate cost of the project: EUR 32.55 million. o Exit strategy: 2 years. o Minimum area that can be rented: 23,247 sqm. o Approximate price for the rent in the respective district: EUR 18 per sqm. o Annual profit from rent: EUR 5.02 million (23,247 sqm x 18 € per sqm monthly x 12). o Approximate total investment: EUR 32.55 million. o Annual rental return of about 15.42% per year. After calculating the incomes obtained from the rent, the investment's value will be amortized within 5 years and 6 months. Concerning all the building work to be carried out on this land, from providing services and utilities until the development of a project of a residential complex, the experts can assist you from the elaboration of the project until the marketing. We can also handle all your affairs with the local authorities, notaries and banks. If you wish further information on this land, do not hesitate to contact us.