Crisis impacts real estate advisors: Regatta 2008 turnover misses target

The company expected 8 million euro turnover for 2008, according to prior forecasts. “2008 was probably the best year in the history of the company, even if we missed the 8-million euro target. The failure to meet objectives was caused by the worsening effects of the financial crisis that we felt since the beginning of last year”, Eduard Uzunov (photo), chairman of Regatta told Wall-Street.

Compared to a year earlier, the real estate advisor reported 25% increase of turnover. “We haven’t sold so many apartments to private investors as we wished. This is why we marked little over 5 mln euro turnover last year”, the chairman added.

The financial crisis that put real estate deals on hold since the second half of last year, has severely dented the business of Colliers International real estate advisor, that fell 17% from prior year. Thus, the company reported 18 mln euros turnover for 2008, versus 21.2 mln euro a year earlier.

Regatta predicts 2.5 mln euros turnover for 2008, half of the one recorded in 2008, on sagging housing unit sales. “We cashed in a mere 150,000 euros in first two months of 2009, 30% less than prior-year period, from the fee afferent to the sale of two-three luxury apartments, priced at 0.4-1 mln euro, and of ten apartments designed for middle class”, Uzunov added.

The company has recently announced it would provide renegotiation services for contracts involving commercial, office and industrial premises, with the help of six consultants. “We are renegotiating lease agreements of few of the leading banks in Romania. Banks require a 30-40% discount of rent”, Regatta chairman stressed.

In Bucharest’s central area, the companies pay a monthly 20 euro/sqm for the lease of premises in an office building.