Go East

A friendly corporate tax system with a flat rate of 16 pct, buoyant private business and acute demand for manufacturing, logistics, warehouse and retail facilities, have turned Romania into an ‘El Dorado of the East’ for real estate investorsTransactions on the Romanian market last year totalled EUR 5 bln, with the most intense activity taking place in the real estate sector, according to market sources. Poland still remains the CEE leader, however, with real estate investment worth EUR 2.83 bln in 2007. However, in order for any project to be successfully completed, the developer and the investor must be sure to sort out all the legal issues.Securing the land In Romania, the first challenge is the legal, technical and environmental due diligence. Prior to this, one would typically seek to enter into a call option or a pre-sale and purchase agreement with the owner. Under both of these the owner makes a legal commitment to sell. The difference is that under a call option th