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| home / news / Irish businesspeople invest in Romania |
Irish businesspeople invest in Romania |
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| Real estate and IT&C development engines Romania's EU accession offers new possibilities to demonstrate its potential. A special relationship is consolidating between Romania and Ireland, EU's member with the fastest development rate. The Romanian economy showed a strong growth during the past few years, GDP bounced back and this year is expected to rise by 6-7%. The stable economic climate signs were anticipated by the Irish businesspeople, the first ones to show interest in Romania since 1990. Romania shows at this moment the biggest European potential for fast and high profit rate business. The interest areas are multiple, one of the most attractive remaining real estate. „The Irish businesspeople have a culture, a certain education regarding real estate investments thanks to the high yields obtained in other countries, for the last 30 years. Due to their financial power they look for emerging markets where the money can be placed with higher yields than in the mature market states,” said Eduard Uzunov, CCRI president. Tis is the reason why between 2003-2004 the Irish investors started analysis and entering the Romanian market. Some of the best known acquisitions were made by investment funds Balleymore and Moritz Holdings. Another important Irish investment is Brasov Business Park, belonging to Ravensdale Investment. In addition on the Romanian market Irish Holdings entered, bringing their international experience from Ireland and the United Kingdom. In the newcomers category we also have Victoria Limited which develops in Bucharest a class A office project with a market value of over 120 million Euro. „Besides these, already known in Ireland and Romania, there are numerous other investments realized by Irish businesspeople which obtain from their Romanian real estate developments a profit range between 20-30% depending on the size and type of development. The investors can get yields between 7-9% depending on the investment type, city and taken risk,” underlined Uzunov. Such yields are over the European average and – most important – over the yields obtained in countries with accentuated real estate development, attracting during the past 15 years large size investments. Some examples are Spain, the United Kingdom, Poland and Hungary. Once big size groups entered the market, but also medium size investors, the market is getting more and more attractive for the small investors. One has to specify that the Irish small size investors look for investments between 300,000 – 1,000,000 Euro, showing their financial power and the fact that they are a market segment which shouldn't be neglected. „Depending on the budgets allocated for investments and the risk taken, these investors can go from buying some apartments in the new developments to acquiring significant land surfaces in Bucharest and its surroundings, but also properties generating income as they are already rented.” CCRI, having as honorary president HE Mr. Padraic Cradock will have between 14-19th of February a work visit in Ireland. Its representatives will partake in a seminar organized by the Romanian Embassy together with Galway Chamber of Commerce and Euro Info Centre Galway, as well as at The Sunday Business Post's Dublin Property Expo 2007, the most prestigious genre event. „It is the best opportunity to directly present our business partners and potential ones some of the most profitable offers in the area that made Romania know at a global level. Of course we're not focusing just on real estate. Two other very interesting directions are IT&C and alternative fuels (ex: organic fuel),” Uzunov stated. Found at the crossroad of three big markets – EU, ex-Soviet counties and Middle East – Romania promises to undergo the same evolution as India and Ireland in IT&C. The field is developing dynamically and with innovation, based on a long maths and informatics tradition. Ten years before Norbert Wiener, the genius Stefan Odobleja set cybernetics' milestone in his work „Consonantal Psychology”. In addition the IT research history includes the successful first Romanian computer and computer network no matter the obstacles existent in the communist regime. Talking about Romania's position in the global IT&C industry scenery, Mr. Florin Vrejoiu, ARIES vice president, told us that Romania proposes a unique combo of advantages, doubled by a skills' mix of the young specialists; we are talking about IT&C skills, multilingual abilities and specialization in a technical or economic area. The most important advantages are: - maths and informatics tradition - Western companies' culture - exceptional geographic position which translates into market access - proficient educational system - best quality human resource - country renowned for the number and quality of international languages skills the specialists have - proficient and dynamic companies - Governmental support for IT&C - pool of multinational companies All these statements are supported by international studies and statistics. Discussing the human resource one can see that in an „all time” top of maths and informatics Olympics Romania is among the first three in the world. The same good place we find in BrainBench studies made on the number of specialists with IT&C certificates. In addition, according to World Electronics Forum (Paris, 2000), in 2008 Romania will be the only specialists' source in Europe. Some of the most important companies such as Oracle, Alcatel, Infineon, Siemens, Adobe, Katrein, Motorola, Alvarion Breze, Intel Capital are already developing profitable activities, insured by the opportunities in Romania. According to their statements, Romanian specialists are proficient n all implicating creation, the companies' investments thus being able to materialize in excellent research and development operations. „For example Romania is the most advanced Eastern European country in chip design (the design of the newest and advanced electronic components)," underlined Uzunov. We invite all Romanian and other nationalities businesspeople to directly contact CCRI. We offer them contact with the most interesting Irish companies, as well as we offer the Irish the best investment and business development fields in Romania,” said CCRI's president. CCRI is a member of the Union of Bilateral Chambers of Commerce and Industry in Romania, thus offering business parteners an important advantage. The union's members have a solid reciprocal support politic which eases the access to all chambers' data bases, members and partners benefiting of a larger palette of business opportunities. The bilateral chambers' activity is supported at the highest level. The Romanian president, Mr. Traian Basescu, appreciated the role these organizations have as promotion instruments for efficient trade relations and underlined, at a meeting with the Union representatives that took place last year at Cotroceni Palace, the need to develop the business environment in the legislative predictability context, especially in fiscal areas. He showed trust in the fact that Romania will see a time of spectacular economic growth, tendency which will be consolidated during the next seven years through the structural funds allocated to Romania. The president exemplified that the 3,6 billion Euro to come during the first three years of accession will be mostly spent in infrastructure projects in transportation, rural development and environment. According to ONRC (national commerce registry) between December `90 – June 2006 some 394 firms with Irish participation were registered. From the point of view of the firms' number, the Irish have the 30th place as investors in Romania. From the perspective of strong currency equivalent, they rank 32. CCRI was created keeping in mind Romania's economic development and its EU accession. |
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