Hagag to invest 20 mln euro in Romanian historical building upgrade

The real estate developer has received the urban planning certificate needed in order to move forward with the building permit that will authorize execution of construction works for the restoration and consolidation of Stirbei Palace, it said in a press release.

The company's representatives have requested an additional approval in order to rebuild the annex that used to house a former carriage shed.

The exterior image of the palace will be completely restored, the facades brought back to their original appearance, while the interior image will be reconstructed according to historical plans, the company said.

With a built-up area of 2,933 sq m, the history of the property goes back to the last decades of the 18th century.

Following its reintroduction into the public circuit, the palace will host a high-end gallery for internationally renowned premium brands, as well as a modern space dedicated to cultural events and art exhibitions, Hagag said.

"We are convinced that reviving the Palace and reintroducing it in the commercial circuit will bring relevant image capital to Bucharest, not only at community level, but also at international level," Hagag Group chairman Yitzhak Hagag said.

Hagag Development Europe is specialized in residential and commercial projects in Romania. The company is involved in the acquisition, development and renovation of several buildings and projects involving more than 200 million euro invested in Bucharest's top development areas.

In Ferbuary, Hagag said that it has bought an office building in central Bucharest for 9 million euro.

Last year, Hagag began works on its largest residential project in Romania, H Pipera Lake. The total investment in the project is estimated at 90 million euro.

Also last year, the real estate developer said it has obtained the building permit for the upgrade of the H Victoriei 139 residential building in Bucharest. The budget allocated for the consolidation and modernization of the building is 10 million euro.

($ = 0.8875 euro)