Star Residence Invest is liquidating its assets

Star Residence Invest (REIT), a company established as an investment vehicle in real estate assets oriented towards the distribution of dividends obtained from rents, is liquidating its assets, according to a company report published yesterday on the website of the Bucharest Stock Exchange (BVB).

The decision comes as a result of the fact that, currently, the company does not register income from the rental of the property it owns, after last September, RCTI Company unilaterally denounced the rental contract for the 14 apartments and 26 parking lots in the Star Residence Invest estate.

At the beginning of this month, the company informed the market that, between July 30 and August 1, 2024, it concluded five acquisition transactions of some assets from the portfolio, namely four apartments and seven parking lots, the total price being 733,000 euros, VAT included.

"We will continue the efforts to capitalize on the real estate owned, seeking to identify the best solutions in this regard in order to fulfill the assumed BVC", it is stated in yesterday's report of the company from the BVB.

For this year, Star Residence Invest has budgeted revenues from the sale of real estate of around six million lei and a net profit of 1.7 million lei.

At the end of last year, the company announced the conclusion of a transaction for the purchase of a plot of land located in Bucharest, consisting of six lots, with a cumulative area of about 25,000 square meters, for the price of 2.3 million euros plus VAT. At the time of signing the contract, 50% of the amount was paid, the rest of the money to be paid by December 20, 2024.

For the first six months, Star Residence Invest reported revenues of around 93,000 lei, well below the 612,000 lei from the first half of last year, and a loss of almost 66,200 lei, compared to a profit of 376,000 lei, in the January-June period 2023.

In the middle of the year, Momentum Capital from Bucharest had 35.7% of the company, while Ion-Gheorghe Manea owned almost 20% of Star Residence Invest, a company whose stock market valuation is just over nine million lei.