The developer of "Seasons Residence" is bankrupt

• In 2007, Gespi Investments was announcing an investment of 45 million Euros

• The buildings are only worth 9.3 million Euros now

The developer of the real estate project Seasons Residence, Gespi Investments SRL, was declared bankrupt two years ago. The news wasn't made public earlier because several creditors disputed the decision to declare the company bankrupt. In 2007, the developer announced that it would invest 45 million Euros in this project, which was located on the road to Poiana Braşov. The bankruptcy was requested by Piraeus Bank, which financed the project. But now, the creditors are set to meet to decide the starting price for the auction. According to the evaluators, the market value of the buildings of this residential complex is 9.3 million Euros.

The project benefited from remarkable advertising. That is why, only one year after it was announced, 70% of the apartments which were set to be developed in the first stage of the project, which was scheduled to be completed in April 2010, had already been preordered, according to the company's announcements. Still, only 19 pre-contracts were signed, worth 10.5 million lei. Piraeus Bank needs to recoup about 40 million lei from this project.

The first stage of the project was supposed to comprise 180 apartments in eight buildings, 6 to 10 floors high each. The highest number of pre-contracts was signed for three-room apartments with a total surface of 51 sqm, which had a view on the old center of Braşov. And that, despite the fact that they were extremely expensive. A studio was priced at approximately 100,000 Euros plus VAT, whereas a two room apartment cost 134,800 Euros plus VAT. 3-room apartments started at 192,500 Euros and could go as high as 255,300 Euros plus VAT, and a 4-room apartment cost 280,000 Euros plus VAT.

The complex was designed in such a way that it would only have two apartments per floor, with built surfaces ranging between 53 and 181 square meters, and it comprised a pool, fitness room, underground parking spots and children's playground.