Technical Olympic deepens footprint in Romania’s Residential Sector

Listed company Technical Olympic recently announced the acquisition of a 30% stake in Linam Ventures through its Cyprus-based subsidiary TO Romania Ltd. Linam Ventures, through its wholly owned Romanian subsidiary Linam Investments SRL, controls a 32,056-square-metre plot of land in the Tei Lake area of Bucharest, one of the Romanian capital’s most sought-after residential development locations.

Technical Olympic’s management estimates that the specific location offers significant potential for capital appreciation, as the property is situated next to Tei Lake, in an area where the availability of large plots is limited and demand for high-end residential properties remains strong.

According to statements by group chairman George Steggos, the residential units to be developed as part of the project are expected to be marketed at prices ranging between €4,500 and €5,500 per square metre, reflecting the continued upgrading of Bucharest’s residential market and strong demand for premium housing products.

The total consideration for the transaction was set at €8,760,079, based on an independent valuation prepared by APC Audit Tax Advisory Limited, as the transaction was conducted between related parties. The shares were acquired from the Cyprus-based companies Suntopia Ltd and Assonance Ltd, which are controlled by George and Andreas Steggos, the listed company’s principal shareholders and executive officers.

For this reason, the special procedure provided for under Law 4548/2018 regarding related-party transactions was activated.

In its latest update to shareholders, the company informed the investment community that the ten-day deadline provided under Article 100(3) of Law 4548/2018 for shareholders to request the convening of a General Meeting regarding the approval of a related-party transaction had expired without action. Since no shareholder request for a General Meeting was submitted within the statutory period, no approval decision by the company’s supreme corporate body is required, and the transaction may proceed in accordance with the applicable regulatory framework.

The investment forms part of the group’s new strategy, under which it has gradually shifted its investment focus in recent years from its traditional activities towards real estate, shipping and renewable energy projects, leveraging the strong liquidity position created following the sale of the historic Porto Carras resort complex.

Alongside investments in Greece, where it is evaluating new residential and commercial projects, Technical Olympic aims to establish a presence in markets with higher growth rates than the Greek market. Romania represents a key example, as Bucharest’s residential market continues to be supported by strong domestic demand, rising incomes and limited supply of new housing in prime locations.