27.4.09
Signs of an "economic spring"?
Mentor Finance managed to recruit 15M for a residential project in Romania

Mentor Finance, a subsidiary company of Mentor Group Holdings, has announced the most recent success of the company: The recruit of 15 million Euros for an existing residential project in one of the main cities of Romania.

"Starting with the summer of 2008 all the financial market was in total block. Due to the financial global crisis, we were facing many difficulties in recruiting any loans or credits for real estate projects.
Therefore, we made huge changes in the money recruiting method that will fit to the "today market". Fortunately, the changes were in place and it seems we are starting to see positive feedbacks from the banks and investors" says Osnat Peled, Marketing director of Mentor Finance, who is specializing herself in financing solutions & Investor relations in Europe.

According to the company's statements, the latest recruitment was made following a joint venture between an international fund and a private investment group. The contracts were already signed, but the details remain confidential -regarding all the sides involved in the transaction.
According to the company’s legal department, the parties are not interested in revealing more details, especially the owner of the project, whom intention is to maintain a "business as usual" reputation in front of the existing clients who are facing his project.

"During the last six months, many developers have contacted us asking for assistance in locating a financing solution for existing stuck projects. Due to the international network of business contacts that we have established with funds and private investors, in most of the cases we can grant a solution, both in residential & commercial projects, especially if there are some sales results or pre-lease agreements of the project" says Peled.

The solutions may come from a few directions – a fund, an investor to join in, an international or a local bank, or even combination of the solutions mentioned above.

"In many cases we are modifying the financing structure along with the marketing strategies of the existing project, two basic steps which can achieve a totally new reaction from all the above financial channels" stated Peled.

One of the main signs of the financial crisis is the low activity of foreign investors in Romania.

According to Peled, Mentor Finance has strong connections with funds and investors interested to invest in Romania, in a very low risk approach, knowing the demands is still high, soon to blossom again.

“This is the right time to join low-risk projects at very good prices and yields” says Osnat Peled.

Mentor Finance obtained last year more than 35 financing & loans files in Romania , Bulgaria and Moldova . The company has also stated recently, they represent an international fund seeking for green energy projects with investments over 50M.