At end-September 2017, the value of WDP’s Romanian property portfolio came to some EUR 230 million, not counting a planned investment of EUR 40 million for completion of current pre-leased project developments.
According to a press release, to enable further growth in the Romanian property portfolio, WDP has reinforced its capital in WDP Development RO by converting a subordinated shareholder’s loan into shareholder’s equity.
”This new structure implies that the ownership ratio between the two shareholders (WDP/Jeroen Biermans) changes from 51/49 to 80/20 on 1 January 2018. Due to this new partnership between the shareholders and their corresponding participations, WDP fully consolidates this activity in its IFRS statements as at 1 January 2018, instead of using the equity accounting method as in the past,” the release reads.
This lays the groundwork for using additional financing from the Belgian real estate developer to grow the Romanian property portfolio to a value of EUR 500 million by 2020.
WDP notes that this change will not have any impact on operations. Jeroen Biermans will remain General Manager in Romania.
“The reinforcement of WDP Romania ensures that the local team and I will be ready to continue to grow our business and help build the infrastructure to support the Romanian economy,” Jeroen Biermans, General Manager of WDP Romania stated.