CERTION announces the sale of first 1 million euro penthouse in Olimp
Oct 25, 2022
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As a premiere on the Romanian market, CERTION launches the luxury real estate partitions, a product available exclusively for properties within its projects developed on the Romanian seaside or in the mountains.
"The segment of luxury properties is an exclusive one. Basically, until recently, only big investors could get access to such properties. Through the launch of luxury real estate partitions, these properties become available to a larger number of co-investors, who can get the benefits of such a purchase, both from a real estate as well as from a financial point of view", said Cătălin Scripcaru, CEO & President CERTION.
Access to the luxury property market is possible even when the available capital is insufficient, or one does not want to allocate a large amount in a single property. This is where real estate partitions come in, a concept initiated in the United States of America in the early 90s. The basic idea behind real estate partitions is that people don't want to buy a luxury property outright. Real estate partitions refer to owning such a property together with other co-owners.
“Sure, you can buy a luxury property in co-ownership with your best friends or other family members. Unlike the other properties purchased by sole owners, luxury real estate partitions based on the concept of shared-ownership, offer us, in the same budget, the possibility of diversifying our possessions, therefore also of the risks inherent in real estate purchases", explained Gabriel Alexandru, CFO CERTION.
The package offered to the future owners includes, as protection against inflation, a guaranteed annual rent provided by the dedicated hotel operator, Loyal Paladin, calculated as a percentage of 7% of the sale price expressed in euros. For example, for a real estate partition of 44,000 euros, the rent received by the co-owner is 3,080 euros annually.
"Thus, the co-owners will benefit from a stable passive income, having the possibility to sell their owned partitions or to access the buy-back option offered by Loyal Paladin, the operator approved by CERTION", added Cătălin Scripcaru.
"The difference between the concept of timeshare and shared-ownership must be understood very well. In the first case, you only acquire the time allocated to the use of a property. In the second case, however, you become a co-owner of the respective property, with all the related benefits", Alexandru explained.
According to Gabriel Alexandru, from the point of view of the generated income, there are two types of real estate partitions: real estate partitions in private residences - with closed circuit, for own use exclusively, without income, and real estate partitions in hotel suites - with open circuit, for mixed use, with fixed or variable incomes. However, both types of luxury real estate share purchases have the advantage that they can be successfully used as a long-term inflation shield.
In October, the list of private luxury residences and hotel suites to be sold by CERTION through the real estate partition system includes two penthouses, one in each of the hotel and branded residence projects, GALILEO and VOGH Olimp.
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About Certion
CERTION was created in 2015 by Cătălin Scripcaru, Cezar Ionescu and Bogdan Căruntu, top professionals in the industry, with recognized experience in the development of real estate projects. Over the past 20 years, CERTION's founding team has amassed an impressive portfolio of projects, all successfully initiated, developed, and delivered. With an emphasis on challenging and visionary projects that go beyond the scope of most developer-initiated projects, CERTION has an approach designed to create a shared vision with communities and deliver both social and commercial value.
About Loyal Paladin
Loyal Paladin is a company that entered the local market in the first half of this year and specializes in luxury hospitality management. In Romania, Loyal Paladin will operate the largest alliance of branded residence hotels. The company's portfolio will include the hotel brands VOGH Olimp, GALILEO, PHAROS, LAGO-SOLANTIS from the southern part of the Romanian seaside and JAKOB SONNE from Poiana Brașov. Loyal Paladin is currently the operator of the EPICO villa in Olimp (epico.ro) and of the MOUSSAY Beach Club Olimp (moussaybeachclub.com).