Kings Construction Latest Update

Proton continues to be a catalyst in empowering people to be the first, to be pioneers in business, education and community regeneration.

Kings Construction continues to create homes that are fresh and innovative conceptually especially for young Romanian families. Romania as a nation is expanding and developing in scope and pace. However the global credit crisis has had some affect on the Romanian economy with several of the major private sector investments in plants and equipment have been delayed while they find adequate financing. Mortgage rates have edged up in the past 4 months as the Romanian government attempts to control inflation. However, because of the low rate of personal mortgages (3% of the population hold a mortgage) there has been virtually no impact on the personal mortgage sector as opposed to the United States. Jobs continue to be added to the economy, wages are increasing, continuing to create a growing middle class that is determined to improve their housing situation moving from communist built apartments to single family residences. The superheated property market is returning to normal.

In the past few years many Romanians and foreigners were attempting to secure a piece of property regardless of its location. Many people purchased a lot because it was a hedge against inflation and the only opportunity that they had available to them to attempt to increase their net worth. Thousands of lots were sold with no servicing and no hope of servicing in the foreseeable future. As people have become more educated, more astute and more discerning they are looking to projects that will have enduring value. Therefore land values continue to hold and well situated, readily serviceable land continues to increase in value. This makes Kings Construction current and future projects well placed. Our six Town Houses are almost ready with different teams working on the three main areas: (i) Electrical systems, (ii) Interior Walls and (iii) Outside Design. Town Houses 1, 3 and 6 are the most advanced as the owners want to move in as quickly as possible. Of the 14 units we still have 4 more to sell.

Our ambitious goal was to build and sell 14 houses during the period of 2008. On reflection this may have been a little ambitious to go from 2 to 14, however the current learning of our building teams of Town Houses is a reasonably new concept in Romania. We have gained much benefit for the future growth and development of the company. We have negotiated to buy another piece of land in Agigia and that sale has now gone through and we are able to build 48 apartments of modern design, high quality and ideal for singles and first time buyers.

We are thrilled at the current progress in seeing not only our business grow and develop, but the changes that these conceptually new housing options will make on the region and aesthetic environment. The benefit of creating employment opportunities in this region of Romania cannot be understated and as such, we at Proton believe that as Kings Construction continues to create and innovate, their future is bright if not exponential.