Business is still booming in the Eastern European property market if Bermuda Stock Exchange listed Fabian Romania’s third quarter results are anything to go by.

The company boosted its Net Asset Value (NAV) per share by 3.8 percent over the second quarter to €1.607 ($2.274) with a reported increase of 18.5 percent for the year to date.

Meanwhile the Romanian property market, where the firm does most of its business, has not been greatly affected by the worldwide credit crunch.

“The sub-prime lending crisis overseas has had a limited impact on the Romanian property market,” said director Mark Holdsworth in a statement.

“There is anecdotal evidence that some investors whose investment strategy involves high levels of gearing, have stepped back from transactions at the more speculative end of the office investment market.

“In addition, some overseas developers seeking to enter Romania or add to existing land holdings, have become more cautious in the size of schemes they are seeking to develop. Otherwise, most banks appear not to have fundamentally changed their key lending parameters such as loan to value, debt service coverage ratios or amortisation periods.”

Adjusting the current NAV for the estimated future development profits of €0.535 per share indicates a potential future NAV of €2.142 per share, representing an increase of 11.4 percent over the second quarter and 38.6 per cent for the year to date.

Further yield convergence for the company’s fully let office buildings rose to 6.8 per cent at the end of September and in total, nine investments were executed or committed, with 62,850 square metres of lettable office space in Bucharest secured together with 443 residential apartments.