Romania's richest man has moved to take advantage of conditions in the country's real estate market by agreeing a deal to acquire a specialist property fund.

Oil magnate Dan Patriciu is to pay €50.8 million (£47.2 million) to purchase Fabian Romania, which has an extensive portfolio of residential and commercial property in the country.

The move comes at a time when property prices are falling in Romania - and the fund recently marked down the value of some of its commercial real estate investments.

Obie Moore, chief executive of Mr Patriciu's firm Rompetrol Holding, told Reuters he expected prices to fall further next year, but insisted the market still offered plenty of potential.

"The opportunity in Romania is compelling given its growing economy and high demand for real estate," he explained.

Despite reporting it had marked down the value of some office developments at the end of the third quarter of 2008, Fabian was able to announce its portfolio had increased in value by 3.6 per cent in the preceding 12 months.