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Developers of Bucharest's biggest mall seek 400 million euros

Portuguese real estate developer Sonae Sierra and the Irish at Caelum Development, co-developers of the Parklake Plaza project in Eastern Bucharest, in Titan, have started to seek the funds they need from banks - over 400 million euros, to begin construction of the biggest shopping mall in Bucharest, with the investment amounting to almost 600 million euros.

'Our target is to secure financing for at least 70 percent of the total value of the investment, the rest will be contributed by shareholders. Over the last few years, we have worked with only three or four foreign banks such as Eurohypo and Societe Generale, groups which we are already in talks with,' daily Ziarul Financiar quotes Jorge Morgadinho, expansion manager at Sonae Sierra, as saying. So far, Africa Israel has received the biggest loan to develop a mall - 234 million euros, in order to build AFI Cotroceni Park. Given the international financial crisis which began a year ago, many foreign and Romanian investors are now complaining about how difficult it is for them to get the loans they need to develop real estate projects. The cost of loans has substantially increased, and the money is no longer that easy to find. 'Talks with banks are more difficult, and the costs coming with loans are much higher, but no mall can be developed without funding, ' Morgadinho explained. Earlier this year, the Portuguese bought from the Irish 50 percent of the company which is developing the Parklake Plaza Mall, in Titan. They hope to be able to get all the necessary permits by the end of the year and to start construction works, if they get funding. The projects Sonae Sierra is involved in on the Romanian market at the moment entail some 600 million-euros investments, with even more planned for the future. 'We intend to start at least one more project outside Bucharest this year, in a city where we can establish a dominant position, ' Morgadinho added. The Portuguese company currently holds 48 shopping centers in Portugal, Spain, Italy, Germany, Greece, Brazil and Romania. Sursa: http://www.rompress.ro

Tags: euros million biggest

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