Plaza Centers N.V. has announced the acquisition of a new retail-led mixed-use development project in Iasi, Romania. Iasi, the largest city in Iasi County, situated in the north-east of Romania, has a population of over 340,000 and is located within a larger catchments area of 820,000 people. The estimated development budget for the project is €115 million.
The development, which occupies a plot of 46,500 m², will encompass 54,000 m² of retail space, 15,000 m² of office space and 46,200 m² of parking, providing 1,400 spaces. Additionally, the terms of the acquisition provide the option to develop 70,000 m² of residential accommodation on the site, which the Company may consider selling to a third party. The Company anticipates that the center will be completed in 2010.
This project is Plaza Centers' fourth development project in Romania since it commenced operations in the country in November 2006. The Company's other schemes in the country include its schemes at Timisoara, Miercurea Ciuc and, most significantly, its landmark Casa Radio scheme in the heart of Bucharest comprising more than 500,000 m² of built area including a shopping and entertainment center, residential and office space, a hotel, casino, hypermarket, convention and conference hall and parking facilities.
Commenting on the acquisition, Ran Shtarkman, President and Chief Executive Officer of Plaza Centers, said, "The development of this major mixed-use scheme in Iasi will provide the city with a prestigious and exciting new shopping and entertainment destination. We look forward to welcoming a range of high quality retail and commercial tenants to the center.
"In acquiring our fourth significant development project in Romania in only nine months, we are demonstrating our clear belief in the country's prospects. It is a market that holds great opportunity for us to capitalize on our specialist development expertise gained over many years of successful development across Central and Eastern Europe and, in so doing, deliver on our strategy of value creation both for our clients and our shareholders."
Source: Plaza Centers
