Plaza Centers N.V. has acquired a site in Slatina, in southern Romania. The site totals approximately 20,000 m² and is located in the north-western part of Slatina. Plaza plans to build a shopping and entertainment center with approximately 25,000 m² of built area, plus 450 parking places. In addition the site comes with an option to develop approximately 10,000 m² of residential accommodation, which the Company may consider selling to a third party.
This project is Plaza's fifth development project in Romania since it commenced operations in the country in November 2006. The Company's other schemes in Romania include projects at Iasi, Timisoara, Miercurea Ciuc and, most significantly, its landmark Casa Radio scheme in the heart of Bucharest, which comprises more than 500,000 m² of built area including shopping, leisure, office, conference facilities and parking places.
Plaza's total investment in the Slatina scheme is expected to be approximately €24.5 million.
Commenting on the deal, Ran Shtarkman, CEO, Plaza Centers N.V., said, "Slatina is a vibrant city with around 80,000 inhabitants and is considered a major city in the county of Olt which has a population of 520,000. It has a strong industrial base, with companies such as Pirelli Tyres located there. However, it is lacking the sort of high quality retail space that we specialize in developing. Given that demand for prime retail space in the city is strong, we are confident that our latest Romanian project will generate strong interest from potential occupiers.
"This acquisition is Plaza's fifth transaction in Romania since November 2006. We believe the Romanian property sector is set to enjoy a long period of steady growth, backed by growing demand from occupiers and increasing interest from international investors in institutional grade assets in the region."
Source: Plaza Centers