Plaza Centers N.V. has announced that it has entered into an agreement to secure a circa 24,000-m² plot in Kragujevac, Serbia. Kragujevac is a city of 180,000 inhabitants. It is the administrative center of the umadija district and the fourth largest city in Serbia.
Plaza plans to build a new shopping and entertainment centre on the Site, with a total built area of 35,000 m², plus 875 parking spaces. The total cost of the development is anticipated to be approximately 55 million.
The acquisition represents Plaza's second transaction in Serbia and a further step in its strategy to consolidate its position in the region of South Eastern Europe which it considers to offer strong potential.
Commenting on the acquisition, Ran Shtarkman, CEO, Plaza Centers N.V. said: "We are delighted to have been able to identify and secure a second development project in Serbia so soon after our first transaction in Belgrade was announced in August.
"Serbia is poised to experience strong economic growth which, we believe, will generate strong demand for large-scale, mixed use developments from commercial occupiers and visitors alike. This, combined with growing investment interest in institutional grade commercial property assets in Serbia from international investors, should leave us well positioned to deliver strong returns to our shareholders.
"In addition, we are excited to be taking an active role in the delivery of new commercial and cultural destinations for Serbia, both in Belgrade and other leading cities in Serbia such as Kragujevac."
Source: Plaza Centers