REDEVCO Europe has agreed terms to set up a joint venture company with EMCT Romania, one of most reputable local developers in the Romanian real estate market. The new company, to be named ROMANIAN Retail Developments (RRD), will begin operations at the end of September 2007.
REDEVCO began exploring the Romanian real estate market in mid-2006 and showed its commitment to the market by opening an office in Bucharest on 1 January 2007. This office will now serve as REDEVCO's investment office.
Jörg Bitzer, Managing Director of REDEVCO Central Europe, commented, "Romania's commercial real estate market is booming. The fact that Romania has the lowest per capita shopping center space anywhere in Europe shows clearly the opportunities for high-quality shopping center development in this new EU market."
The new company will focus on developing projects of c. 25,000-100,000 m² GLA in some of Romania's most important and attractive cities. Total investment over the next five years is expected to exceed €500 million.
Commenting on the agreement, Jaap Gillis, Chief Operating Officer of REDEVCO Europe, said, "There is a strong synergy between our companies. Now we can combine EMCT's local knowledge with the international expertise of the REDEVCO team. This will give us access to the best possible local market knowledge and allow us to create the most sustainable retail developments, incorporating local needs and local market usage. REDEVCO also has its own concept (Redevconcepts) and research departments. RRD's mission is to develop shopping centers that support REDEVCO's strategy. We have chosen EMCT Romania as our partner because of the company's impressive track record in the field of retail development in Romania."
Michael Richard, EMCT's General Manager, said, "A joint venture with REDEVCO is an opportunity to enrich the Romanian retail real estate landscape by developing shopping centers at the highest international standards. Based on EMCT's portfolio and combined know-how, both local and international, the new company, RRD, will position itself as a trendsetter on the Romanian commercial real estate market. EMCT Romania is one of the largest operators in Romania and it is important for us to collaborate with market leaders in long-term partnerships. The agreement with REDEVCO will further enhance EMCT's transition to the next level and introduces RRD as one of the most important players on the market."
It is intended that RRD will develop primarily for REDEVCO's own real estate portfolio. The current projects, Sun Plaza Bucharest and Siret Plaza Galati will continue to be developed by EMCT Romania.