ParkLake, a 50:50 Sonae Sierra and Caelum Development joint venture project, has announced the signing of a debt-finance agreement for the shopping centre. The joint venture concluded an agreement for the amount of €83 mln on a seven year term, with a lenders’ syndicate consisting of OTP Bank PLC, OTP Bank Romania S.A. and Hypo NOE Gruppe Bank AG. OTP Bank PLC will act as an agent and OTP Bank Romania S.A. as a security agent. Nestor Nestor Diculescu Kingston Petersen counselled the joint venture through the process, working with CMS Cameron McKenna SCA for the lenders’ legal team.
The debt-finance agreement marks the completion of the financing package needed for the successful development of the project, establishing a landmark transaction for the Romanian market.
Fernando Guedes de Oliveira, CEO Sonae Sierra, stated: “The signing of this financing contract represents an important milestone for the ParkLake project as whole. It is also a clear sign that the banking market is slowly opening again for development finance, and this is crucial for a Company like Sonae Sierra. Our strategy is focused on shopping-centre and mixed-use development, and project-finance is a key component of our financing model. We are confident that we will be able to count on the banking sector to support us in our increased ambition to deliver top quality retail destinations.”
Caelum Development CEO, David Sharkey, commented: "ParkLake has proven to be a successful project investment from the start, with its unique design, fast advancing and distinct quality tenant-mix, and now the conclusion of the financing contract. It is with no surprise that we make another step forward in the project development with construction work well advanced and on schedule for 2016 opening.”
Located in Bucharest District 3, ParkLake represents a €180 mln investment, with plans to open its doors in 2016. The shopping centre will comprise 70,000 m² GLA with around 200 shops and 2,600 spaces of underground car parking. Construction is currently on schedule, with structural works well under way and moving into the mechanical & engineering phase. The District 3 area is one of the most densely populated areas of Bucharest. Close to Titan Lake and Alexandru Ioan Cuza Park, ParkLake will serve a catchment area of 1.5 million inhabitants. The location is well-connected to the public transportation network and lies within walking distance for residents in the neighbourhood.
The shopping centre has managed to lease over 85% GLA in the year prior to opening. The tenancy will comprise a mixed portfolio of occupants, including fashion, accessories, technology, home & furniture, leisure, services, restaurants and a 14-screen multiplex cinema. Hypermarket operator Carrefour will serve as an anchor tenant, occupying 12,000 m².
Source: Sonae Sierra
For more information, see our ParkLake Prominent Project article here.
