Veranda shopping centre, situated in the Obor area in Bucharest, has attracted funding of €25.5m from Raiffeisen Bank SA and Raiffeisen Bank International AG for the development of the project. In this transaction, Veranda’s owners were assisted by the law firms PeliFilip and Freshfields Bruckhaus Deringer, while the financing banks were advised by lawyers from CMS Cameron McKenna.
Silviu Toma, project finance director at Raiffeisen Bank, commented: ”Raiffeisen Bank was and continues to be a trustworthy partner in supporting the economic environment in Romania. We want to finance feasible projects, realized by reliable developers and that can play an important rol in transforming the big cities, as in the case of Veranda.”
Andrei Pogonaru, representative of the owner of Veranda project, said: "The signing of the financing agreement confirms the value of the project and its positioning among the top investments in the retail sector in Bucharest. We are very happy with the partnership with Raiffeisen Bank and with the expertise of their team in structuring such a transaction. Together we have made possible the revitalization of an area with tradition in trade, with a large number of residents and with a retail and entertainment offer tailored to their needs."
Alexandru Bîrsan, partner, PeliFilip, added: “As a lawyer, your work is more pleasant when it has a positive tangible result. Veranda is a beautiful project, its construction is progressing well and the completion of the financing solution confirms a real success story. I am eager to go shopping there this autumn, to be the client of my clients.”
The loan agreement for Veranda shopping centre was signed in February 2016 to finance part of the total costs necessary to develop the project. According to the agreement, it provides the possibility to increase the funding up to €28.5m. The project will benefit from a total investment of €60m.
Veranda shopping centre is developed by Prodplast Imobiliare in the Obor area and currently has an occupancy rate of 70%. The project has a total leasable area of almost 30,000m², with main anchors Carrefour hypermarket (approximately 10,000m²) and H&M (over 2,000m²), alongside over 100 shops, a food area, 1,200 parking lots and a wide green space totalling over 15,000m².
The project, set to be delivered in Q4 2016, will be organised on two floors, and due to its modular structure will offer the possibility to be extended in the future. Currently, the foundation of the building was finalized and the works are continuing with the structure of the project.
