Real estate developer Africa Israel, controlled by Lev Leviev, one of the richest businessmen in Europe, has bought the 50% stake owned by US investment fund New Century Holdings (NCH) in Cotroceni Park in Bucharest, sources from the real estate market told ZF.
The international press reported that AFI Europe (an Africa Israel subsidiary) had acquired the stake from its American partner for a real estate project that includes retail and office space, in Bucharest, for 78.8 million euros, but did not specify the project's name or the partner in the deal.
Africa Israel and NCH representatives could not be reached for comment by the time the story was ready for print, but the Israelis have scheduled a press conference for today.
NCH, run in Bucharest by Siminel Andrei, one of the most active buyers of assets in Romania ten years ago, started to sell its Romanian businesses this year, and has already sold the Tricodava plant (42 million euros), its Oltchim shares (7 million euros) and a 14.3% stake in Asirom (17.8 million euros).
NCH received a sum around 10 times higher than the level invested in Cotroceni Park business, according to unofficial estimates, given that the American fund's main contribution was the land on the UMEB industrial site, a factory it had bought for a winding-up price earlier this decade.
Cotroceni Park's shareholders are now Cotroceni Investments Limited, 97.9%, registered in Cyprus, and other legal entities, which own 2% according to the Trade Registry data.
Cotroceni Park will include a shopping complex, four office buildings and a hotel, while the entire project will cover 200,000 square metres. The general contractor of the project is Danya Cebus, another subsidiary of Africa Israel, with work set to take place over approximately two years. Reuven Havar, Africa Israel's country manager told ZF in an interview in August that his company wanted to make around one billion euros in investments on the domestic market.
Another major acquisition made by the Israelis this year was the takeover of the land and assets on which the Laromet plant is located, in Bucharest, in a deal worth 77.5 million euros. On this 15.5-hectare plot of land, the Israeli company will probably develop its most important project in Romania, which will attract investments estimated at around 500 million euros.
The most important investment outside Bucharest is in Arad, where Africa Israel is set to build a shopping complex, in an investment worth 50 million euros.
Africa Israel is one of the biggest groups in Israel, with operations in the US, Russia, Czech Republic, Poland and Romania. The chairman of the company's board of directors and its majority shareholder is Lev Leviev, one of the richest businessmen in Europe, and is listed in the Forbes ranking of the richest people in the world.
The Bucharest shopping complex market is booming in terms of projects, with around ten malls now in the model stage at their developers, which are set to be delivered within the next two or three years. The biggest projects include Baneasa Shopping City, Parklake Plaza, Sun Plaza and Cotroceni Park.
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