Iulian Dascalu, owner of Iulius Group company, the most important shopping centre developer domestically, does not regret not having sold the shopping centres part of his portfolio when the market was up, but considers taking this step in the future, when prices probably return to last year's levels.
"In all the eight years during which I've built and operated malls, I've received many interesting proposals. Year 2007 and the start of 2008 were rich in offers coming from foreign investment funds. I do not regret not having sold so far, but I'm not ruling this out for the future," Dascalu stated.
The businessman owns four shopping centres under Iulius Mall brand domestically, in Iasi, Timisoara, Cluj-Napoca and Suceava, through which he controls around 15% of the domestic mall market. However, the portfolio is hard to assess at this moment as no deal with a shopping centre has been sealed domestically in recent months.
Still, consultants consider that if a mall could be assessed at 15 times the annual profits last year, at present, this indicator is down to around 12 as a result of the crisis, namely an annual investment return of 8-8.5% per year Thus, against an average monthly rent of 20 euros/square metre, the value of the four shopping centres Dascalu owns goes beyond 500m euros. However, the evaluation of the company should also take into account loans contracted for operational and underway projects, amounting to 370m euros, with Dascalu as one of the most indebted local entrepreneurs.
The businessman in 2000 opened the first modern shopping centre outside Bucharest, in Iasi. Meanwhile, the centre has undergone another two modernisation processes. The centre of Iasi was followed, five years later, by the project in Timisoara, the one of Cluj-Napoca in 2007 and Iulius Mall Suceava was finalised this November. Dascalu can be included in the category of domestic entrepreneurs who have bet on a new business model.
The company's plans do not stop at Iulius Mall network, with Dascalu building a mixed project in the centre of Iasi. Palas project entails 250m-euro investments and is due to be finalised in 2010. Moreover, the company is also likely to expand Iulius mall network, for which it targets large cities.
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