Real estate developer Avrig 35, controlled by businessman Alexander Hergan, a real estate investor with one of the lowest-profiles on the domestic market, is in advanced talks with DEGI, the real estate division of Allianz Group, to sell the Iris Shopping Center project in Titan, which includes an Auchan hypermarket.
The deal was worth approximately 140 million euros, sources on the real estate market told ZF, and buyers would receive an annual yield on investment of around 7 percent in euros.
The project in Titan is spread over an approximately 10 hectare plot of land and comprises the first Auchan hypermarket on the domestic market, with a retail area of 16,000 square metres, as well as a shopping centre, with an area of about 30,000 square metres, which is scheduled to open this summer. The built area of the entire project will be 75,000 square metres and 2,200 parking spots will be available.
The representatives of the two companies could not be reached for comment by the time the story was ready for print.
The deal is DEGI's second on the real estate market, after the Germans, whose capitalisation stands at approximately 9 billion euros, bought three office buildings at the time held by Charlemagne Capital (Millennium Business Center, PGV Tower and Construdava) for 110 million euros last year.
On the other hand, this is Avrig 35's fourth exit on the local market, after the company collected approximately 110 million euros from the sale of several office buildings - the 50 percent stake in Charles de Gaulle Plaza, two buildings in Obor area and 18 properties outside Bucharest. The tenants of the office buildings developed by Hergan include companies like Petrom, Raiffeisen and Vodafone.
Another office development of Avrig 35 is Tower Center in Piata Victoriei, now in an advanced stage of construction.
As for retail developments, Avrig 35's portfolio includes under the Iris brand a project in Pitesti, where an Auchan hypermarket and a store that belongs to the DIY retailer Bricostore have been opened thus far.
The deal with DEGI comes shortly after another German investor, RREEF Real Estate, a division of Deutsche Bank, set a new record on the real estate market in Romania, after it took over, for 340 million euros, the Upground project in Northern Bucharest. The takeover came after a drought of deals on this market in the first four months of the year.
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