Austrian investment fund Immofinanz, the biggest buyer on the domestic real estate market, will enter the retail segment with a project exceeding 100 million euros. It has already spent more than 130 million euros on office projects.
Immoeast, a division of the Austrian's biggest property fund Immofinanz that handles Central and Eastern European operations, could begin construction of a project that includes a mall exceeding 30,000 square metres, 14,000 square metres of office space and a hotel close to the Constanta harbour this year, sources on the real estate market say.
The project is put at approximately 100-120 million euros, the sources add, and will be developed in several phases.
Immoeast bought 75% in Harborside Imobiliara in the first half of 2005, the company that will develop the project, the fund's annual report reveals.
The manager of the Harborside Imobiliara is Brit Andrew Stear, whose portfolio includes Iride Business Park in Bucharest, according to the latest available information. A company held by Christian Hiver, who was involved in beginning and selling the Orhideea shopping complex in the capital city and the Tom shopping complex in Constanta, is also participating to this project. The representatives of the developer had not made any comment by the time the story was ready for print.
Several projects are now in various development stages in Constanta. French Bertrand Catteau, owner of the Orhideea shopping galleries in Bucharest, has recently finished a 40 million euro investment in the Tom shopping complex through his Catinvest company. Also this year, the Neocity group announced it would start work on the City Park shopping complex, a project put at 50 million euros.
Immoeast has been the most aggressive player on the domestic real estate market over the last few years.
The Austrians officially entered the market in 2004, when they bought the Iride Business Park for 63 million euros. Iride was developed by BPD Property Development and the Romanian Post Privatisation Fund managed by GED Capital Development. Immoeast has been focusing on acquisition of office projects since then.
Two of these buildings were developed by a company of Israeli investors, Delta Intensiv Trade and were leased long term by Vodafone Romania mobile telephony operator. The Austrians also bought the Bucharest Corporate Center (BCC) office building, which currently houses the headquarters of the Generali insurance company. The total value of the four acquisitions exceeded 130 million euros. According to the company's estimates, Immoeast currently owns more than 200,000 square metres of office space.
The lack of completed projects, however, has driven the investment fund to buy some projects whilst still in the model stages. Immoeast owns 75% in the Baneasa Airport Tower project, which is currently under construction and will buy the rest of the shares from the developer, Germany's Valueroi Grup upon completion in 2007.
The Austrians also own shares in the Otopeni Logistics project (a logistic platform) and have recently announced they will invest 130 million euros in the Jandarmeriei Office (40,000 square metres of office space to be completed in 2009-2010) and Jandarmeriei Residential (a 360-strong housing unit project in northern Bucharest).
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