Plaza Centers, developer of the Casa Radio (Radio House) project in Bucharest, intends to buy another three plots of land by the end of this year, where it plans to develop shopping centres.
"We have a team looking for opportunities in cities with over 100,000 inhabitants where, preferably, there is no competition. We want to build malls as near to the city centres as possible, and intend to buy seven plots this year, which I believe is still achievable. Within five years, we want to reach 15 malls in Romania," said Luc Ronsmans, the company's country manager.
Israeli company Plaza Centers is the majority shareholder of the Dambovita Center project, conducted on the platform of the former Radio House in Bucharest, and also holds land in Iasi, Timisoara, Slatina and Miercurea-Ciuc, which will be used for other developments. In addition, Bacau, Sibiu, Cluj-Napoca and Craiova are among the cities targeted by the company for new acquisitions.
"Works on the first project outside Bucharest will start next year in Miercurea-Ciuc, where we own a building, within the structure of which we will develop a shopping centre. In Timisoara, we will start demolition works in the coming days, and begin construction in 2009," added the Plaza Centers representative, detailing the company's investment programme.
Plaza Centers, a subsidiary of the Israeli company Elbit Medical Imaging, specialises in developing shopping malls, with a portfolio that includes 23 multi-functional centres already developed and sold.
The Miercurea Ciuc-based project will include a 16,000 square-metre shopping centre, with an investment worth approximately 16 million euros. In Timisoara, the investment will amount to 60 million euros, and will comprise of a shopping centre, and possibly residential and office space.
"For projects outside Bucharest, we are working with an 11-13% annual profit margin in euros. Usually, we develop a shopping mall, operate it for a year, or a year and a half, and then sell it," Ronsmans stated, explaining the company's strategy.
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