British real estate investment fund Dawnay Day Carpathian has acquired a 19,400 square metre area of land in Cluj-Napoca, on which it intends to develop a project that will include retail space, offices and perhaps even a hotel, with investments estimated at 60 million euros, the company announced.
The land, situated in a central area of the city, cost 14.3 million euros, almost 750 euros/square metre. "Calculated at a return on investment of 7% per year, in euros, the estimated value of the project, on completion, is put at 111 million euros," explained Dawnay Day representatives.
The project, which will start construction in March 2008 and is scheduled for completion in the second half of 2009, is the second project of the British company to be based in Cluj-Napoca. The most important Atrium Center shopping centre developed by Dawnay Day is located in the city situated in the heart of Transylvania and entails an 85 million-euro investment.
The Cluj project will cover 40,000 square metres of retail and entertainment space, with an area allocated for offices that covers over 8,000 square metres. The investors are also considering incorporating a hotel within the complex.
In May, Dawnay Day representatives stated that by the end of this year, they could start three new projects worth between 30 and 100 million euros. In the meantime, the British have announced another Atrium Center project, in Satu Mare, with a projected investment of 61 million euros.
Dawnay Day first entered the Romanian market when it acquired the MacroMall shopping centre in Brasov, for 19 million euros. Later, the company decided to move towards development and started projects in Cluj, Arad, Baia Mare and Satu Mare.
Dawnay Day currently has projects underway that total 318 million euros, which include the investment in the expansion of the MacroMall centre.
The British investors are among the most active players on the domestic real estate market. Alongside Dawnay Day, the funds listed on the AIM market in London, which operate on the Romanian real estate market, include funds such as Equest, Fabian, North Real Estate and EDPC.
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