Plaza Centers real estate developer, involved in the development of the project Dambovita Center on the platform of the Casa Radio building of Bucharest, is set to focus on the small projects of its portfolio in the following period, for which the company can get financing even in the current market conditions.
The company owns eight plots of land in Romania, on which it plans to develop shopping centres, with the total value of investments estimated by the Israeli group to stand at 2bn euros.
"For development, we need banks. Our projects in Timisoara and Iasi are large ones and should we go to banks now asking for 75m euros they'd say 'no, thank you'. We will focus on smaller projects, in Slatina and Hunedoara, for which we could more easily get financing of 20-25meuros," Luc Ronsmans, country manager of Plaza Centers, a company part of Elbit group controlled by Israeli billionaire Mordechay Zisser, owner of Radisson SAS hotel of Bucharest, told ZF.
Ronsmans says Plaza Centers' financial situation is sound, especially owing to the fact that the Israeli firm acquired all the plots of land from its own resources and has no debts to banks.
The company is now developing a mall in Miercurea Ciuc, Csiki Plaza, due to be finalised late this year, has invested some 70m euros in the initial works and demolition of part of the old structure of Casa Radio building and is in talks to get financing to start construction works for the project of Slatina.
"We're in talks to get 20-21m euros for the project of Slatina and we're expecting a decision from the bank in mid-February. If the answer is negative, we could start the project from our own funds. Next on the list of our priorities is Hunedoara," Ronsmans also said.
The three cities outside Bucharest that Plaza Centers is focusing on also have the benefit of the lack of competitors. On the other hand, the company's expectations with regard to rent income have been moderate, so that the potential drop in rents in shopping centres will hardly hurt the company.
The company's biggest project domestically is Dambovita Center, developed on a 10-ha plot of land in the centre of Bucharest, entailing investments put at one billion dollars. According to Ronsmans, the project is due to be finalised in 2012.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
