Hungarian TriGranit Development Corporation, which is part of US real estate giant TrizecHahn, has been selected by the Romanian Ministry of Transportation, Constructions and Tourism (MTCT) as partner in Romania's most important real estate project, Esplanada, which will be built in the centre of the capital city.
The signing of the contract, which is worth in excess of 1.3 billion dollars (one billion euros), could be delayed until next year, however, due to the elections.
TriGranit's bid was selected after a tender in which more than 40 letters of intent were submitted by Romanian and foreign investors.
Market sources say the Hungarian group will be supported by two major financing institutions for the development of Esplanada: Germany's largest bank, Deutsche Bank, and Hungary's largest financial group, OTP.
The project will cover a surface area of 110,000 square metres in the Unirii area, between the headquarters of Banca Tiriac and the National Library. The complex will include 75,000 square metres of office space, 20,000 square metres of hotel space, 30,000 square metres of residential space, 40,000 square metres of commercial space, 30,000 square metres for culture and sports, 110,000 square metres of parking space and 30,000 square metres for the local and central public administration, according to MTCT.
MTCT representatives have confirmed the selection of the company, but say the sealing of the partnership could be delayed for some time.
"Negotiations are not over yet," stated Ileana Tureanu, a secretary of state from MTCT.
Tureanu said that the public-private partnership agreement would not "be signed by the time of the elections". Political reshuffling after November 28 is thus likely to generate new delays. Negotiations could last for as long as nine months, according to MTCT, before the contract is signed.
The deadline for bid submissions was July 15, with a subsequent research, evaluation and selection period.
TriGranit representatives declined comment on the information linked to the project. However, Todd Cowan, the company's general manager, told Ziarul Financiar several months ago that the firm was "looking at several development opportunities in Romania, with public-private partnership with the MTCT being one of them".
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