260m-euro real estate project in Lacul Tei area

Upground, a company controlled by British and Greek investors, which formerly owned the City Mall shopping centre, will invest 260 million euros to develop a real estate project in the Northern part of Bucharest, which will comprise residential and office spaces. “The company’s shareholders include both the former owners of City Mall and other investors. I can only say the investors that used to own the City Mall project hold a minority stake,” said Valentin Preda, general manager of Upground and former manager of City Mall. City Mall, located in the Eroii Revolutiei area of Bucharest, was sold last year by Victoria Holding company to the Australian investment fund APN/UKA Funds, in a transaction worth 103.5 million euros. The Upground project, located in the Lacul Tei area, will comprise two 16-floor blocks of flats, as well as two office buildings with a 100,000 square-metres of lettable space. “The project will be funded through two bank credits worth around 150 million euros, as well as through the company’s own funds. One credit has been taken out from Banca Romaneasca (worth around 100 million euros) and the second from Banc Post,” specified Preda.