Adamescu buys back 3m-euro stake in Unirea Shop

Unirea Shopping Center, the company that manages the Bucharest shopping centre of the same name, has in recent months bought back almost 11% in its own capital from the RASDAQ Electronic Market. The shares are now worth three million euros on the market, though the company actually paid more than this since the buyback transactions were carried out at higher prices than those on the market. Last year, the company collected 3.5 million euros from rents.

A significant part of the stake was bought from Broadhurst investment fund, one of the largest investors in commercial spaces. Broadhurst now holds less than 5% in Unirea shares.

Unirea Shopping Center is controlled by businessman Dan Adamescu through Nova Trade. Adamescu also controls the insurance company Astra and owns several office buildings, including the Modern Business Center, which is home to the Bucharest Stock Exchange.

Unirea shareholders endorsed the buyback operations in April, but what will happen to the shares (subsequent cancellation or sale) has not yet been approved. Dan Adamescu was unavailable for comment yesterday by the time of going to press.

In the first nine months of the year, Unirea Shopping Center’s turnover rose by 50% compared with the corresponding period of last year. Gross profits, however, dropped 13% to 10.9 billion ROL (0.27 million euros).

The company collected 368 billion ROL (9m euros) in store rents in the first nine months of the year. Next year, a multi-storey car park will be opened next to the shopping centre, turning it into more of a mall-type complex. An entertainment area, with restaurants and cinema screens, will also open on the fourth floor.

Rents for commercial space are currently on the increase since supply in this area is very limited on the Romanian market. Unirea Shopping Center has long-term tenants for almost 100% of its available space.
vlad.nicolaescu@zf.ro