Hergan to build third store for Auchan

The Avrig 35 group, managed by businessman Alexander Hergan, one of the most powerful and also discreet businessmen in the real estate sector, has reached a new agreement with Auchan to develop a hypermarket on Theodor Pallady Boulevard in Bucharest, in a retail park that will also include a Decathlon sporting goods store, sources on the real estate market told ZF.

Works should begin in 2010, with this being the third Auchan hypermarket included in a project developed by Avrig 35, after those in the Iris Shopping Centers in Titan and Pitesti.

Alexander Hergan has developed a number of office buildings in Bucharest, rented to companies such as Petrom, Vodafone and Raiffeisen and has managed to sell over 250 million euros’ worth of property in the last four years, before the market froze and prices started to slide.

The businessman is credited for such buildings as Charles de Gaulle Plaza, a landmark building as far as the office market of Bucharest is concerned, as well as the Tower Center International building, which is still vacant about two years after completion because of a conflict with another shareholder of the project.

Avrig 35 owns a 30ha plot of land in Eastern Bucharest which it bought from Zentiva pharmaceutical group for some 20 million euros more than four years ago.

“We cannot provide any comment until next week when we hold a press conference,” Avrig 35 officials said.

The group has done business on all the important segments of the real estate market over time, building two Iris-branded retail parks in Bucharest and Pitesti, five office buildings in Bucharest and boasting a portfolio of 18 new or renovated office buildings in the major cities in the country, as well as a residential complex on Eminescu Street in the capital city.