Real estate moguls start battle for Obor mall

The construction of a mall-type commercial centre worth above 100m euros in Obor area of Bucharest is causing the first major battle for a commercial project on the domestic market.
The Turks that developed Bucuresti Mall and Plaza Romania, businessmen Gabriel Popoviciu and Sorin Creteanu, the Israelis owning Bucharest Hotel and the biggest German operator of commercial centres, led by the former chief of the Tiriac group, are battling for the construction of a commercial centre on the site of the current Obor market, located in one of the most densely populated areas of the capital city.
Anchor Grup, ECE Projektmanagement, Obor Plaza and a consortium made up of Practic, Baneasa Investments, Comnord and Procema are competing in the “finals” for the development of a mall on the site of the current Obor market. The companies are to submit their final bids for the project related to the building of a mall worth at least one hundred million euros by September 25. Out of the four candidates, only Anchor Grup has developed malls in Romania, Bucuresti Mall and Plaza Romania, the largest such centres in the capital city. On the other hand, the consortium that includes Baneasa Investments is the only contender so far lacking any expertise related to a major commercial centre. Baneasa Investments is currently operating a 150m-euro investment in a mall as part of Baneasa real estate project, with Ali Ergun Ergen, the former head of Anchor Grup, being in charge of this mall.
The officials of Plaza Centers, part of Israel’s Elbit Medical Imaging group, which owns Bucharest Hotel, also announced they would develop a commercial project worth 100m euros in Romania in the second half of this year. Plaza Centers has developed and sold several malls in Central Europe.
The most experienced candidate of all in the domain of commercial centres is Germany’s ECE group. The German group is currently operating 84 malls in Germany and Central European countries, and the project to be developed in Obor area could mark its official entrance on the Romanian market, the second biggest in the region after the Polish one. ECE head of operations in Romania is Radu Merica, the former CEO of the group of companies of businessman Ion Tiriac for five years.
The construction of a mall-type commercial centre on the site of Obor market will not lead to the taking down of the market itself, say real estate analysts, because the market is a very solid anchor when it comes to luring visitors. Obor market has a surface area of more than 32,000 square metres. At present, the rents for stands amount to 5,5 RON per day (1.5 euros), according to the data published on the web site of District 2 Market Administration.
Under the circumstances, the monthly rent for a 1.5 square metre stand is 45 euros or 30 euros per square metre. In Bucharest malls, the monthly rent per square metre starts from about 30 euros for large areas and may go to as much as 80 euros or even more in the case of areas of less than 100 square metres.

Contenders in the race for Obor mall
Practic, Baneasa Investments (the group of companies held by businessmen Radu Dimofte, Gabriel Popoviciu and Sorin Creteanu)
Anchor Grup, owning Bucuresti Mall and Plaza Romania malls
ECE (the biggest European mall operator, run by Radu Merica, the former head of Tiriac group
Plaza Centers, a member of Israel’s Elbit Medical Imaging group, which owns Bucharest Hotel