Cora builds hypermarket on the Hidromecanica platform in Brasov

Hidromecanica plant in Brasov, a supplier to manufacturers in the auto industry, will be turned into a Cora hypermarket. The French chain, with around 400 million euros in turnover, paid 13 million euros to acquire the around 40,000 square-metre plot that accommodates the Hidromecanica platform, which has been put up for sale by the Public Finance Department in Brasov.
The asset was bought at the evaluation price, of around 325 euros per square metre. This is the second industrial platform in Brasov to be acquired by developers in order to be turned into a retail park, after Tractorul Brasov, where Auchan will open a hypermarket in 2011.
Cora was the last hypermarket operator present on the Romanian market, which had yet to tap into the Brasov market. The city has also attracted massive investments in DIY retail over the last few years thanks to its tourist potential.
Hidromecanica Bra[ov (HIRY stock exchange symbol) is controlled by the Garbacea family in Brasov, with a 60% stake, and has faced major liquidity problems lately. The manufacturer posted a 2.4 million-RON (0.6 million-euro) loss in the first quarter of the year, and a 1.9 million-RON turnover, down 40% against the similar period of 2009, according to official data.