Israeli investment fund Kardan has announced the acquisition of 120,000 square metres of land in Bucharest in a deal worth 15.5 million euros. The deal was made through the Romanian branch of its own company Global Trade Center (GTC) Poland.
The land, which is in the north of the capital city, will be used for the development of a trade, residential and office complex. The size of the trade complex will be similar to those built by GTC in Warsaw and Krakow, but will offer larger retail space. The project is expected to be one of the largest in the region.
Based on Romania’s macroeconomic situation and the increasing purchasing power of the population, Kardan is planning to raise its exposure to the Romanian real estate sector, mainly focusing on the office, retail and residential segments.
GTC’s current activities in Romania are mainly focused on the office market. Following completion of the Europe House project, which was sold to Austrian investment fund Europolis two years ago, GTC is now working on its second office project, America House, which is situated in the Piata Victoria area. The deadline for completion of the project is set for the first quarter of 2006. After completion, the building will have 26,000 square metres of class A office space.
The investment in America House is put at around 50 million euros, with the financing secured by the European Bank for Reconstruction and Development (EBRD) and Raiffeisen Bank.
GTC is one of the top real estate investors in Central and Eastern Europe, with projects in Poland, Hungary, Czech Republic, Romania, Serbia and Croatia. GTC Poland is listed on the Warsaw Stock Exchange.
GTC International, a subsidiary of the Kardan group, is present on the Romanian market through GTC Real Estate Investments Romania BV. GTC’s shareholders are Kardan Real Estate, Azorim Investment, Development and Construction, Citibank and Deutsche Bank. Kardan is also active on the Romanian insurance market through Omniasig, the third largest general insurance company.
The northern area of Bucharest is expected to become the future business centre of the city, with most completed or announced office projects being developed in this area. Over the last ten years, office buildings such as the World Trade Center, Neocity Tower, Baneasa Business Center, Europe House, BRD Tower and Grivco Tower have been built in the central to northern area of the city. alexandru.cerchez@zf.ro