A Canadian builds two malls in Bucharest
Benevo, a company controlled by the Canadian businessman Michael Topolinski, resumes its intention to start the construction works for the mall on the former textile factory Dacia from Bucureştii Noi neighbourhood. This time, the scheduled term is this summer.
Michael Topolinski has announced in the last two years a series of partnerships for the development of this project, but finally dropped one by oneOne of the parthers was the investment fund CD Capital, founded by Todd Cowan and Jordan Dermer, former directors of the biggest developer in the region, TriGranit Development. In 2011 the company announced the partnership with New Europe Property Investments (NEPI), the most active real estate investor since the crises beginning. Both partnerships were dropped and the Canadian announced recently that he will launch in May a private equity fund with 100 million dollars for investments in Bucharest and Kiev.
Even if Topolinski announced that since 2010 he insured contracts for renting the mall in Bucurestii Noi with Cora and cinema City, in the present announcement the investor mentions that he had secured the lease with Cora for 12,000 sq. m. the name of the project was changed from Victoria City Center to Victoria City Lifestyle Retail Center and the mall’s rentable area has grown 56,000 sq. m to 68,000 sq. m. The same release shows that based on the current contracts, Benevo expects over 70% occupancy rate by the middle of this summer. The developer also announced the signing of the financing agreement with alpha Bank (the amount of the investment was previously announced EUr 150 million).
According to Benevo’s new strategy, the mall will be completed in the third quarter of the next year.
Even so NEPI has quit the partnership for Victoria City, a new association was made with Benevo for a different project, a mall in the area Trafic Greu from Bucharest, on the former industrial platform Vulcanul. Topolinski said that this will be the second project to run this year. Vulcan Retail Park has a total area of 94,000 sq. m and implies EUR 200 million investments.
„We are currently facing advanced negotiations for other plots in Bucharest and therefore we expect that in 2014 Benevo to grow its number of projects in Bucharest. We are also in negotiations for the acquisition of a plot of land in Kiev, where we plan to build a retail centre with 50,000 sq. m rentable area. “, Topolinski said. (sursa: capital.ro)