As concerns the effects of the financial crisis on the group, Delta representatives indicated that Romania is now facing a period in which only companies with powerful financial partnerships and ones carrying out quality projects will be able to survive on the market.
“In these days, we are involved in final negotiations for the acquisition of a new piece of land for a future mall in a small town near Bucharest. We are focusing on towns around the country with 100,000-150,000 inhabitants,” said Drugowitsch for Business Standard.
The company began construction last year on its first mall, West-Gate Center, to be inaugurated next November in Craiova. To date, DTZ Echinox and R&P real estate agencies have rented some 60 percent of the available space in the Craiova center, and the Delta representative indicated that so far €35-40 million have been invested in the project, which will cost a total €100 million. The project’s financing comes from the Austrian Immoeast investment fund, which contributed equity, and a line of credit from Raiffeisen Bank.
“The company’s objective is to sell malls and shopping centers to potential investors, such as real estate funds,” added Drugowitsch. He said that Delta plans to open a further three shopping centers next year, although he did not indicate where, due to the fierce competition on the market.
