The company also bought a piece of land in Timisoara, as its development strategy includes all cities with more than 100,000 inhabitants.
Europe-Israel’s Country-Manager, Luc Rosmans, told Business Standard the three projects which the developer is to build in Bacau, Iasi and Miercurea-Ciuc will include a commercial area, offices and apartments. The total investment will exceed €100 million. The land for the three malls has been purchased, but Rosmans declined to divulge the price Europe-Israel paid for this. Construction will begin in 2008 and should be finalized in one or two years.
The group also targets other large cities, such as Slatina, Deva, Tulcea and Sibiu. “We want to be active on this market because it is very profitable. The yield of investments is higher than on the mature markets. Romania still offers plenty of opportunities,” Rosmans added.
According to real estate consultancy company Colliers, the yield for office building investments is eight percent in Romania, compared to 7-8 percent in Hungary and the Czech Republic.
The Europe-Israel group is operating in Romania through its Elbit Medical Imaging and Plaza Centers divisions. The latter is to start building a €60 million mall in the city of Timisoara. “The investment could be increased to €100 million, if conditions on the market are good. In addition to the commercial center, we are considering the possibility of developing another project to include commercial areas, offices and apartment buildings,” Rosmans said.
Last year, Europe-Israel purchased 75 percent of Dambovita Center, the developer of Casa Radio (Radio House) project.
Construction work for Casa Radio began during the communist era, but was stopped following the 1989 anti-communist revolution. The building is to be turned into a complex to include commercial areas, a luxury hotel and a residential area. The total investment is estimated to be worth some €500 million.
