Dawnay Day Carpathian has completed its second deal in Romania as it looks to increase its exposure in the country’s regional retail market.
The company has bought a site in Cluj-Napoca, Transylvania, for E14.3m (£9.7m) from a private investor. It plans to develop a retail-led scheme of more than 430,000 sq ft on the site.
Construction is expected to begin in March 2008. Construction costs are expected to be E60m (£40m) and the end value of the project is expected to be E111m (£75m).
The site was purchased with financing on a 65% loan to value basis.
Rupert Cottrell, chairman of Dawnay Day Carpathian said: ‘We feel that the country as a whole benefits from strong growth potential but with a lack of good retail stock. The combination of these factors fully supports development opportunities such as this.’
The city in the Somesul Mic Valley is 440km north of Bucharest and is home to nearly 300,000 people