NEPI Rockcastle tries to block large land transfer in Bucharest to local rival

NEPI Rockcastle, the biggest mall owner in Romania, argues against the law that transfers a 46-ha land plot in Bucharest central business district (CBD), free of charge, to Romexpo SA - the country's biggest exhibition center controlled by Romania's Chamber of Commerce and Industry (CCIR).

CCIR plans to use the land to develop a large mixed-use real estate project in partnership with Romanian developer Iulius Group.

NEPI argues that the state has other options for the 46-ha plot of land and can develop it better under a public auction and an international architecture competition.

The real estate developer suggests amendments to the Law of the Commerce Chambers that would give the authorities more options, other than passing the land, estimated at "hundreds of millions of euros," to "a private developer."

CCIR, a private entity, already announced plans to pass the land to local developer Iulius Group against a rent that would be spent "for the benefit of the local business environment."

NEPI also points to the lack of transparency of the contract and the lack of formal commitments taken by CCIR regarding the use of the money for the public interest.

In a response, CCIR stressed that it holds the right to use the land for another 33 years and, unless developed under its own project, the land would be left as it is.

The Constitutional Court recently cleared the draft law, which was sent to president Klaus Iohannis for promulgation. The president can promulgate the bill and pay the potential political cost generated by the lack of transparency of the whole deal or return the law to Parliament, where it could generate more tensions among the partners in the ruling coalition.

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