City Mall goes for third auction, 20% down from the initial price

The creditors of the insolvent City Mall shopping center in Bucharest have decided to continue the selling procedures and plan a new auction on May 16, for a price of EUR 26,2 million, 20 percent down from the initial price of EUR 33 million. This decision was taken after no bidders showed up at the first two auctions. City Mall was on sale for the first time on March 31, at a price of EUR 33 million and then, because no investor was interested in buying the shopping center, a new auction was held on April 20, at a price 10 percent lower of EUR 29.5 million. After the second auction, the judiciary liquidator Casa de Insolventa Transilvania said creditors will discuss other ways to exploit the asset, including its preservation in account receivables. City Mall went bankrupt last year after the mall owners, APN European Retail were unable to repay a loan of over EUR 30 million to UniCredit, while the operating income decreased by 90 percent last year. City Mall has a total area of ​​38,000 sqm, divided into three basements, ground and four floors, offering a rental area of ​​19,000 sqm. Irina Popescu, irina.popescu@romania-insider.com