Colliers: EUR 300 mln real estate deals in the pipeline in Romania

Several real estate deals worth around EUR 300 million are currently in the due diligence phase in Romania and should be finalized in the next four months, according to Colliers International Romania.

“Victoria City represents a major deal for the Bucharest real estate market and for Romania in general, being the first joint-venture for a shopping center signed in Bucharest in the last four years,” said Blake Horsley, Director Investment Services with Colliers International Romania, which assisted CD Capital and Benevo in the deal. Most of the properties included in the EUR 300 million deal pipeline are office buildings. “The level of deals currently under negotiation is extraordinary for the market, as these deals will establish landmarks useful for both sellers and buyers, especially in the post-Lehman brothers stage. It is important to underline when these deals were started, six to nine months ago,” Horseley went on. “After a potentially roaring December 2011 and the first half of 2012, the second half of next year will be quieter,” he went on. South African investment fund New Europe Property Investments (NEPI), has teamed u with Canadian Benevo Capital and CD Capital to develop new shopping center in Bucurestii Noi area in the capital city, namely Victoria City Center, according to the company. The companies have recently signed the joint venture agreement for this project. Benevo Capital was founded by Michael Topolinski and started operations in Romania in 2007, when it started investing in new residential units in Bucharest. CD Capital was founded by Todd Cowan and Jordan Dermer, previously the Chief Executive and Chief Development Officers of TriGranit Development. The new shopping center will have a total area of 52,000 sqm. It will include a 4,500 sqm food anchor- the first in Bucharest-, over 32,000 sqm for local and international fashion and related tenants, and a 8,000 sqm area for cinemas, restaurants, bars and pubs and a health club. Corina Saceanu, corina@romania-insider.com