New EUR 60 mln mall to be built on former factory site next to Bucharest’s Obor market

Prodplast Imobiliare, a real estate development company controlled by Romanian businessman Florin Pogonaru, who is also the president of the Romanian Businessmen Association (AOAR), will build a new modern shopping center next to the Obor market, the most famous farmers' market in Bucharest. The center, called Veranda Shop & Stay will be a proximity mall which should serve near half a million people who live in the Obor and Colentina areas of Romania’s capital, within less than 10 minutes driving from its location, according to Andrei Pogonaru, the son of Florin Pogonaru, also partener and member of the board for Prodplast Imobiliare. The investment in the new mall will be EUR 60 million, from the company’s own resources and bank loans. It will have a retail area of 25,000 sqm, of which 10,000 sqm will be leased to French retailer Carrefour, which will open its eleventh hypermarket in Bucharest here. “We have chosen the name Veranda because we are bringing a breath of fresh air into the agglomeration of Obor,” said Andrei Pogonaru. He added: “It is a new concept on the Romanian market – we are offering very accessible stores, a welcoming food court and the most extensive green area dedicated to a retail project in Romania until now. Thus, we want to contribute to the commercial revival of Obor district, but also to offer to its residents more leisure alternatives.” Veranda will be located on a 4.5 hectare land on which the former plastics factory Prodplast was located. Pogonaru, who took control of Prodplast some years ago, relocated the production lines and cleared the land for real estate development. Only the former offices of Prosplast are still standing on site, but most likely they too will be demolished after construction work will start. The mall will also have 1.5 hectares of green spaces, parks, and sports facilities, and 1,200 parking spaces. Pogonaru expects that more than half of the visitors will come either by foot or by public transport. He expects some 8 million visitors per year, which is about 20,000 per day. Veranda was designed by the British architects "Chapman Taylor" and will be finalized in 2016. Real estate consultancy company CBRE Romania is the exclusive leasing agent of the mall. The owner of the mall expects EUR 6-7 million in rental revenues per year. Andrei Chirileasa, andrei@romania-insider.com