Property in Romania

Irish businessman planning €591 million shopping centre

A property-development firm run by Irishman David Sharkey has formed a joint venture to develop a €591million shopping centre in Romania.

Warsaw-based Caelum Developments, which is headed by Sharkey, has formed the 50:50 joint venture with an international shopping centre company called Sonae Sierra.

They plan to develop Parklake Plaza - which will include a range of international shops, a supermarket and a 14-screen cinema - on a 20-acre site in Bucharest.

The Parklake Plaza site will also include two residential towers of about 300 apartments each. The five-level shopping centre is scheduled to open in April 2011, with almost 1.2 million square feet of floor space, making it one of the biggest shopping centres in Europe. It will have 443 shop units and 3,300 underground car parking spaces.

According to a statement from the firms, the ‘‘total gross investment, excluding Vat, is estimated at €591 million’’. Caelum Developments, which describes itself as ‘‘a specialist retail developer in Eastern Europe’’, was founded in 2002 by Sharkey’s Capital Partners Holding and focused initially on Poland.

It entered the Romanian market in 2006 and sourced the Parklake Plaza site in January last year. The firm has 46 properties in Poland, Romania, Hungary and Germany.

Sonae Sierra owns 47 shopping centres in Portugal, Spain, Italy, Germany, Greece, Romania and Brazil. It has almost 30 other projects under development.

Date posted: April 14, 2008