Property in Romania

North Real Estate buys Romanian retail park for about 83 mln eur


North Real Estate Opportunities Fund said it has bought the 50,000 square metre European Retail Park Sibiu, a shopping centre in Sibiu, Romania, for about 83 mln eur.
The Guernsey-based investment firm said the acquisition, believed to be one of the largest real estate transactions in Romania to date, will be financed through existing cash balances and bank debt.
North Real Estate said the acquisition reflects its objective to maximise risk-adjusted returns derived from rental income and capital appreciation, and also follows its strategy of capitalising on the growth of disposable income and consumer spending power in Eastern Europe through the creation of a portfolio of institutional grade retail shopping centres across the region.

The company said the project is expected to generate a rental yield in excess of 8 pct upon final completion.

Date posted: November 3, 2006