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.

Romania and Bulgarie would register the highest growth in newly build retail property by the end of 2007. The retail property growth would reach 150 per cent by 2007, the report said as quoted by the Romanian English language daily Nine O’clock.

Once Romania enters the European Union, it will become the second biggest retail property market in Central and Eastern Europe after Poland. Romania plans to construct trade centres of total area of 560 000 sqm. The countries from Central and Eastern Europe would register the highest growth in retail property supply, the report said.

Romania and Bulgaria will have before the end of 2007 a 150% growth in the amount of commercial space, largest figure in Europe, according to s report published by the real estate services company Cushman & Wakefield.
Between 2006 and 2007 Bulgarians will open commercial centers adding up to 98,000 square meters, while Romania, the second largest market after Poland in the Eastern and Central Europe, has scheduled for opening projects that add up to 470,000 square meters.
The moment is a huge opportunity for investors and retail operations, says Razvan Gheorghe, general manager of Activ Consulting, the Bucharest office associated with Cushman & Wakefield.

The largest projects for 2007 are Baneasa Shopping City - 55,000 square meters - and Floreasca City Center - 33,000 square meters - in Bucharest, as well as the Polus Center in Cluj, with 62,000 square meters.