AFI Europe, a member of “AFI Group”, has signed one of the largest real estate financing agreement of this year, totalling €220 million, with a consortium of banks comprised of Deutsche Pfanbriefbank, Erste Group Bank and Raiffeisen Bank, for the refinancing of AFI Palace Cotroceni shopping mall in Bucharest.
“We appreciate the consortium’s trust in AFI Europe and in AFI Palace Cotroceni, for granting such a significant loan of €220 million. The process has been extremely challenging given the amount of the loan, the participation of 3 major banks and the fact that it was for a project in Romania. However, as the successful result shows, achieving financing in large sums is possible in Romania if it is for a good project and an experienced developer. I would like to thank the 3 banks for their trust in AFI Europe and AFI Palace Cotroceni and the two law firms, Dentons, which represented AFI Europe, and CMS Cameron McKenna, which represented the consortium of banks,” commented David Hay, CEO AFI Europe Romania.
AFI Palace Cotroceni was inaugurated in November 2009 and is considered to be one of the most successful shopping malls in Romania since its opening.
AFI Palace Cotroceni spreads over a leasable area of 81,000 sqm and its net operating income for Q1, 2014 totalled €7.3 million, which is an increase of 6.7 percent compared to Q1, 2013. Based on Q1 results, NOI for 2014 is assumed to pass €29 million.
In addition, AFI Palace Cotroceni, showed an increase in footfall (visitors to the mall) to an average of 55,000 visitors per day in Q1 2014. Current occupancy increased to over 98 percent.
The value of AFI Palace Cotroceni is €375 million as of 30.09.2013.
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