Veranda shopping centre, situated in the Obor area in Bucharest, has attracted a funding of €25.5 million from Raiffeisen Bank SA and Raiffeisen Bank International AG, for the development of the project in the next period. In this transaction, Veranda’s owners were assisted by the law firms PeliFilip and Freshfields Bruckhaus Deringer, while the financing banks were advised by lawyers from CMS Cameron McKenna.
“Raiffeisen Bank was and continues to be a trustworthy partner in supporting the economic environment in Romania. We want to finance feasible projects, realized by reliable developers and that can play an important role in transforming the big cities, as in the case of Veranda,” said Silviu Toma, Project Finance Director at Raiffeisen Bank.
“The signing of the financing agreement confirms the value of the project and its positioning among the top investments in the retail sector in Bucharest. We are very happy with the partnership with Raiffeisen Bank and with the expertise of their team in structuring such a transaction. Together we have made possible the revitalization of an area with tradition in trade, with a large number of residents and with a retail and entertainment offer tailored to their needs,” said Andrei Pogonaru, representative of the owner of Veranda project.
“As a lawyer, your work is more pleasant when it has a positive tangible result. Veranda is a beautiful project, its construction is progressing well and the completion of the financing solution confirms a real success story. I am eager to go shopping there this autumn, to be the client of my clients,” said Alexandru Bîrsan, Partner PeliFilip.
The loan agreement for Veranda shopping centre was signed in February 2016 to finance part of the total costs necessary to develop the project. According to the agreement, it provides the possibility to increase the funding up to €28.5 million.
The project will benefit from a total investment worth €60 million.
Veranda shopping centre is developed by Prodplast Imobiliare in the Obor area and has an occupancy rate of 70 percent at the moment. The project has a total leasable area of almost 30,000 sqm, having as main anchors Carrefour hypermarket (with approximately 10,000 sqm) and H&M (with over 2,000 sqm), alongside over 100 shops, a food area, 1,200 parking lots and a wide green space that totals over 15,000 sqm.
The project, set to be delivered in the fourth quarter of this year, will be organized on two floors, and due to its modular structure it will offer the possibility to be extended in the future. Currently, the foundation of the building was finalized and the works are continuing with the structure of the project.