Prodplast Imobiliare invests EUR 60 mln in Obor shopping mall

The 25,000 sqm shopping mall that Prodplast Imobiliare, controlled by Romanian businessman Florin Pogonaru, is developing in the Obor area of Bucharest will be completed in 2016 and is expected to generate between EUR 6 million and EUR 7 million of rental income in the first year, the company has announced.

Veranda shopping mall will require an investment of EUR 60 million, with the money coming from Prodplast’s own funds, but also from a bank loan for which “negotiations are in an advanced stage”, said Andrei Pogonaru, member of the board of administration of Prodplast Imobiliare and the son of Florin Pogonaru.

The mall is being built on the grounds of the former Prodplast plastics factory, which has been relocated. It is situated in the Obor neighborhood of Bucharest, one of the capital’s traditional commercial areas, right next to the Obor farmers’ market. Some 20,000 people are expected to come here each day to do their shopping. Veranda is being branded as the first green and proximity mall in the city and is meant to be complementary to the existing traditional retailers in the area, stressed Pogonaru.

“We’re bringing a new model of shopping center which has been successfully tested in other European capitals such as Prague and Paris. We want to serve the people living near Obor market, while at the same time we are the closest shopping mall to downtown,” he said. Prodplast Imobiliare estimates that the project has a primary catchment area of approximately 166,000 households or about 430,000 people. All in all, some 8 million visitors are expected in the first year.

With a gross leasable area (GLA) of 25,000 sqm available on two floors, Veranda will have 1,200 parking places and feature 15,000 sqm of green space. Depending on the mall’s performance, it could be extended with additional space in the future, said Pogonaru.

Out of the total GLA, 10,000 sqm has already been leased by Carrefour, the mall’s anchor tenant, which will open its 11th Bucharest hypermarket there. The remaining 15,000 sqm will be divided into approximately 100 stores for which leasing contracts have already been signed for periods of up to 30 years, said the businessman. The developer estimates that over the coming period, half of the remaining space will be leased as well.

CBRE Romania is the exclusive leasing agent for the project.