cora operator puts EUR 100 million into its first mall on the local market

Newsroom 16/02/2011 | 15:01

Romania Hypermarche, the company operating the cora hypermarket chain, announced a EUR 100 million investment into its first mall on the local market, in Constanta, under the name of Corall. Two similar commercial centers are planned in Brasov and Bacau over the next two years, said company representatives.

Corall will have a total constructed area of 150,000 sqm. It will be anchored by an 8,500 sqm cora hypermarket and it will feature another 150 stores as well as an entertainment area.

Works on the site have already begun and construction should be finalized in the second half of 2012. Although the company is operating similar commercial centers in other European countries this is the first project of this kind in Romania. “Building this project proves once again the trust we have in the development of the Romanian modern retail,” said Philippe Lejeune, general director of cora Romania.

Asked about the timing of this new project, Lejeune explained that until now land prices were too expansive. Romanian Hypermarche owns several plots of land around the country, amounting to about 40 ha and a EUR 150 million investment. In Brasov the company acquired the Hidromecanica factory and and Iasi a former textile factory. On these two sites  Romanian Hypermarche plans to build another two malls with works estimated to start in 2012. “In Brasov and Bacau we are waiting for construction permits,” said Lejeune.

In 2011, the company will also open two more cora hypermarkets in Arad and Drobeta Turnu Severin. For 2010 cora Romania has reported a 3 percent turnover increase but saw its profitability decrease by a single digit, according its general director. Lejeune added that this year he expects a pickup in sales in the second half of the year as well as a stabilization of the profitability. The retailer also plans to further invest in launching new private label products. “We currently have 400 private label products but the target is to reach 1,000 by yearend.”

CB Richard Ellis, the company managing the leasing process, expects to prelease more than 50 percent of Corall by the end of 2011.

Romanian Hypermarche has been present in Romania with the cora brand since 2003. The company is part of the French Louis Delhaize Group.

Simona Bazavan

Tags: ,
BR Magazine | Latest Issue

Download PDF: Business Review Magazine March (II) 2024 Issue

The March (II) 2024 issue of Business Review Magazine is now available in digital format, featuring the main cover story titled “BAT DBS Romania Hub: A Vibrant New Office For An Employee-Centric
Newsroom | 27/03/2024 | 17:32
Advertisement Advertisement
Close ×

We use cookies for keeping our website reliable and secure, personalising content and ads, providing social media features and to analyse how our website is used.

Accept & continue