Africa Israel takes out EUR 234 million loan from Hypo Real Estate Bank

The loan to Africa Israel, meant to cover 80 percent of the planned investment in the Cotroceni Park project, will be granted for eight years, of which three will cover the construction works, and five, the exploitation of the project. The developer has contracted the sum from Hypo Real Estate Bank London. Africa Israel Europe (AFI Europe), part of the Israeli group Africa Israel Investments, has increased its investment in the Cotroceni Park project in Bucharest to EUR 300 million from the initially-announced EUR 165 million. Moreover, the developer has bought the shares of its partner in the project, New Century Holdings (NCH). The latter's main contribution was the 12 hectares of land the mixed project is being built on. The land used to belong to the electrical equipment maker UMEB. By the end of the year AFI will become the sole owner of the project. “We will pay around EUR 78 million for the 50 percent shares held by NCH and we will be the only shareholders in this project from December,” said Reuven Havar, CEO of Cotroceni Park. The budget for the construction of the mall will roughly amount to EUR 200 million while the hotel and the five office buildings, currently in the design stage, will require investments of approximately EUR 100 million. Besides the mixed Cotroceni Park project, AFI Europe is planning to allot EUR 500 million to build up to 4,000 apartments and possibly a commercial center on the premises of Laromet factory in Bucharest. The company has recently bought the 15.5-hectare Laromet site for EUR 77.5 million. Cotroceni Park will feature a 200,000 sqm built area, of which the shopping center will occupy 120,000 sqm. It will comprise five other buildings of 100,000 sqm, of at most 15 stories. One will most likely be a hotel and four will be office buildings.

Corina Saceanu