Radio House land and building project value goes up but return on completion drops

Israeli developer Plaza Center’s Radio House mixed project in Bucharest, which is still in the pipeline, could be worth EUR 693 million upon completion, below the previous EUR 927 million estimation made by the developer. However, the market value of the land and project has gone up from EUR 158.7 million at the end of 2008 to EUR 181.6 million.

The developer’s nine planned projects in Romania would have been worth at EUR 1.3 billion upon completion based on the 2008 valuation, while the current valuation points to a EUR 1 billion market value.

The Radio House is due for completion between 2013 and 2015, after approval from the urban technical commission has been secured. Timisoara Plaza, a retail and entertainment scheme, is scheduled to start construction in 2011 or 2012.

Works on the Miercurea Ciuc Plaza project started in 2008 and the 14,000-sqm scheme is awaiting external funds for completion. Iasi and Slatina Plaza projects are scheduled to start in 2011-2012, with completion set for 2012-2013, the same as mixed projects in Hunedoara, Targu Mures and Constanta.

In November 2006, Plaza Center acquired a 75 percent interest in a company in partnership with the government of Romania to develop Casa Radio (Radio House). The facility will comprise approximately 600,000 sqm of gross buildable area, including a 170,000-sqm gross buildable area shopping mall and leisure centre, offices, a hotel, casino, hypermarket and a convention and conference hall.

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The company has obtained the approval of the urban technical commission of Bucharest and completion of the first phase is scheduled for 2013.

Corina Saceanu