City Mall worth half its acquisition price on lowering rent revenues

One reason for this decline in value could be a drop in its operational revenues, mainly rents, from EUR 4.96 million to EUR 2.8 million in the first six months of the year.
“City Mall (Romania) reported a fall in income of 43 percent, reflecting the micro economic conditions of the Romanian economy, including an increase in retailers' operating costs as a result of a devaluation of the Romanian Lei versus the Euro. The expiry of a rental guarantee received on the acquisition of the property also contributed to the difference,” writes APN/UKA in its report.
APN/UKA European Retail Trust is the third owner of City Mall, after buying it from Victoria Holding in 2006 for EUR 103.5 million.
Corina Saceanu