French retailer Auchan has signed a partnership with K&S Developments to acquire a 12 hectares surface from the land owned by Electroputere S.A. Craiova, where they will build a commercial center set for opening in the second quarter of 2011.
The Electroputere Parc, which requires an estimated investment of EUR 90 million, will be placed on the site of the former plant in Craiova. It will have a built surface of 6.3 hectares. Besides Auchan, other brands that will open stores in the center are Leroy Merlin, Decathlon, Kiabi, Norauto, all of them partner brands of Auchan.
K&S Developments is entirely owned by companies owned by Kris Carton and Steven Van Den Bossche. As managing partners of Belrom Retail Estate, they developed Sibiu Shopping City, European Retail Park Targu Mures, ERP Braila, ERP Focsani, Hello Shopping City Bacau, ERP Severin.
With this transaction, Electroputere Craiova want to cover its historic fiscal debts, dating from before privatization. “Selling 12 hectares from the 62 hectares of the Electroputere platform does not affect the company’s industrial activity, as it is part of the consolidation and restructuring process started two years ago,” said Adrian Gabriel Dumitriu, general manager of Electroputere S.A.
Electroputere Parc Craiova is located on one of the most important boulevards in Craiova. The main anchors of the commercial center are Auchan, which is building there a 11,000 sqm hypermarket, sports retailer Decathlon, which will have a 3,500 sqm store, large-size clothing retailer Kiabi, which will have a 1,800 sqm location, interior decorations retailer Leroy Merlin with a 10,000 sqm location, and car service and equipment company Norauto with a 1,100 sqm outlet. The total built surface of the center is 6.3 hectares. It will have 2,000 parking places.