The project will be built on 80,000 sqm of land in the center of Arad. The 33,000-sqm GLA of the shopping center, named AFI Palace Arad, and the 12,000 sqm of Arad Tower office building are scheduled for completion in 2010, according to Reuven Havar, country manager of AFI Europe Romania.
The developer will finance the project at a ratio of 20 percent equity and 80 percent loans, according to Havar.
AFI Europe has ten underway or planned projects in Romania totaling 2 million sqm of gross building rights. Four of them are commercial centers and offices – Cotroceni Park and AFI Golden Palace in Bucharest, AFI Palace Arad and AFI Palace Ploiesti – while the remainder is made up of residential developments, mostly in Bucharest.
AFI Europe Romania is planning an investment of EUR 2 billion in Romanian developments in the next 14 years, according to Havar.
“Our main focus will be the development of shopping centers and offices, and we are planning an investment of EUR 600 million for them. The residential segment of 15,000 units will take up the remainder of the EUR 2 billion,” said Havar. The mall project in Arad is promoted by Cushman&Wakefield Activ Consulting and Jones Lang LaSalle.