The partners have already opened the project in Iasi, while the one in Oradea is currently being built. Argo Capital Partners Fund 1 expects the project to generate EUR 18 million in annual rent, according to its representatives. The Oradea project, still under construction, is projected to generate annual rental income of EUR 10.5 million.
Omilos is currently working on the last phase of its Iasi project, which will feature a shopping mall, and on a similar scheme in Oradea. The shopping mall will require EUR 42 million in investment, and will provide 42,000 sqm of GLA. The second phase of the development, which will house additional anchor tenants, is expected to be completed and begin trading between spring 2009 and spring 2010. Tenants in phase two will include Mobexpert, as well as a large Cinema Complex under the operation of Cinema City. Plans for the remaining land are being evaluated and may involve construction of much needed residential and/or commercial office space alongside the retail park, according to Argo representatives.
The recently completed phase of the Iasi project includes a Carrefour unit, which is the second in the city, a Praktiker and a shopping galleria, some 37,000 sqm in total. The project was funded by equity provided by the fund and the Omilos Group in equal participations and a debt facility of EUR 126.5 million provided by a syndicate of Western European banks, according to Argo.
Omilos Group is planning to pursue a smaller retail project, a EUR 40 million investment, in a provincial Romanian city. One of the company's partners already owns the land needed for this project, which will feature 23,000 sqm of leasable area, said Nicolae Danciu, country manager of Omilos Romania. “We will have at least two such projects in Romania and one in Chisinau,” said Danciu. The company is also looking at residential possibilities, according to the country manager.
Argo formed a joint venture partnership with leading local developer Omilos Group in autumn 2006 to consummate these two transactions. “Through our partnership with Omilos we acquired two excellent sites at a time when property and land prices were relatively low,” said Andreas Rialas, CIO of Argo Capital Management Limited.