IULIUS obtains the largest real estate loan granted in Romania to date: more than EUR 410 million

Mihai-Alexandru Cristea 12/09/2022 | 14:28

IULIUS Company, the only developer and operator of mixed-use urban regeneration projects in Romania, together with partners Atterbury Europe, recently signed a 410 million Euro financing agreement for the nationwide network of Iulius Mall regional shopping centers in Iași, Cluj-Napoca, Suceava and Timișoara. The loan supports the long-term investment plans of the developer toward consolidating its projects’ regional market leader status in the retail and entertainment segment.

 

The 410 million Euro loan contracted by IULIUS Company is a long-term syndicated loan refinancing granted by Erste Group Bank AG, Banca Comercială Română S.A., Raiffeisenlandesbank Niederösterreich-Wien AG, OTP Bank Nyrt, and OTP Bank Romania S.A. Wolf Theiss, one of the largest law firms in Central, Eastern and South-Eastern Europe, provided the legal framework for conducting this transaction.

“This is a landmark transaction for the Romanian real estate market by virtue of its volume and characteristics which offer a viable alternative to the capital market. On the one hand, it certifies the financing parties’ confidence in the projects of IULIUS Company that have grown into sustainable and recognized regional centers of attraction in terms of shopping, business and leisure. On the other hand, it certifies our loyalty to and trust in banks as business partners, which are essential values in our organization. The new loan is geared towards implementing the corporate goals in the development strategy of the company,” said Marius Perșenea, Chief Operating Officer.

As of 2017, the Iulius Mall regional shopping mall network in Iași, Suceava, Cluj-Napoca and Timișoara (an integral part of the Iulius Town Timișoara mixed-use project) is owned by companies IULIUS and Atterbury Europe based on a 50-50 joint venture partnership.

The four Iulius Mall shopping centers form the only LEED certified nationwide shopping mall network in Romania, as a result of implementing practical and measurable strategies and solutions designed to achieve enhanced performance in terms of sustainable site development, water consumption savings, energy efficiency, choice of materials and indoor air quality.

 

Initial investments upwards of one billion Euro to date in urban regeneration projects

IULIUS Company is the only developer and operator of mixed-use urban regeneration projects in Romania, with more than 20 years of real estate experience and operating in four major Romanian cities, namely Iași, Timișoara, Cluj-Napoca, and Suceava.

The company portfolio includes major real estate projects with an initial investment value upwards of one billion Euro, projects that have shifted lifestyle perceptions, redefined and revitalized city centers, and harmoniously integrated with their respective communities. The operating portfolio currently comprises 310,000 sqm of retail premises located in two mixed-use urban regeneration projects (Palas Iași and Iulius Town Timișoara), the only ones of this kind in Romania, in the nationwide network of Iulius Mall regional shopping malls (in Iași, Cluj-Napoca, and Suceava), as well as the first Family Market project in Miroslava (Iași), a convenience retail concept. These are vibrant spaces that define poles of urban attraction and draw more than 70 million visits every year.

IULIUS came into prominence as one as the most active office building developers and operators via the United Business Center national brand, which operates in three major academic centers in Romania: Iași, Timișoara, and Cluj-Napoca. In total there are 13 green buildings with a total area upwards of 152,000 sqm, accommodating more than 80 company head offices and 15,000-plus employees.

The entire portfolio is developed and operated in line with international green building standards and is LEED certified. The mission to reduce the carbon footprint and to optimize green building criteria with impact on the community is integrated in the IULIUS Company sustainability strategy, focusing on three main pillars: environment, community, and corporate governance and business ethics best practices.

 

Another 650-plus million Euro for projects under development

IULIUS Company is currently developing Palas Campus Iași, the largest office building in Romania with an area of 60,000 sqm and entailing a 120 million Euro investment, as well as its second Family Market location in Iași, in Bucium neighborhood, a convenience retail concept focusing on local entrepreneurship, with a leasable area upwards of 5,000 sqm (over 11 million Euro investment). The company is also expanding Iulius Mall Suceava by an additional 14,000 sqm, an investment upwards of 14 million Euro set which will transform the regional project into the largest retail area in the north of Romania (65,000 sqm).

Concurrently, IULIUS sets out to develop the largest urban reconversion project in Romania, with a half billion Euro estimated investment value, which seeks to transform the Carbochim platform in Cluj-Napoca, after relocating and upgrading the factory, into a one of a kind mixed-use project combining retail, office, residential, cultural, and entertainment uses.

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Mihai-Alexandru Cristea | 29/11/2022 | 10:17

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