It is hoping for a similar yield for its Cluj-Napoca and Arad developments. For the Cluj-Napoca development the company plans to invest EUR 60 million. With works to be completed in 18 months, the project should be worth EUR 111 million at completion, according to company announcements. The Arad project, with EUR 72 million in estimated investment, should be worth around EUR 87 million upon completion at end-2008.
Company shareholders have already attributed their profits from the Cluj, Baia Mare and Arad transactions, some EUR 1.5 million, EUR 1 million and EUR 3 million respectively, to capital increases.
The 34,000-sqm Baia Mare commercial center already has the necessary land. The company has paid more than EUR 6.5 million for this third multi-purpose development site in Romania.
The project will be financed through a mixture of equity and debt, as is the case for the other developments planned for Romania.
Dawnay Day has recently announced its broader plans to invest EUR 900 million in the Atrium Center chain.
All land deals concluded by the firm in Romania so far have involved sellers in which the group already had controlling stakes.
“The acquisition is a share purchase transaction from a UK holding company in which members of the Dawnay Day Group have a controlling interest,” company reps said of the Arad land purchase.