Raiffeisen Evolution to spend EUR 1 billion on local developments

Floreasca City, to be built in two stages, will deliver two office buildings, Sky Tower and Office Wing, totaling 90,000 sqm of office space and a retail area of 50,000 sqm. Floreasca City is estimated to be completed at the end of 2010 with construction having already started.
The most expensive project in Raiffeisen Evolution's pipeline is estimated to require from EUR 600 to 800 million, and will be built in the Straulesti area, near Petrom City development. The project, which will be started in August next year, will deliver a mix of office building, hotel and housing complex with a gross floor area of 420,000 sqm above ground.
“We don't yet know the mixed developments in this project because we are still studying the market. Still, we have a zonal urban plan for the project and we can build 400,000 sqm,” said Monica Barcutean, managing director of Raiffeisen Evolution Romania.
The project will be developed on a plot of 110,000 sqm acquired by Raiffeisen Evolution from Petrom for EUR 90 million. The project is estimated to be completed in 2013. A third project will be located in Balotesti, close to Bucharest, and will deliver 250 residential units, a built area of 36,000 sqm. Works on the residential project are scheduled to start in March 2009 and should be completed in March 2011.
“We don't keep assets in our portfolio, we develop and sell them to institutional investors in order to find further equity for our developments,” said Markus Neurauter, managing director of Raiffeisen Evolution project development. Raiffeisen Evolution project development is a company controlled by Raiffeisen Zentralbank Osterreich AG (RZB) with 40 percent, while the other 60 percent is held by Raiffeisen Holding, Uniqua and Strabag AG. In Romania, Raiffeisen Evolution has been involved in Bucharest-based developments such as JW Marriot Grand Hotel building, Oracle Tower built for Uniqua Real Estate AG as investor, Baneasa Center, office and shopping building Casa Mosilor and Ploiesti-based Office Center.

Magda Purice