Real estate developer RED has secured financing from Austrian Immorent for a shopping center to be built in Husi, north-east Romania, under the Cadran brand. The developer is negotiating financing for another such outlet in Marghita. The Husi project, which will be finished in June this year, will be the first of a planned network of proximity shopping centers. The project in Husi will feature 20 stores on 4,500 sqm and will be anchored by Penny Market. So far half of it has been rented.
Cadran shopping centers will be built in secondary cities with 25,000 to 75,000 inhabitants. Each will comprise a shopping galleria and will be anchored by a supermarket.
RED is trying to move in to meet consumer demand in such towns, which are not yet well catered for. The move comes after its activity building and opening larger retail parks under the Armonia brand in bigger Romanian cities such as Arad and Braila. These projects average 50,000 sqm of retail and are anchored by Carrefour units. However, RED closed down the Armonia project in Braila in July last year, nine months after the opening. The developer said it was trying to reposition the project.
RED is owned by US investment fund Warburg Pincus and Spanish GED. So far, it has invested EUR 700 million in retail projects across Romania. The developer is managed by real estate professionals Andrew Stear and Teodor Pop.