RED Management re-thinks strategy and holds on to retail projects

Newsroom 27/10/2008 | 16:17

The company will hold on to its projects for the short and medium term, he added, recalling the high investment yields, of 8 to 8.5 percent, which have led to a drop in developers' profits.
The company will continue with all the retail project it has announced for the Romanian market but will adapt some of the concepts. RED has announced several retail projects in Romania which should require around EUR 700 million in investment, and plans to allot EUR 300 million more to that. “We don't deem it necessary to cut the volume of investments in Romania,” Pop said.
The firm is interested in establishing partnerships with other developers or institutional investors, and is in talks with seven investors that are not yet present in Romania. RED has previously partnered investment fund Immoeast, to which it sold Armonia Shopping Center in Arad. The developer previously said it was in talks to sell the Armonia project in Braila as well.
RED is working on retail parks in Constanta, Baia Mare, Braila, Satu Mare and Giurgiu, and on residential and offices in Bucharest, Iasi and Baia Mare.
The developer is planning to go for smaller retail centers in Husi, Miercurea Ciuc, Slobozia and Marghita, where it will build under the Cadran brand.
RED is owned by investment funds Warburg Pincus and by Spanish RED Capital.
Corina Saceanu

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