RED opens gates at Armonia Braila, its second local retail park in 2008

Newsroom 04/12/2008 | 16:06

The opening is part of RED's announced strategy to hold onto its current retail projects in Romania rather than sell them, due to poor market conditions. “The potential sale price at the moment doesn't reflect the real value of the project and doesn't yield the expected profit. The market value of the projects has dropped considerably. Under these circumstances, when investors say ‘these are the prices today', we say ‘see you when the prices are where we want them',” said Teodor Pop, managing partner at RED Management. This business strategy will be implemented through the company's property management division, managed by Radu Niculescu, announced Christian Hiver, commercial manager of RED.
The retail park in Braila contains French retailer Carrefour's 20th hypermarket in Romania, its second investment in Braila. The network's 19th hypermarket opened in Shopping City Sibiu earlier this month.
Previously, RED has said it was interested in establishing partnerships with other developers or institutional investors, and was in talks with several investors that are not yet present in Romania. It has previously partnered investment fund Immoeast, to which it sold Armonia Shopping Center in Arad. Besides the two retail parks, RED has ongoing projects including retail parks in Constanta, Baia Mare, Braila, Satu Mare and Giurgiu, and residential and office developments in Bucharest, Iasi and Baia Mare. It 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 Spanish GED Capital.
Magda Purice

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