Sonae Sierra delays projects in Bucharest and Ploiesti, stops on-site works in Craiova

Newsroom 04/05/2009 | 16:11

The shopping mall in Craiova, the only one of the three projects with works at the site underway, was already 70 percent pre-leased, but this did not help the developer secure the necessary bank financing. The mall in Craiova required EUR 140 million in investment, according to previous information.
The developer had announced plans to build three shopping centers in Romania. The biggest of them was in Bucharest, a 110,000-sqm shopping mall due for completion in 2011, which required a EUR 600 million investment.
Sonae Sierra owns the River Plaza shopping mall in the city of Ramnicu Valcea, for which it paid EUR 42 million in 2007, when it entered the market. It also owns 51 percent of shopping center Arena Mall in Bacau, which it bought for around EUR 45 million. The Portuguese developer wanted to be among the top three developers and mall owners in Romania in terms of lettable areas in three to five years, according to previous statements.
Sonae Sierra is one of several real estate developers which have halted their projects in Romania. Hungarian Ablon has abandoned its planned residential projects, as has Copper Beech, which decided to continue only one residential project at which construction works were already underway. Recently, Austrian construction company Strabag suspended construction works at the Asmita Gardens residential project, due to payment delays by its developer Charlemagne Capital.
Corina Saceanu

BR Magazine | Latest Issue

Download PDF or read online: July 2023 Issue | Business Review Magazine

The July 2023 issue of Business Review Magazine is now available in digital format, featuring the main cover story titled “At a Crossroads: Budget Deficit Endangering Romania’s Economic
Newsroom | 31/07/2023 | 14:14

    You will receive a download link for the latest issue of Business Review Magazine in PDF format, based on the completion of the form below.

    I agree with the Privacy policy of

    I agree with the storage and handling of my data by

    Advertisement Advertisement
    Close ×

    We use cookies for keeping our website reliable and secure, personalising content and ads, providing social media features and to analyse how our website is used.

    Accept & continue