Chimopar, one of the oldest companies in Romanian industry, went insolvent in the autumn of 2012 and this spring was declared bankrupt by the Bucharest Tribunal.
Dedeman had made an offer of EUR8.17 million plus VAT (EUR174/square meter) for the land plot as early as last spring, but the deal was completed only after the building license for the new store was obtained.
Works have started recently, with Arad-based PAB Romania, with revenue of EUR38.6 million in 2013, being appointed as general entrepreneur.
“We completed the acquisition of the 4.7-ha land plot from Chimopar in September and we will build a store with an over 15,000 square meter area, scheduled for opening in late March,” Dragos Paval, Dedeman’s president and majority stakeholder, told ZF.
Dedeman has opened four stores this year and Paval restates his objective of opening a unit in each district of Bucharest. By opening the store of Pallady, Dedeman will have only district 1 and 5, of southern and northern Bucharest, left to cover.
With the four new stores opened in 2014, Paval says he will reach the target set in early 2014, of boosting revenue by 8%. Thus, Dedeman will most likely see revenue go beyond EUR650 million this year.
“I believe there’s slightly upward trend on the construction market. It remains to be seen what official figures tell us,” stated Paval, who wants to drive Dedeman network from 40 to 50 stores in the next two years.
Paval says he is not likely to open new construction sites by next spring.
The total land area in Chimopar’s portfolio topped 23 hectares, so that, after the deal with Dedeman, the company still controls over 18 hectares of land that can be valued at EUR25-30 million.
(English version by Catalina Apostoiu)