After this autumn Echo Investment signed a contract with Carrefour for an 8,500 square-meter space in the mall, the Polish company now says it is willing to start work on the mall using its own funds, considering that Immochan and NEPI also plan to develop malls in Brasov.
“We are hoping to get the construction permit in February or April at the latest and start work in June next year. We will start construction with our own funds when we have contracts signed for 40% of the area. When the rental degree reaches 70%, we will get bank financing through the Polish subsidiary,” Roxana Stanciulescu, the new senior leasing manager of Echo Investment as of this autumn, told ZF.
Competition among Brasov’s future shopping centers is expected to be tough, with Stanciulescu saying it would be “a disaster” if all planned projects were developed at the same time.
Stanciulescu, formerly a consultant with Jones Lang LaSalle, says Brasov, which does not have any mall larger than 20,000 sqm, could see at least three new such projects over the next two years, which would lead to excessive supply. In order to attract tenants and hang on to them, mall owners would have to significantly cut rent, so no-one would stand to gain.
(English version by Daniela Stoican)