Omilos, the Romanian subsidiary of UK Argo Real Estate Opportunities Fund (Argo), filed for insolvency on November 12, at the request of its owner.
The court appointed insolvency firms TZA Insolventa and VF Insolventa as the firm’s legal administrators.
Argo said earlier this month it filed a petition for the voluntary insolvency of its Romanian subsidiary following litigation with firm Constructii Bihor for debts worth EUR3.2 million related to the Era Shopping Park project.
The exposure of lenders Bancpost, Banca Romaneasca and Bank of Cyprus to the project is EUR62.3 million. Retailers Carrefour, Bricostore, Altex and Mobexpert are among the mall’s tenants.
Era Shopping Park registered turnover of EUR2.5 million last year.
Argo said in a statement last week the activity of Era Shopping Park will not be affected by the insolvency of Omilos. The mall is 92% rented.
Argo owns four shopping centers in Romania, with a total lettable area of 271,000 sqm, and is one of the largest local shopping center owners.