In the year since he been in charge of Immochan, Diaconu has coordinated investments of around EUR60 million. They entailed the acquisition of three plots – Tricodava and Grantmetal in Bucharest, and the Tractorul platform in Brasov – as well as building a shopping center in the Crangasi district of Bucharest, on the Grantmetal platform.
Immochan obtained the construction permits for the Tricodava project in Bucharest’s Drumul Taberei and for Tractorul in Brasov, where he plans to start work in the coming months, after the tender documentation is ready and the constructors are designated.
“Both the Brasov-based project and the Bucharest one have been authorized in January and we are currently finalizing documentation in order to start the auction for works. The auctions for the two projects will run in parallel, but at least in Brasov there will not be a general contractor. Instead, several works will be attributed to several contractors in order to keep a rein on our budgets,” Diaconu said.
He estimates the cumulated investment in the two projects is worth around EUR120-EUR130 million, with the construction sites set to open in May-June, with work to be completed in the second half of next year. The investment in these projects will be made with the funds of the group “which decided last year to rely on Romania long-term.” This strategy entailed bringing the Immochan division to Romania and acquiring the bulk of Real’s local hypermarket chain, the main transaction in Romanian retail.
Besides the French group adding 20 hypermarkets to its portfolio (if the transaction is approved by the Competition Council), Immochan and Auchan are also investing in other projects that will include Auchan hypermarkets.
The Brasov-based projects provide in an initial stage for the construction of a shopping center with a leasable area of 45,000 sq m, which could be subsequently expanded, as Immochan has 100 ha of land at Tractorul, while in Drumul Taberei Immochan will build commercial spaces of around 22,000 sq m, as well as offices for the future headquarters of the Auchan group. Next to these spaces, which will be set up in one building, Immochan could build two other office buildings if it can find tenants.
The more “problematic” project at present is the one in Brasov, where NEPI, Cora and Echo Investments also plan to develop shopping centers with work set to start this year.
“In Brasov we want to make a regional project, this city is a privileged target for the next two years, with projects being announced by developers who have the ability to develop them. But the question is whether Brasov can take four new projects.”
Diaconu plans to have rental contracts for 60-70% of the project’s area by June-July and hopes the “airport and the Bucharest-Brasov highway will be finalized at some point,” which would encourage investments in the area.
(English version by Daniela Stoican)