“We’ll trim the price by another 5% to 10% for a final auction. After that, we will change our strategy to capitalize the shopping center,” Radu Lotrean, partner with Transilvania Insolvency House, told MEDIAFAX.
The start-up price of the fifth auction is set at EUR21-EUR22 million, down from EUR23.6 million at the previous sale attempt. Initially, liquidators had set a price of EUR33 million.
City Mall went bankrupt in November 2010, after owner Victoria Holding, a unit of Austria’s investment fund APN European Retail Trust, was unable to repay the loans taken for its construction.
According to the preliminary chart of debts, the three banks that financed the project stand to collect a total 176 million lei (over EUR41 million).
City Mall has a total surface of 38,000 square meters and a lettable area of 19,000 square meters. The center includes 80 stores, cafe bar and restaurant areas, as well as a movie theater operated by City Cinema. (EUR1=RON4.172)