Only a handful of real estate projects have obtained funding over the last few years, and even for those that did the terms were different than for the projects signed between 2006 and 2008. Oasis pledged six finalized real estate projects as collateral and negotiated for six months with UniCredit to obtain a EUR7 million loan. Representatives of the company, controlled by Klaus Reisenauer and Kurt Wagner, say getting the loan after six months is “a reasonable time for the current market,” although it is two or three times longer than during the real estate boom.
What is the Sibiu company going to do with the money?
“The amount we got through this refinancing will be directed towards the company’s ongoing projects all across Romania,” says Reisenauer. “For 2011 and 2012 we are planning to start the development of six new projects in Romania, estimated at around EUR80 million, which will have over 60,000 square meters of built area when completed,” Reisenauer says.
The projects that the company is set to start are in Aiud, Adjud, Alexandria, Sebes and Satu Mare, where they will be developed under the Prima Shops brand, while Oradea will see the development of a 24,000 square-meter mall – Prima Shopping center – which is scheduled for completion next year.
Prima Shops projects located in Fagarasi, Tecuci and Reghin, as well as three buildings which accommodate Lidl stores, have been mortgaged in favor of UniCredit to guarantee for the loan.
“The requirements of the banks have changed, with one of the leading criteria being for the project to have an occupancy degree of over 60%,” says Claudiu Ferentz, Managing Partner of Swift Finance, a company that has provided financial consulting to Oasis for securing the loan. “In the case of Oasis, the difference was made by the locations, the 100% rental degree, as well as the tenant portfolio, which includes brands such as Lidl, Takko, Deichmann, Altex, Domo and Carmolimp.”