The developers have already decided to expand the gross lettable area of Timisoara Centrum from 60,000 square meters as initially planned to 80,000 square meters, 70,000 of which will be used for retail and 10,000 for offices. The investment has been increased, too, from EUR80 million to EUR90 million. The complex should be delivered by the end of 2017.
Work will begin on both the shopping center and the office building at the same time, and the construction company will be chosen soon. About 40% to 45% of the retail area has already been pre-let, with Carrefour as one of the tenants, as has over 50% of the office building.
The complex will also include a do-it-yourself operator, which will rent about 10,000 square meters, and the developers are in talks with two such potential tenants, says Ali Ergun Ergen.
“The biggest retailers, whose response was encouragingly positive, have demonstrated confidence in the concept, location and overall management of the project,” said Ali Ergun Ergen, who participates in the project via TBE Business Solutions company.
It is important to note that significant demand came from fashion retailers not present in the city and the complex can still accommodate interested tenants, especially regional ones, he added.
Asked about the project’s chance for success, considering several major real estate investments have been announced for Timisoara, Ali Ergun Ergen said he saw competition as good for business, in a city that is developing in full gear.
Iulius Mall of businessman Iulian Dascalu is the only mall in the city at the moment, with Shopping City Timisoara developed by NEPI due for opening soon and two more malls announced, the Timisoara Centrum and Timisoara Plaza, of Israeli group Plaza Centers.
The main backer of Timisoara Centrum is Alpha Bank via Alpha Group Investments, while Ali Ergun Ergen’s company is a project management, know-how, leasing and marketing service provider.
“I was the first to say for more than a year now that the [real estate] market is changing, becoming more dynamic and starting to grow again,” said Sergiu Oprescu, Alpha Bank president, at the project launch conference.
(English version by Loredana Fratila-Cristescu)