Retail property investment company Dawnay, Day Carpathian has purchased a mixed-use development site for €14.3m (£9.6m) in
The company, which invests in central and eastern
The development site is located in the city centre and covers a total area of 19,400 sq m (208,819 sq ft).
A 40,000 sq m (430,556 sq ft) development is planned with a retail and entertainment complex and an office element, with potential to incorporate a hotel.
The company said the estimated construction cost for the project is €60m (£40.6m), with work to start in March 2008. It is expected to be completed within 18 months.
Based on an income yield of 7%, this puts the estimated project value upon completion at €111m (£75m).
Chairman Rupert Cottrell said: “This represents an excellent transaction for DDC and an opportunity for us to establish ourselves further in the Romanian market through the first of a number of development projects.
“We feel that the country as a whole benefits from strong growth potential but with a lack of good retail stock.
“The combination of these factors fully supports development opportunities such as this.”
