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EBRD financing boosts Romanian regional property sector
€80 million loan for development of regional retail centres
Romania’s regional cities will benefit from new employment and retail
opportunities at brand new commercial centres built with the help of an €80
million EBRD loan.
The 12-year loan to regional property developers GTC and Aura Investments will
be used to finance the development, construction, letting and management of
retail outlets in Romanian regional cities, helping to bridge the gap in real
estate development between Bucharest and the regions.
The first three commercial centres will be built in Buzau, Piatra Neamt and
Suceva, to the north and north-east of Bucharest, adding to the very few
retail chains of international quality that exist outside of the Romanian
capital.
Hildegard Gacek, EBRD Director for Romania, said this project reflects the
EBRD’s strong emphasis on supporting the development of the Romanian regions
and promoting competition in the regional property sector. By encouraging the
expansion of private investment outside of the capital, the Bank is helping
attract quality new investments to the local market and introducing
international standards of retail development.
The total €80 million senior loan to GTC and Aura will consist of €35 million
A loan for the EBRD’s own account and €45 million B loan which will be fully
syndicated to Raiffeisen Zentralbank Osterreich.
Supporting regional development is a core part of the EBRD’s strategy for
Romania, aimed at redressing continuing imbalances in economic progress
between the capital and regional centres. The EBRD is supporting the private
sector in the country together with foreign and local investors, with a
special focus on equity and long-term funding. As the process of convergence
continues with the country’s accession to the EU, the Bank will continue to
support projects which accelerate and strengthen the development of all
regions, with the aim to ensure improved standards of living for all Romanian
citizens.
GTC has been active as a developer in the Central Eastern European real estate
markets since 1994, operating in 9 countries, including Poland, Czech
Republic, Hungary, Romania, Serbia and Montenegro. GTC has positioned itself
as one of the leading developers in CEE with over 1,500,000 sqm of office,
retail and residential space under different stages of development.
Aura has been active in Romania since 2005 and is currently involved in
developing over 3,500 residential units in Romania and Hungary. Aura is listed
in the Tel Aviv Stock Exchange since its incorporation in 1992.
This project builds on the Bank’s experience in this sector. To date the Bank
has invested €280 million in the real estate and retail sectors with the aim
of supporting regional development in over 40 cities with a total population
of more than six million.
The EBRD is one of the largest investors in Romania, having invested €3.5
billion in 230 projects so far and helped mobilise additional €6.4 billion
from other sources.
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