The largest real estate financing deal in the CEE this year, totaling EUR 220 million, was signed by AFI Europe for AFI Cotroceni shopping mall in Bucharest

AFI Europe, a member of “AFI Group”, has signed the largest real estate financing agreement, totaling EUR 220 million, with the consortium of banks comprised of Deutsche Pfanbriefbank, Erste Group Bank and Raiffeisen Bank, for the refinancing of “AFI Cotroceni” shopping mall in Bucharest, Romania.

“We appreciate the consortium’s trust in AFI Europe and in AFI Cotroceni, for granting such a significant loan of 220 million Euros. The process has been extremely challenging given the amount of the loan, the participation of 3 major banks and the fact that it was for a project in Romania. However, as the successful result shows, achieving financing in large sums is possible in Romania if it is for a good project and an experienced developer. I would like to thank the 3 banks for their trust in AFI Europe and AFI  Cotroceni and the two law firms, Dentons, which represented AFI Europe, and CMS Cameron McKenna, which represented the consortium of banks”, commented David Hay, CEO AFI Europe Romania.

AFI Cotroceni has been inaugurated in November 2009 and has been considered as one of the most successful shopping malls in Romania since it opened.

AFI Cotroceni gross leasable area spreads over 81,000 sqm and its net operating income for Q1, 2014 totaled EUR 7.3 million, which represent an increase of 6.7% compared to Q1, 2013. Based on Q1 results, NOI for 2014 is assumed to pass EUR 29 million.

In addition, “AFI Cotroceni“, showed an increase in shoppers’ footfall (visitors to the mall) to an average of 55,000 visitors per day in Q1 2014. Current occupancy increased to over 98%.

The value of AFI Cotroceni“ is EUR 375 million as of 30.09.2013.

About AFI Europe Romania:

AFI Europe operates in Romania since 2005. The company has developed and is managing “AFI Cotroceni”, the biggest and most dominant shopping mall in Romania and among the biggest shopping malls in the CEE region. The project spreads over a leasable area of more than 80,000 sqm and offers to its visitors a large entertainment area with multiple leisure options and a variety of over 300 shops of local and international brands, visited by 55,000 customers per day.

On October 3rd, 2013 AFI Europe inaugurated AFI Ploiesti, the first and only modern shopping mall developed in the city centre of Ploiesti, following an investment of over EUR 50 million. The shopping mall offers a total gross leasable area (GLA) of 33,000 square meters spreading over two retail floors occupied by 100 national and international brands, including more than 7,000 sqm of entertainment.

Adjacent but fully integrated into AFI Cotroceni shopping mall, AFI Europe Romania is currently developing AFI Park, Bucharest’s newest and most advanced Class A business Park. AFI Park offers more than 65,000 of office leasable area, currently targeted by multinational IT&C corporations. The first office building “AFI Park 1“, with 12,250 sqm of leasable area, is 100% leased. On April 15, 2014 AFI Europe inaugurated “AFI Park 2” with 12,200 sqm of GLA and 96% occupancy while “AFI Park 3“ which is due to be delivered in December 2014 is already 40% pre-leased to UK held IT company Endava Romania. In April 2014 AFI Europe Romania has also commenced construction of AFI Park 4 & 5 office building that will offer additional 33,000 sqm of gross leasable area to the project and is planned to be delivered in Q4 2015.

In addition, AFI Europe Romania has two retail projects to be developed in the near future, “AFI Arad”, a 30,000 sqm GLA retail park to be developed in the city centre of Arad, on a land plot of 80,000 sqm and “AFI B.Noi”, a 36,000 sqm GLA Shopping Mall to be developed in Bucure?tii Noi district 1 of Bucharest.

In the office segment, AFI will develop AFI Business Park Bucharest, a 50,000 sqm of GLA class A business park to be located in close proximity to the J.W. Marriott hotel and the Romanian Parliament in Bucharest’s district 5. The business park will comprise of 2 low rise office buildings and one office tower, with ample green areas, a high tech/campus style environment in an urban complex with a central plaza & gardens.