Argo fund opens Romania's second largest retail park

Aim-listed investor Argo said on Wednesday that its private equity fund and local developer Omilos Group have completed the first phase of the ERA Shopping Park development in Iasi, Romania. The scheme is the first of two retail parks that Argo Capital Partners Fund 1 plans to operate in the country under the ERA Shopping Park brand.

The Iasi park - the second largest in Romania - will offer on completion over 115,000 m² of space. The first phase of the development with 37,000 m² opened this week with an occupancy rate of a 100%. Major tenants are French food retailer Carrefour, German DIY chair Praktiker, and Altex. The second phase of the development is expected to be completed and begin trading between spring 2009 and spring 2010. Phase two has a gross lettable area of 43,000 m². Once completed, ERA Shopping Park Iasi is projected to generate EUR 18mln in annual rental income.

The project was funded by equity provided by the fund and the Omilos Group on a 50-50 basis and a senior debt facility of EUR 126.5 mln provided by a syndicate of Western European banks.

The ERA Shopping Park Oradea is the other retail park planned to open under the ERA Shopping Park brand. This is a smaller project with 65,000 m² which is expected to open in March 2009.