Carphathian agrees refinancing of EUR 109m Riga mall

AIM-listed CEE commercial property investor Carpathian has been granted refinancing to complete construction of its landmark retail development project in the Latvian capital of Riga. 'Following extensive negotiations, a revised agreement has been finalised with the co-owner and development partner, Titan Invest and the senior lender, Nordea,' the company said in a statement.

Titan has committed to invest a further EUR 10 mln to fund the development of Galleria Riga while Swedish lender Nordea has changed the terms of its EUR 60 mln financing facility, which is now due to expire in September 2017. So far, Carpathian has drawn down around EUR 40 mln of the loan.

'These combined funding sources cover all remaining budgeted costs including interest payments, running costs and tenant incentives', it said.

The project, with a development cost of EUR 109 mln at completion, is scheduled to open its doors in September 2010. The mall will comprise 22,500 m² of retail space and a 126-space car park, in the heart of the old town district. Approximately 60% of the space is currently under offer and negotiations are continuing to lease the remaining space.

Carpathian, which was created in 2005 to focus on retail properties in CEE, has disposed of a number of projects in recent months including two development projects located in the western Romanian cities of Arad and Cluj.