Raiffeisen finances Bucharest mall project with €25m loan

Raiffeisen Bank has provided development financing of €25.5 mln for the construction of the Veranda shopping centre in the Obor area of Bucharest.

The loan agreement was signed in February 2016 and provides the possibility to increase the funding up to €28.5 mln. The project represents a total investment worth €60 mln.

Veranda shopping centre is being developed by Prodplast Imobiliare and is 70% pre-let at the moment. The project has a total leasable area of almost 30,000 m2, including a Carrefour hypermarket (with 10,000 m2 and 1,200 parking spots.

'Raiffeisen Bank wants to finance feasible projects, realized by reliable developers and that can play an important rol in transforming the big cities, as in the case of Veranda,' commented Silviu Toma, project finance director at Raiffeisen Bank.

The Chapman Taylor-designed project is set to be delivered in the fourth quarter of this year.

Veranda’s owners were assisted by the law firms PeliFilip and Freshfields Bruckhaus Deringer, while the financing banks were advised by lawyers from CMS Cameron McKenna.