RED secures financing for first Cadran in Romania

Immorent is providing EUR 8 mln in financing for RED’s first Cadran commercial centre that is to be developed in Husi, North East Romania. Immorent Romania is part of the Erste Group.

The development of the first Cadran commercial centre is due to be completed in June 2010. Negotiations are also at an advanced stage to finance the second Cadran commercial centre, which will be developed in Marghita.

Some 50% of Cadran Husi is already prelet. The complex comprising 4,500 m² will comprise around 20 stores that will be anchored by Penny Market. The shopping mix will include fashion clothing, footwear, health & beauty items, home-related products along with day-to-day services such as banks, dry cleaning and clinics. The project also includes 120 parking spaces.

Andrew Stear, Managing Partner of RED said: 'We welcome Immorent’s financial commitment which is an endorsement of the demand for this kind of retail and leisure project in smaller Romanian cities where the consumer’s day-to-day shopping needs are undersupplied.'

Cadran commercial centres will be developed in secondary and tertiary Romanian cities that have a population of between 25,000 and 75,000 inhabitants, with the purpose of revitalizing those city areas. They will be anchored by a food supermarket and a shopping gallery. Smaller cities have no similar developments, and there is a distinct lack of public space for social activities.

RED currently has a EUR 700 mln retail development programme in Romania encompassing shopping plazas, retail parks and neighbourhood centres. The company's main shareholders are US private equity fund Warburg Pincus and the Spanish investment fund GED Group. Warburg Pincus currently has approximately $12.4 bn (EUR 8.5 bn) under management, with an additional $7.2 bn available to invest.

GED is an independent Private Equity group operating in the Iberian Peninsula and Southeastern Europe. They manage funds in excess of EUR 350 mln through three private equity funds for investments in Central and Eastern Europe.