Sonae Sierra, Caelum agree Parklake Plaza joint venture

Portuguese shopping centre firm Sonae Sierra and Caelum Development, a specialist retail developer in Eastern Europe have established a 50:50 joint venture for the development of Parklake Plaza in Bucharest. The project is one of Europe's biggest shopping centres with a total gross investment volume, excluding VAT, of some EUR 591mln. It is scheduled to open in April 2011.

Situated on 8.2 hectares, close to the city centre, Parklake Plaza will have 110,000m² of GLA and includes 443 shop units with 3,300 underground car parking spaces.

Álvaro Portela, CEO Sonae Sierra said: 'Bucharest is the most economically-developed and industrialised city in Romania, producing around 21% of the country’s GDP as well accounting for one-quarter of the country’s industrial production. The immediate neighbourhood is very densely populated, resulting in a catchment area up to 10 minutes driving, of approximately 475,000 people, and for 30 minutes, of approximately 1.5 million inhabitants. I am very happy that Sierra and Caelum have become partners for the development of such innovative and dominant project'.

Caelum Development's CEO, David Sharkey, commented: 'Parklake Plaza will provide the inhabitants of Romania’s capital city with a completely unique and diversified offer of unprecedented quality: anchor tenants include Cora hypermarket, the 14-screen Cinema City multiplex, the very best national and international brands, high fashion, and an exclusive entertainment offer.'

Sonae Sierra entered the Romanian market by acquiring the River Plaza Mall in Ramnicu Valcea, and is currently developing two new shopping and leisure centres with a total investment of over EUR 293 mln in Craiova and Ploiesti. Caelum Development has been active in the Romanian market since September 2006, and in January 2007 Caelum sourced the Parklake Plaza plot in association with Ri Investments.