A joint venture project of Sonae Sierra and Caelum Development has secured a new €83 mln financing facility from a syndicate consisting of OTP Bank and Hypo NOE Gruppe Bank for the development of a new shopping centre in Bucharest.
A joint venture project of Sonae Sierra and Caelum Development has secured a new €83 mln financing facility from a syndicate consisting of OTP Bank and Hypo NOE Gruppe Bank for the development of a new shopping centre in Bucharest.
The seven-year loan will be used to finance the construction of the €180 mln project, which is located in the third district of the Romanian capital and will serve 1.5 million inhabitants in its catchment area.
The mall is expected to open its doors in 2016.
'The signing of this financing contract represents an important milestone for the ParkLake project as a whole,' said Fernando Guedes de Oliveira, CEO of Sonae Sierra. 'It is also a clear sign that the banking market is slowly opening again for development finance, and this is crucial for a company like Sonae Sierra. Our strategy is focussed on shopping-centre and mixed-use development, and project-finance is a key component of our financing model.'
The joint venture was advised by Nestor Nestor Diculescu Kingston Petersen throughout the process, working with CMS Cameron McKenna SCA for the lenders’ legal team.
