AFI wants to build another EUR 50 million mall in Bucharest

AFI Palace Cotroceni, the largest mall in Eastern Europe, was officially launched Tuesday night, after being open for the public on October 29th. On this occasion, the officials of AFI Europe, the developer of the mall, announced they are continuing their investments in Romania by building their second retail project, on the former location of the Laromet plant in Bucharest.

In a press conference, Reuven Havar, CEO of AFI Europe Romania, said the following: "We have already invested EUR 20 million in acquiring the land, and an additional EUR 30 million in the construction itself. Development will begin in the following months, and the mall in the Bucureştii Noi area will be opened in 2011. Even though the economic climate is extremely difficult, we will continue with our investments in Romania". The EUR 30 million financing will come from banks, of which 2 are domestic. AFI will complete the negotiations for taking out the loan in the coming period.

Reuven Havar said that the officials of AFI Europe were surprised by the influx of visitors on the opening of AFI Palace Cotroceni. The mall has 70,000 visitors a day on average, and 100,000 a day on week-ends. With an investment of around 300 million Euros, AFI Palace Cotroceni Mega Fun is at the same time the most expensive project in Romania, and the Israeli developer will also handle the management of the building.

The mall has a 95% percent occupancy rate, and investors claim that the success of the inauguration will bring a 100% occupancy rate by the end of 2009.

Located at the junction between the Vasile Milea and Timişoara avenues of Bucharest, AFI Palace Cotroceni has 250 stores, around 3,000 parking spots, a non-stop "Real" hypermarket, 20 movie theaters. On top of this, it also features the first IMAX theater in Romania, (to be opened on November 19th); a karting track (to open in December); two casinos; a skating rink of 1,000 sqm; a children"s playground; a rollerblading track (to open in one month); the first laser tag arena in Romania; bowling and snooker; a Mini-Express train that will go around the mall, on the ground floor and the first floor (to be delivered in a few days).

The mall has a total surface of 215,000 sqm, and a leasable area of 79,000 sqm. Given the current economic context and the lease system, the investment could be amortized in about ten years. AFI also intends to develop an office building in the immediate vicinity of the mall.