November 2 (SeeNews) - Brussels-based investor in European retail parks and convenience centres Mitiska REIM said on Monday it has secured a 33 million euro ($38.5 million) senior debt facility with Erste Group Bank for investments in four retail parks in Romania.
Located in Baia Mare, Braila, Bistrita and Drobeta Turnu-Severin, the four parks have a combined gross leasable area (GLA) of 30,500 sq m, Mitiska REIM said in a press release.
"After the successful refinancing of our Intercora portfolio in Romania last year with Erste Group Bank, we are very pleased to have extended the cooperation with our banking partner and secured financing of these four newest retail parks. We consider it a clear testament to the strength and resilience of retail parks during the COVID-19 pandemic and their ongoing appeal to financing partners, investors, retailers and shoppers alike," Mitiska REIM investment Director for CEE region Tomas Cifra said.
Proceeds of the financing will be used for the completion of a new development project in the city of Baia Mare, which is scheduled to open in the second half of 2021. The park will have a gross leasable area of 8,200 sq m.
The other three retail parks which are to be refunded through the facility are located in Bistrita, Braila and Drobeta-Turnu Severin, were developed by Mitiska REIM and its local partner Square 7 Properties.
The Bistrita development opened in 2017, while the Braila and Drobeta-Turnu Severin retail parks opened in 2019.
"By offering a combination of essential shopping, value for money and convenience on urban infill locations, retail parks across Europe have proven to be the long term winning retail format which have continued to perform strongly in recent months, with footfall rebounding to pre-Covid levels since the end of May," Mitiska REIM co-CEO Axel Despriet said.
In total, Mitiska REIM and Square 7 Properties presence in Romania now covers 26 retail parks representing a total retail area of more than 110,000 sq m.
"We are witnessing a clearly growing popularity of the retail park concept in Romania and continue to see ample opportunities to grow in Romanian regional cities, with a current pipeline of four development projects coming soon under construction and opening in the course of 2021," Square 7 Properties CEO Clemens Petschnikar said.
Mitiska REIM is a privately held specialist real estate investment and fund advisory firm headquartered in Brussels. It is focused exclusively on the niche of peripheral retail properties in Europe, both retail parks and convenience centres.
($=0.8569 euro)