British-based Westhill is set to develop Ploiesti's largest commercial project on a 10-hectare plot, in partnership with Lewis Charles Securities investment fund (listed on AIM market of the London Stock Exchange), with investments worth 100m euros.
The shopping centre (Magnolia Center) will have an area of 120,000 square metres and will also include leisure space. "The financing of the Ploiesti project will come from bank loans and from Lewis Charles Securities investment fund. Construction works will start next April and end in late 2009 or early 2010," Andrei Panculescu, the commercial and acquisitions manager of Westhill's Romanian office, told ZF. The only other shopping centre in the city is Grant Center Ploiesti, which is owned by Winmarkt.
Ploiesti is one of the most industrialised cities in Romania, with a low unemployment rate that ranges between 3-5%, and has managed to attract shopping centre developers that seek locations with a high purchasing power. As a result, another 3 shopping centres have been announced during the past year: Tiago Mall (developed by Irish-based Mivan), Perla Shopping Center (an investment by Israeli group W-GO) and Euromall (developed by a group of firms controlled by Israeli and French businessmen).
Westhill, which arrived on the Romanian market last year, has changed its initial strategy, which entailed the development of office buildings, with the company currently targeting shopping centres and residential projects.
For the Ploiesti project, Westhill set up Retail Park Magnolia, which was acquired from Lewis Charles British investment fund in August for 6.7 million euros. Subsequently, Retail Park Magnolia paid 6.3 million euros for the 10-hectare plot of land where the shopping centre will be developed.
"The new shopping centres, malls and retail parks should have more green area
