In April, Immobiliare Grande Distribuzione (IGD) finalised the acquisition of Winmarkt shopping centre network in a deal worth 182.5m euros.
The new owners of Winmarkt believe the Romanian shopping centre market will match Italy's within the next five years, a reason why they will make significant investments in the recently acquired properties to counter competition.
"We've budgeted investments of 20 to 25m euros to improve and refurbish some of Winmarkt locations and in various other services, such as advertising," Filippo Carbonari, IGD CEO, told ZF.
"In five years we want to have a strong portfolio, with efficient buildings, so that we can successfully cope with the ever rising competition," states Carbonari.
The Italian company took over from US NCH a network of 15 shopping centres in various cities in Romania, with the move being among the few real estate deals conducted earlier this year and by far the biggest in terms of value.
The Romanian shopping centre market is witnessing considerable growth, with the number of malls doubling each year, in the context where investors have announced projects that could drive the commercial inventory to around 100 units in the following years.
"Last May we decided to expand outside Italy to boost and diversify our portfolio. We looked at countries similar to Italy, both in terms of population and macroeconomic portfolio, as well as the development cycle of the shopping centre market," says Carbonari.
Negotiations started last August-September and ended in late April. IGD now has a real estate portfolio worth 1bn euros and the firm wants to reach 2.3-2.4bn euros by 2012.
IGD
In April finalised the acquisition of Winmarkt shopping centre network, a deal worth 182.5m euros
Has budgeted investments worth 20 to 25m euros to improve and refurbish some of Winmarkt
