Real estate investor Globalworth, controlled by Greek businessman Ioannis Papalekas, with several investments in Romania, has contracted two loans worth some EUR 17 million turn the former City Mall shopping center in Bucharest into offices, according to the fund's most recent financial report.

The fund is yet to draw EUR 3 million of these loans, which have maturity dates in November 2014 and March 2019.

Bancpost also lent the fund EUR 8 million, the Globalworth is yet to draw that amount. A EUR 2.9 million loan was also taken from Marfin Bank, due to be repaid in May 2014, and a EUR 3.2 million from UniCredit, with a maturity in November 2014. The fund also took two loans worth some EUR 3.2 million from Piraeus Bank, which covered the Floreasca One development costs in Bucharest.

“The Group withdrew EUR 4.1 million from the Bancpost facility out of which EUR 2.5 million was paid for founder's loan to the Company and EUR 1.3 million for construction cost of City Office building while the remaining amount funds VAT receivable,” according to the fund.

Greek Papalekas bought the former City Mall shopping center in Bucharest for EUR 17.3 million, after the mall went insolvent in 2010. Papalekas had previously owned and sold the mall to APN European Retail for some EUR 103.5 million.

The mall will become offices, some 20,000 sqm, with a commercial galleria to be located at the ground floor, where Mega Image already opened a store.

Globalworth posted revenue of EUR 8.1 million for period ended December 31, 2103, while its net asset value totaled EUR 126.2 million. Its pre-tax profit was of EUR 13.7 million for the full year.

"Globalworth believes that global investor capital flows will gradually move from markets considered as 'safe havens' to more peripheral markets such as Romania and the broader SEE and CEE regions in search of higher yielding investments," the firm said.

The full report can be read here (in English, in pdf).

editor@romania-insider.com