The ParkLake Plaza shopping center in Eastern Bucharest took a step forward today with the signing of a joint venture agreement to develop the project. Portuguese developer Sonae Sierra returned to the project and signed the JV with Caelum Development. The two companies did something similar in 2008, a year after the project was first announced. The project was since changed a couple of times, and in the end, the joint venture was canceled, only to be re-started this year.

The firms have not yet given any schedules, either for construction to begin or a projected completion date, but they have valued investment at EUR 185 million. The two firms indicated that the deal is a straight down the middle 50:50 arrangement.

For the time being, the joint venture is" working on the design optimization, further leasing contracts to be signed with new brands, and focusing on obtaining the right financial solutions, which together will define the exact construction start timing,” according to a statement.  The developers claim that 52 percent of the space has already been leased and that negotiations over a further 13 percent of the GLA are at an “advanced” stage.

Earlier in 2011, Caelum announced its plans to start work on a EUR 250 million mall in the summer of 2011, but nothing changed on site.

The shopping center will adjoin the existing Titan Park in Bucharest on the premises of a former sports base and offer 67,000 sqm of gross leasable area (GLA). Beyond commercial space, sports and leisure facilities are planned, as well as a green area connecting to Titan Park.

Sonae Sierra is keen to promote ParkLake Plaza as a sustainable development. Energy efficiency technology will be employed and the center will be built in compliance with the firm's certified Environmental Management System.

ParkLake Plaza will include a food court, a 16-screen Cinema City multiplex, a Cora Hypermarket, Pure Fitness, Flanco, Douglas, Zara Home and the usual fashion store suspects (H&M, Mango, ZARA, OYSHO, Pull & Bear, Stradivarius, Massimo Dutti, Bershka).

Sonae Sierra specializes in developing and managing shopping centers. The company currently owns 51 centers and has a presence in 11 countries in Europe, North Africa and South America. Irish owned Caelum Development, headquartered in Warsaw, Poland, has operated for over ten years on the European real estate market. The firm has 36 European property projects in its portfolio, including 21 retail centers.

Liam Lever, liam@romania-insider.com