Romanian investor Gheorghe Iaciu, who developed the Expo Market Doraly commercial centre in Afumati, north-east of Bucharest, has hired real estate consultancy firm JLL to test the market in order to sell the commercial centre.

In 2008, he sold 50% of the project to HSBC’s global real estate and infrastructure investment platform which was the subject of a management buy-out in 2011 and developed into InfraRed Capital Partners, which today manages over USD 16 billion in assets.

The project is valued at EUR 114 million, Iaciu told Profit.ro.

The 28 hectares of land on which the project was developed are valued at EUR 54 million while the buildings are evaluated at EUR 600 per sqm.

Currently, the buildings have 92,000 sqm but a new retail park of 10,000 sqm is being developed.

This results in a total value of the buildings of around EUR 60 mln. Expo Market Doraly generated EUR 12.2 mln revenues and EUR 3.1 mln net profit in 2018.

The revenues are expected to rise (to EUR 13.5 mln this year) as the owners are phasing out the incentives extended to tenants during the first years of recession.

Iaciu said that it’s the first time he and his partners test the market and that the current period is a good window of opportunity for a deal in which both the sellers and the buyers would get a good deal.

Iaciu also owns the Doraly mall in Constanta, the Moldova Center în Iași, a former mall turned into offices, and a 56% stake in residential developer Impact Developer&Contractor, which is listed on the Bucharest Stock Exchange.

(Photo courtesy of the company)

editor@romania-insider.com