Bankrupt Bucharest shopping center City Mall failed to draw bidders in the fifth auction, set for June 30, thus the liquidator, Casa de Insolventa Transilvania, will sell the unit through direct negotiation, according to Mediafax newswire.

"There were no buyers for the task book in the fifth auction. Over the next two weeks we will meet with creditors and move to direct negotiation. We will no longer decrease the price," liquidator official Radu Lotrean told Mediafax.

In the auction set for Thursday, the starting price had been set at EUR 20.96 million, compared to EUR 24 million at the previous auction attempt, in March. In this latest auction, the price was 40% lower than the initially established one.

City Mall went bankrupt in November 2010, after owner Victoria Holding, a unit of Austria’s investment fund APN European Retail Trust, was unable to repay the loans taken for its construction. According to the preliminary chart of debts, the three banks that financed the project stand to collect a total 176 million lei (over EUR41.75 million).

City Mall has a total surface of 38,000 square meters and a rentable area of 19,000 square meters. The center includes 80 stores, cafe bar and restaurant areas, as well as a movie theater operated by City Cinema.

editor@romania-insider.ro