13.04.2007
Mivan Consortium To Develop Romanian Retail Network
Mivan, the international specialist contractor and property developer has announced a half-billion euro investment to enhance Romania's retail infrastructure.
Mivan (www.mivan.com), backed by Irish developers, Moritz Group, confirmed today [13 April 2007] that it will develop a complex of 10 major shopping malls throughout Romania.
This is believed to be one of the largest Romania's retail investment announcements.
Property Director, John Houghton confirmed that 7 sites had been secured, with three additional sites under negotiation. Development of all 10 shopping malls should be completed by 2010:
"We have secured key sites in Romania's main cities and we intend to transform the country's shopping and retail experience. Romania may be the EUs newest member, but its economy is growing fast, even by global standards.
"The retail infrastructure is relatively underdeveloped and consumer demand for European-style retail outlets is intense. This, combined with growing interest by international retailers in investment opportunities, has convinced us that the 10 retail malls will be highly successful.
Romania has a population of about 22 million with half the population living in cities and urban areas. Despite its relatively recent emergence from communism, Romania's economy has grown at an average of 5.8 per cent per annum over the past five years. That makes it one of Europe's fastest-growing economies.
In Bucharest and the west of country, unemployment has fallen to about 2 per cent.
The first seven of Mivan's retail malls will be in Romania's key cities of Arad, Oradea, Brasov, Tg-Mures, Ploiesti, Bacau and Sibiu. Real estate consultants, Colliers International have been retained as the lead advisors to the mall-letting programme.
All ten proposed malls to be known as the TIAGO MALLS will occupy prime sites, close to main urban areas and will each provide between 25,000 and 30,000 square meters of lettable retail area. The developer says each mall is aimed at attracting international retailers, as well as domestic stores. Facilities will include cinemas, restaurants, food halls and extensive on-site parking.
John Houghton confirmed that discussions had already begun with a number of leading European retailers:
"Romania is proving an attractive alternative for retailers facing growing competition and rising costs in many European markets:
"The country's remarkable economic growth is driving up disposable incomes, particularly in urban areas, while increased travel and recent EU membership is creating a demand for a shopping experience and for retail stores, not currently represented in Romania.
"Romania offers some of the best investment potential in the EU and we are confident that both retailers and shoppers will benefit.
Notes for Editors:
1. The Mivan Group (www.mivan.com) is one of the world's leading specialist construction companies, with offices in the UK, Europe, USA, Middle East and Far East.
2. Mivan has been working in Romania since 1998 as part of the Mivan-Kier joint venture, delivering a $140 million water and social housing contract for the Romanian government, which has won two international construction awards.
3. Besides the TIAGO MALLS, Mivan is developing a number of other retail and residential projects in Bucharest, including Liberty Center and NewTown Residence, a development of 655 apartments in the Distor area. The first apartments will be completed in autumn 2008.
4. The Moritz Group is one of Ireland's leading property development and investment companies. Established for over 25 years by Mick Whelan the group has diversified from its roots in residential development to encompass commercial development, property investment and builders merchants. In recent years Moritz has worked closely with ARCL (www.arcl.ie) to expand its UK and European activities.
5. Moritz have been active in Romania in its own right since 2005 and as well as the today's 10-mall announcement, development, the Group has a number of large residential and commercial development sites in and around Bucharest where construction activity is expected to start in late 2007
6. Colliers Macaulay Nicolls Inc., and certain of its subsidiaries, is an independently owned and operated business and a member firm of Colliers International Property Consultants, an affiliation of independent companies with over 240 offices throughout more than 50 countries worldwide.
In Romania, Colliers International has become the leading commercial property firm and provides complete real estate consultancy services.
