Immoeast announced acquisition of shopping centre in reginal city of Baia Mare, Romania. The shopping centre will provide 43,000 sqm of rentable space and the project is expected to be completed in 4Q2008. Immoeast acquired 80% of the project, while the remaining stake will be acquired upon completion. Total investment should reach EUR 97m.
Our view: As company mentioned before SPO, the Romanian market is the prime area of interest to place raised proceeds. Market yields in the retail segment in Romania are around 7.0%, while in the CEE region these stands at around 5.75-6.0%. We expect rent could be EUR 20/sqm/month. Existing shopping space per capita in Romania stands at some 20 sqm per 1,000 inhabitants, while the CEE average is some 135 sqm per 1,000 inhabitants. We see this acquisition positively.