The mall near Bellu Cemetery in Bucharest entered bankruptcy due to EUR 76 million debts.

For the acquisition of City Mall, Papalekas loaned EUR 20 million, shows the document released by Globalworth, the company founded at the beginning of this year for the listing on the AIM market of London Stock Exchange.

Currently, the project is ongoing renovation and repartitioning process. The mall will be reconverted into a six floors office building with 27,155 sqm. The ground floor will host commercial spaces and the rest will be dedicated for offices. The completion of works is scheduled for the end of this year, also shows the cited document.

The developer also waits for the extension permit of the fifth floor, to be obtained in two months. The project will feature a multi-level parking on 28,883 built area and 13 floors, with 882 parking places and commercial area in the ground floor.

14 tenants occupy approx 34% and 48% respectively of the available commercial spaces in the main building and the parking building. The office component wasn’t rented yet, but Papalekas’s company is in advanced negotiations for the takeover of the entire office space by a sole tenant.

The signed lease duration is 5, 10 and 15 years, with rents from EUR 12 to EUR 65/sqm/ month. The main tenants are Mega Image, Vodafone, Pharma Vision, Billa, Max Bet, Piraeus Bank.

City Offices is part of a bank loan of EUR 10 million. Furthermore, the development costs are estimated at EUR 7.1 million, and the bank debts will reach a total of EUR 17 million. (source: economica.net)