First Romanian mall to file for insolvency sells for EUR 30.5 mln

Newsroom 21/06/2010 | 10:56

Tiago Mall in Oradea, which filed for bankruptcy in May, was sold for EUR 30.5 million to a firm whose headquarters coincide with Baneasa Investments’ location, from an asking price of EUR 35.5 million. The auction was organized by the Transylvania House of Insolvency and the project developer’s liquidator, MLS Project Oradea, subsidiary of Mivan, the Irish Group.

The original investment for Tiago Mall was EUR 65 million, credit obtained from UniCredit Austria and UniCredit Tiriac Bank.

“The project was won by Shopping Center at a price of EUR 30.5 million, plus VAT,” Vasile Pop, the liquidator’s representative, told media. Shopping Center Holding is 90 percent held by the Cypriot firm Karias Trading Limited, while Ciocoiu Dumitru owns the rest, according to the Trade Register’s National Office.

Tiago Mall filed for insolvency even before it was finished. The mall market in Romania is becoming over-saturated in such shopping destinations and, consequentially, malls from Sibiu and Braila had to be closed due to the lack of tenants and clients, say insiders. However, Tiago Mall is the first mall to have filed for insolvency.

Corina Dumitrescu