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COTROCENI PARK

COTROCENI PARK
Status: Real Estate

COTROCENI PARK

Romania

In 2002, NCH funds acquired an unprofitable industrial company with underutilized land in Bucharest, with the land ultimately being developed into one of the most successful and largest retail complexes in Romania. With Romania then on track to join the EU (as it did in January 2007), NCH projected a rise in disposable income, consumer spending, and increased demand for high-quality premises from international and domestic retailers. The country at the time faced a shortage of modern retail developments, and NCH saw an opportunity to capitalize on these trends. NCH formed Cotroceni Park by separating the land from the industrial business and subsequently sold 50% of the project to an international developer through a JV arrangement. The venture partner went on to construct a large shopping and entertainment center with a diverse mix of high-end retail: 250 stores, 30 restaurants, a 20-screen theater and 2,500 parking spaces. By 2007, over a year before the scheduled completion, Cotroceni Park was 80% pre-leased. NCH funds sold their remaining 50% investment at the end of 2007 to the venture partner. Later, in 2018, NCH funds sold a neighboring plot to the same venture partner.