DAN GHIBERNEA Country Manager TriGranit Development Corporation

One of the most important construction projects in Romania is getting under way in the capital, Bucharest

THE LARGEST real estate project in Romania since the end of the Communist era in 1989—and one of the largest in southeastern Europe—the Esplanada Project is designed to transform the center of Bucharest with smart modern buildings that will become emblematic of the fast-changing capital city’s new face.

Extending over a total of 800,000 sqm, the ambitious development will include high-rise offices, a retail and entertainment center, an arts center with theaters, concert halls and museums, as well as hotels and new housing. There has even been talk of asking the Guggenheim Museum to open a center there.

The location for thousands of new jobs, the new center will be served by a new metro station and, in another big plus for a city plagued by traffic problems, will also include 270,000 sqm of parking space.
The initial phase has been costed at €1 billion ($1.3 billion), but it is thought an additional €3 billion could be attracted to the area. Construction of the first phase will take place under a public-private partnership deal between international developers TriGranit Development Corporation and the Romanian government.

Dan Ghibernea, Country Manager of TriGranit Development Corporation, says, “We want to bring the biggest, most valuable tenants here for both offices and retail.” Speaking about the financing for the project, he notes that it could rise to €1.5 billion. “When you start a project like this one, €200 million plus or minus is nothing. We are prepared to pay even more, if necessary. Our estimates were made taking into consideration today’s prices. But since the development will take seven to ten years to complete, it is very difficult to forecast the exact figure.”

About 20-30 percent of the investment will be financed by TriGranit, while the remaining 70-80 percent will come from bank credits.

Esplanada will also give a much-needed boost to real estate development in the southern part of Bucharest, which, until now, has been overshadowed by the highly sought after northern city section.

Regarding the location, Mr. Ghibernea says: “This project is placed in a very populated area, which, through the construction of Esplanada, will become the new center of the city. One of the main advantages, not only for the project but also for the entire city, is the fact that there will be a new, designated metro station, just like there is in Canary Wharf in London.”