Bankrupt Bucharest Property City Mall Up For Sale At EUR29.5M

Auction entry literature will be filed by April 18, according to the auction announcement.

The first auction, set for March 31, failed to collect any bids.

The shopping center went bankrupt in November 2010, mainly because owner Victoria Holding was unable to pay the financial costs involved in its purchase in 2006. At that time, the Australian-owned company paid EUR100 million for the mall.

According to the preliminary chart of debts, the three banks that financed the project stand to collect a total 176 million lei (EUR1=RON4.1333). In total, the three lenders funded Victoria Holding with EUR67.3 million when the company bought the mall and built a nearby parking lot.

City Mall has a total surface of 38,000 sqm and a lettable area of 19,000 sqm. The center includes 80 stores, one cafe and restaurant area, as well as a movie theater operated by City Cinema.