IULIUS is strengthening its development strategy with a new syndicated loan facility amounting to +305 million Euros. It is an action in premiere, being a unitary refinancing of a portfolio of multiple buildings, with distinct functions, part of a mixed-use project – Palas Iași. The loan is granted by a bank syndicate comprising Erste Group Bank Austria, BCR, Raiffeisen Romania and Raiffeisen Bank International Austria. The financing will provide the required capital for the remodelling of Palas Iași, and will support the implementation of the company’s projects under development.
The first urban regeneration mixed-use complex in Romania, Palas Iași, opened in 2012, remains a landmark for real estate projects in Romania, a model of good practice in the implementation of a public-private partnership and a hub of regional, economic, touristic and social development. It is a project with competitive performances in the domestic profile industry, both in terms of financial results, as well as the recorded number of visits, which exceeded 22.2 million last year. For this project, IULIUS got a refinancing of more than 305 million Euros, representing the first unitary loan granted to a portfolio of multiple buildings with various functions – retail, office, entertainment, events center – integrated into a mixed-use project. It is a loan granted by a syndicate of banks led by Erste Group Bank Austria, as principal agent, along with Banca Comercială Română, Raiffeisen Romania and Raiffeisen Bank International Austria.
“IULIUS stands for the leading real-estate developer who beyond the pure commercial logic creates substantial value-added for the communities where they invest. Palas Iași hereby, the flagship among the IULIUS’ projects, is one of the most successful, sustainable urban-revitalization projects in Romania and the wider region, and Erste Group Bank AG is particularly proud for having been able to contribute to its sustainable financing”, stated Marko Brekic, Senior Client Executive Erste Group Bank AG.
“IULIUS has successfully completed a major step in the optimization of the resources and costs related to the loan portfolio, by signing a refinancing of 305.6 million Euros. It is a strong confirmation, on banking and real estate level, of the relevance, impact and quality of the IULIUS’ projects, where the synergy of the retail, office and entertainment functions strengthens their position as regional business, shopping and lifestyle destinations in the long run, and increases their resilience. With this transaction, the IULIUS group reaches a historic landmark in 2025, with a total of financing of more than 700 million Euros attracted within a year, also including the largest green loan obtained by a project under development – RIVUS Cluj-Napoca, of +400 million Euros in May. It is a result that provides the liquidity required for the development of the new projects that IULIUS is doing. At the same time, we continue our strategy of diversification of the lender base, by adding Raiffeisen Romania and Raiffeisen Bank International Austria to the portfolio of national and international banking partners, alongside Erste Bank, a strategic partner strategic of the group”, said Marius Perșenea, Chief Operating Officer of IULIUS.
Palas Iași, under remodelling
IULIUS has kickstarted the remodeling of Palas Iași mixed-use complex based on a concept signed by the acclaimed architecture firm Foster + Partners. The new phase focuses on optimizing and showcasing the uniqueness of the project: the park and green spaces, experiences for all ages, connection with the Palace of Culture, and diversity of the shopping and dining area.
The remodelling of Palas will involve architectural interventions that will showcase the connection with the Palace of Culture, and the Atrium, the central area of the retail building will have generous glazed areas for more natural lighting, while also providing a spectacular view towards the iconic building of Iași. With this phase, the total retail area will reach 80,000 leasable sqm. There will be store expansions and new flagship store formats implemented for our current main anchors, first-to-region brands focused on fashion, department store, jewelry, sports, cosmetics, playground areas for children and entertainment centers for all ages, as well as new food & beverage concepts.
Palas Garden will also undergo remodelling, including the creation of new promenade routes, waterfalls, relaxation spaces, and open air activities. Also, the conference center, Congress Hall will be relocated to a new area, enjoying a spectacular view toward the Palace of Culture, and will include 4 halls provided with a capacity of 1,000 seats, and state-of-the-art facilities. The remodelling of Palas Iași also targets the esplanade of the “Luceafărul” Theater for Children and Young People, one of the access points to the complex. The works have already started in this area, which will become a greener space and include relaxation areas, restaurants and terraces, an open air urban amphitheater, as well as family oriented facilities. The underground works will also allow the creation of additional retail spaces, directly connected to the mall.
About Palas IașiIULIUS takes the first unitary refinancing in Romania granted to a buildings portfolio of various functions integrated in a mixed-use project: 305 million Euros
Opened in May 2012, Palas Iași is the largest real estate investment in the north-east of Romania, adding up to more than 320 million Euro. Located next to the Palace of Culture, Palas is the first mixed-use project in Romania and includes: 270-plus stores, seven class-A office buildings (75,600 sqm), plus Palas Campus, the largest office building in Romania developed in close proximity (60,000 sqm), an events center, a 4* hotel, themed restaurants and coffee shops, a park spanning on 50,000 sqm, carousel, seasonal skating rink, and other leisure facilities, as well as the largest underground parking facility in Romania accommodating 2,500-plus parking places. The distinctive and complex mix of shopping and entertainment in Palas draws more than 22.2 million visitors every year, including visitors from the Republic of Moldova.
IULIUS Company is a developer and operator specialized in ample mixed-use urban regeneration projects based in Romania, with more than 25 years of real estate experience and operating in four major Romanian cities, namely Iași, Timișoara, Cluj-Napoca, and Suceava. Its investments add up to more than 1.3 billion Euro. The company portfolio comprises two mixed-use projects (Palas Iași and Iulius Town Timișoara), the nationwide Iulius Mall network (Iași, Cluj-Napoca, and Suceava), two Family Market convenience retail projects (Iași), and 15 office buildings in Iași, Timișoara, and Cluj-Napoca. The portfolio includes more than 242,000 sqm of premium office space, 320,000 sqm of retail space and the projects are regional market leaders, drawing more than 73 million visitors every year. The company is currently developing two other major urban reconversion mixed-use projects located in Cluj-Napoca and Constanţa, these investments being estimated upwards of 1.3 billion Euro.
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