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€150 million secured for TriGranit’s shopping center in Zagreb

Hungary’s TriGranit and a consortium of six international banks signed a contract valued at €150 million for financing of the building of TriGranit’s Arena Zagreb. The contract guarantees the full realization of the building of one of the largest and most modern shopping-entertainment centers in the region.

“The project represents the largest direct foreign investment in the building sector in Central Eastern Europe since the start of the financial crisis,” TriGranit said in a press release. The shopping-entertainment center, to be opened at the end of 2010, valued at 244 million euro and covering an area of 175,000 square meters, will trigger a liquidity effect within the industry given that 2,500 workers will be on the site during the construction phases, while upon opening 3,000 new jobs will be created.

The six banks that TriGranit contracted with are Intesa SanPaolo, Erste Group AG, Hypo Investmentbank AG, Cassa di Risparmio Della Repubblica di San Marino S.P.A., MKB Bank Zrt and CIB Bank Zrt.

“The Arena Centar project has already had an impact on the development of modern infrastructure and communal networks in Zagreb’s south-west. Aside from generating new jobs it will also inject new funds in the city and state budgets through taxes and communal contributions,” said TriGranit Zagreb Director Vlaho Kojaković.

“This contract is a great sign of trust in the industry and the region. It is also a sign of TriGranit’s confidence in Zagreb and Croatia - one of the main markets on which we are focusing,”TriGranit Chairman Sándor Demján added.

Arena Centar will be built by a consortium of Croatian companies, Mucic & Co, Medimurje Graditeljstvo and Tromont. Construction works are now in full swing.

The majority of Arena Centar’s retail space has already been leased out. The center will incorporate 10 anchor stores, more than 200 other stores, a 10,000 square meter hypermarket, café bars and restaurants and a 9-screen multiplex cinema. (press release)