EBRD supports urban regeneration project in Cluj-Napoca

The European Bank for Reconstruction and Development (EBRD) is lending EUR 180.3 million for a major urban regeneration project to revitalise Romania's second city, Cluj-Napoca, transforming an industrial site into a major entertainment, retail, cultural and office mixed-use project while improving the surrounding infrastructure, reads a press release of the international financial institution.Of the total loan to Rivus Investments SRL, a company incorporated in Romania, EUR 132.8 million will be provided by the EBRD and EUR 57.5 million by commercial lenders. The EBRD loan is part of a larger financing package of up to EUR 400.6 million, including Erste Bank, BCR Romania and BRD Groupe Société Générale S.A."The funds pave the way for the development of the largest mixed-use urban regeneration project in Cluj-Napoca. It features the development of 132,500 square metres of Gross Lettable Area (GLA) commercial and entertainment space, through the consolidation and conversion of two historical buildings into a performing arts centre, office space and interactive family entertainment centres," the release reads.The investment also entails substantial infrastructure improvements to benefit the entire area, including the development of road, bike, and green infrastructure. Two pedestrian bridges and a four-lane vehicle bridge will be built over the Somes Mic River. The plan also features two new roundabouts, a road, an advanced smart traffic light system and the rehabilitation of a public square, car and bike parking spaces with electric vehicle charging stations, a park and urban garden (52,000 sqm green spaces). Part of the infrastructure development will be donated to the Municipality of Cluj upon completion for use by the community.'We are pleased to partner with an experienced local developer on this landmark urban-regeneration project in Cluj-Napoca. By transforming a long-neglected site into a vibrant public space, the initiative will both enhance the city's landscape and advance the goals of the EBRD Real Estate Sector Strategy 2025-2029, where urban regeneration is a core pillar. It also marks the Real Estate team's largest urban regeneration project signed so far this year, a milestone we are extremely proud of,' said Vlaho Kojakovic, Director of Real Estate for the EBRD.Rivus is 50 per cent owned by Iulius Group Romania and 50 per cent by Atterbury Europe.To date, the EBRD has invested more than EUR 11.5 billion in 560 projects in Romania.