AFI Europe signed a non-binding letter of intent with Plaza Centers NV to acquire the majority stake in the Casa Radio project, in downtown Bucharest.

The total value of the offer amounts to 60 million Euro, the company announced in a press release. Casa Radio, whose construction started during the communist regime, is one of the largest unfinished projects in Bucharest.

Plaza Centers, which was a subsidiary of Israeli group Elbit until the end of 2018, reportedly invested 85 million Euro in demolishing part of the Casa Radio structure, plus design and foundation consolidation until 2010 when the project entered into preservation, Romania Insider reads.

Plaza Centers is currently in the process of exiting the Romanian market, where it also owns several land plots for development, which it bought before the 2008 crisis. If the Casa Radio deal goes through, AFI Europe will become the majority shareholder in this project with a 75 per cent stake. The Romanian state controls 15 per cent of the project, and third-party investors hold the remaining 10 per cent.