EBRD supports major urban regeneration project in Cluj-Napoca

Cluj-Napoca, Romania’s second-largest city, is set to undergo significant urban redevelopment with the support of a €180.3 million loan from the European Bank for Reconstruction and Development (EBRD). The funding is part of a broader financing package valued at up to €400.6 million, aimed at transforming a former industrial site into a large mixed-use development that will include entertainment, retail, cultural, and office spaces, alongside public infrastructure improvements.

The project is being led by Rivus Investments SRL, a Romanian-incorporated company jointly owned by Iulius Group and Atterbury Europe. Of the total EBRD-backed financing, €132.8 million will come directly from the Bank, while €57.5 million will be co-financed by commercial lenders. Other financial partners in the wider package include Erste Bank, BCR Romania, and BRD Groupe Société Générale.

The development will feature approximately 132,500 square metres of gross lettable area and include the repurposing of two historical buildings into a performing arts centre and interactive family entertainment venues. Office and retail units will also be part of the project.

In addition to commercial spaces, the initiative includes major public infrastructure upgrades. These will encompass new roads, two pedestrian bridges and a four-lane road bridge over the Somes Mic River, new roundabouts, an advanced traffic management system, and improved public transport connectivity. Plans also involve the rehabilitation of a public square, new parking facilities including electric vehicle charging stations, and the creation of 52,000 square metres of green space through parks and urban gardens. Upon completion, elements of the infrastructure will be transferred to the Municipality of Cluj for public use.

“This project represents a major step in urban regeneration and aligns with the EBRD’s Real Estate Sector Strategy 2025–2029, which places emphasis on sustainability, accessibility, and community-focused development,” said Vlaho Kojakovic, Director of Real Estate at the EBRD. He noted that this is the EBRD Real Estate team’s largest urban regeneration project signed so far in 2025.

Iulian Dascălu, President of Iulius Company, said the initiative will transform the site into a contemporary, mixed-use destination while preserving elements of the city’s industrial heritage. He described it as a future regional hub that will offer a combination of retail, culture, business, and leisure opportunities.

Iulius Group is an experienced developer in Romania, known for large-scale urban projects such as the Palas complex in Iași and Iulius Town in Timișoara. Atterbury Europe, its joint venture partner, has a presence in Romania, Cyprus, and Serbia, and has co-invested with Iulius in several regeneration projects across the country.

The EBRD has been active in Romania since the early 1990s and has so far invested more than €11.5 billion across 560 projects, with a focus on promoting green transition, private sector development, and sustainable urban growth.