Romanian developer IULIUS has begun the most extensive transformation yet of its flagship Palas Iași mixed-use complex, announcing an estimated EUR 80 million investment that will expand retail areas, increase green spaces, and introduce new leisure facilities. The company said the redevelopment will raise its total investment in downtown Iași to more than EUR 520 million.
The upgrade, designed by renowned British architecture firm Foster + Partners, will be carried out in phases to minimize disruption and will not involve new construction but rather a reconfiguration of existing spaces, the developer said. Once completed, Palas Iași’s leasable retail area will grow to 80,000 square meters.
The first phase will focus on the esplanade near the “Luceafărul” Theater for Children and Young People, one of the main access points to Palas. Work will begin with archaeological research, given the site’s location in the historic city center.
Beneath the esplanade, new retail and parking areas will be added, while above ground, the space will be turned into a greener area featuring terraces, restaurants, an open-air amphitheater, and family-friendly zones.
“We are excited to begin the remodeling of Palas, a project that takes urban regeneration to the next level owing to the innovative and sustainable vision proposed by the Foster + Partners team of architects,” said Raluca Munteanu, Development Manager for IULIUS.
The redevelopment comes as international retailers expand into the northeastern city. Brands such as Furla, JD Sports, Nike, Crocs, LEGO, and Levi’s have recently opened stores at Palas, while newcomers like Primark and All Mountain are set to enter the market.
Future phases will include a redesigned atrium with panoramic views of the Palace of Culture, a new congress center with a 1,000-seat capacity, and an upgraded Palas Garden featuring promenades, water cascades, and outdoor leisure spaces.
With more than 22.2 million visits last year, Palas Iași is among Romania’s busiest retail and leisure destinations. IULIUS said the new investment will strengthen the complex’s role as a regional shopping and cultural hub, while contributing to Iași’s urban regeneration and long-term economic growth.
Opened in May 2012, Palas Iași is the first mixed-use project in Romania. It includes 270+ 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-star hotel, themed restaurants and coffee shops, a park spanning 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.
IULIUS Company is a developer and operator specializing in mixed-use urban regeneration projects based in Romania, operating in four major cities, namely Iași, Timișoara, Cluj-Napoca, and Suceava. Its investments add up to more than EUR 1.2 billion.
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 320,000 square meters 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 in Cluj-Napoca and Constanţa, investments estimated at upwards of EUR 1.3 billion.
irina.marica@romania-insider.com
(Photo source: the company)
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