This session is aimed for all real estate and property professionals.
For further information please contact:
Monalisa Musteata I mail: [email protected] I tel.: +40 721 482 072
Speakers: Marc Porath - Managing Director (Drees & Sommer), Anton Stroe - Director (Drees & Sommer).
CORRECTION: TOP 50 OFFICE DEvELOPERS
In the last issue, in the Top 50 Office Developers listing, we failed to include GTC Romania, due to a mistake in the editing process. GTC should of course should have made the listing, in view of its project City Gate Complex, a 48,000 sqm project completed in 2010. We regret the omission.
RAIFFEISEN EvOLUTION INvESTING €150 M IN FLOREASCA MALL
The Austrian real estate de- veloper Raiffeisen Evolution will complete Floreasca Promenade Mall in October 2013 following an investment of around €150m. The Austrians began work on the mall after obtaining €100m in financing towards the end of 2011 from the Austrian bank Raif- feisen. The center will have a lettable area of 55,000 sqm, and is to be divided into four
levels, with over 120 stores and 1,300 under- ground parking spaces. The exclusive letting agent for the project is the Austrian-based Krammer & Wagner. It’s been offering space in the shopping mall since the spring of 2010, the project itself having been announced in 2008. The start of construction was delayed due to market conditions.
ATENOR POSTPONES PIPERA OFFICE PROJECT
The Belgian company Atenor, which launched a €30m in- vestment in an office building in Bucharest’s Pipera district, has stopped construction pending signs of a market recovery and to take advantage of lower costs for construc- tion works. As recently as autumn 2010, the company said it didn’t need bank financing to build its 18,000 sqm building, which is part of the Hermes Business Campus busi- ness park. The project calls for the construc- tion of three office building on a 15,000 sqm
plot near the Pipera metro station in northern Bucharest. Atenor ended 2011 with assets of €278m, with turnover up 3% to €36.5m.
vITAN AND BERCENI CON- NECTING ROAD CONSIDE- RED IN BUCHAREST
General Capital Counselors, planning consultants for the city of Bucha- rest, are deciding whether to recommend that a road linking the Vitan and Berceni districts should be built. It’s estimated that construction would run to about €8m, while the 3.6 ha of land purchases necessary for the project would cost another €8.3m. The 2.4 km Nicolae Grigorescu - Dudesti Splai connection would be built in the south-east of the city, including an overpass over the Dambovita river. The project has received a favorable judgment from the committee of transportation and heritage, but was delayed by the city’s legal and economic committees.
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PALAS IASI TO OPEN MAy 31
The Palas Iasi mall, part of a €260m retail scheme, will be inaugurated on May 31, said Iulian Dascalu, owner of Iulius Group. The opening is later than the company had projected, with the delay being blamed on the severe winter conditions this year, temperatures dropped to -30 degrees and the country came to a near standstill because of snow. The delay was partially caused by the bad weather in February, when temperatures dropped to -30 degrees. Tenants include H&M, C&A, Waikiki and Stefanel, Village Cinemas and the Inditex group, which recently signed a deal to open six stores in Palas Iasi. The mall will open 97 percent leased.
NEPI SEEKS PLANNING FOR 45 METER
BUILDING IN BUCHA- REST
The NEPI Group is interested in building a development on Aviatorilor Avenue No. 8, but it could be blocked by planning is- sues. The project has been presented at the city hall’s technical commission on urbanism, but it hasn’t been approved
yet because planning regulations for the area prohibit the construction of build- ings taller than 13 meters. The project can only move forward according to me- dia reports if an urban plan for Victoria Square is approved for the area.
NEW RECEIvERS FOR IBIZA SOL INSOLvENCy
At the beginning of the year, the Bucharest Court decided to open insolvency proceed- ings with the developer of the luxury project Ibiza Sol. Its main creditors, Raif- feisen Bank and Alpha Bank, have now decided to assign a new receiver, Euro Insol, the company which is also han- dling insolvency proceedings in the case of the Asmita Gardens complex. Ibiza Sol is a 14-building project located in Pipera which was completed three years ago. Just 98 of the 304 apartments were ever sold, none of which were sold in the last nine months. The development repre- sents an investment of €60m, of which €38m was borrowed by Raiffeisen Bank and Alpha Bank.
HONKA FINNS ENTERS ROMANIAN MARKET WITH WOOD HOUSES
The Finnish wooded house manufacturer Honka has entered on the Romanian market, offering homes that begin at €40,000, with a usable area of 70 – 80 sqm. The price for only one sqm goes for between €300 and €1,200, depend- ing on the specifications. The homes can come with built in electric network, fireplaces, and saunas. Honka homes will be made by the company Finn Land Busi- ness, the exclusive importer of the brand in Romania. Finn Land Business is owned by Romanian businessman Cristy Baisan
who said that the wooden house concept is still new in Romania but insists there’s potential for them. The first Honka house has been built in the mountainous area of Azuga, while a second seaside dwell- ing could be built by the end of May 2012.
HOME COMPLETIONS FALL IN 2011
Last year, there were 44,456 housing units com- pleted in Romania, a decrease of 4,356 compared to 2010. In the last quarter of the year, 15,372 were put into use, 1,308 fewer than the same period in 2010. The number of homes built with public funds in 2011 rose by 554 homes, while those using strictly private capital fell by 1,862. Geographically, the biggest decrease in the fourth quarter was registered in Bucharest-Ilfov, where a fall of 859 units was recorded. It was followed by the northwest region (down 383 units). In the southeast, however, 405 more homes were delivered in Q4 2011.
RENTS FALL 3.5% AT MILITARI
Atrium European Real Es- tate saw net income from its retail park at Militari Shopping Center fall by 3.5 percent to €6.6m. It said the drop was because of discounts it offered to tenants of the scheme. Gross revenues at Militari fell to a similar degree from €7.8m to €7m. Atrium announced that its Romanian portfolio of properties were now valued at €71.3m, up from €68.9m in 2010. The fund has properties in Poland, the Czech Republic, Slovakia, Russia, Hungary and Romania. Militari Shopping Center, which opened in 2003, covers 51,400 sqm and is located in the Western part of Bucharest.