Bucharest Real Estate Club

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Investment briefing: strong fundamentals for Romanian real estate market

Investment briefing: strong fundamentals for Romanian real estate market 1920 1280 Bucharest Real Estate Club

Investment briefing: strong fundamentals for Romanian real estate market

Romanian real estate market has strong fundamentals and an eventual correction will be a moderate one, that was the conclusion of the most important investors and consultants during the Investment Briefing roundtable organized last week by Bucharest Real Estate Club at Athenee Palace Hilton, in Bucharest.

The event was attended by top real estate professionals, IT companies and representatives of international chamber of commerce in Romania. Itay Banayan, VP, Real Estate for Mindspace, one of the most recent companies to enter Romanian market with a strong leasing deal of 12,000 sqm, Mihai Zaharia, Director of Investments & Capital Markets, Globalworth, Robert Miklo, Director, Investment Services, Colliers International Romania, Marian Popa, Ori Efraim, Head of Real Estate, KPMG, Oana Motoi, Managing Partner, Cromwell Evan Global and Roxana Dudau, Associated Partner, Noerr were among the speakers.

“The office segment remains our core area for portfolio development, but we are also looking more carefully towards the logistic sector. We have such a project in Timisoara that we are developing, but we are also analyzing other cities for new investments, such as: Cluj, Sibiu or Constanta. We choose to develop because there aren’t enough available products on the market”, Mihai Zaharia, Director of Investments & Capital Markets, Globalworth said during the event.

“When the next dip arrives, it will likely be shallow, supported by balanced, robust fundamentals in markets,” Robert Miklo, Director, Investment Services, Colliers International Romania argued in his presentation. He added: “Internal migration patterns will drive real estate with a strong hand and growth will come from regional hubs mostly.”

“Landlords that implemented the last valuation reports at the end of 2016, should reassure to update them until March 2019, to avoid paying the property tax at an increased quota of 5%”, said Oana Motoi, Managing Partner of Cromwell Evan Global, a recent established company active in the tax & business advisory fields.

In a premiere at a business event on the Romanian market, Itay Banayan, VP, Real Estate for Mindspace spoked about new workspace format: “We provide high-end, flexible, tech-enabled workspaces for our member-based communities of large enterprises, small businesses and entrepreneurs. We are organizing and hosting hundreds of events every month, such as lectures, workshops, networking events, tech talks or professional meetups. This is our way of making Mindspace the center of attraction for the local ecosystem. It helps to create an outstanding reputation as well as attract new customers,” he said.

The workspace format triggered quite a debate. Marian Popa, Country Manager for Deutsche Bank Technology Center which employs now 900 people in Bucharest commented: “Our employees work one day per week from home. This initiative determined the decrease of our space need by 15%. New operators such as Mindspace are good news for us because they offer a cheaper and more efficient solution. The market should reorient towards <<services area>> or else the buildings will be partially empty until 2030.”

Commenting on what can Romania implement in the legal field, in order to be more attractive for investments in real estate and to attract the long awaited institutional investors, Roxana Dudau, Associated Partner of Noerr, said: Granting fiscal incentives in Bucharest for green buildings (already implemented in Cluj Napoca and Timisoara) could attract more institutional investors. Bucharest is the city with the biggest number of green buildings and such incentives are not yet granted.”

Ori Efraim, Head of Real Estate, KPMG, presented the conclusions of the “Property Lending Barometer 2018”, a survey among 70 banks from 14 European countries: “Most Romanian banks in the KPMG survey emphasized the importance of real estate financing in their banking strategy. In comparison with last year’s query, about 40% of respondents have increased their focus on the sector significantly whilst the remaining 60% have maintained their positions. All of the banks are open to provide financing to income generating projects, whereas only 40% are open to finance new developments”, he said.

The topics discussed at the roundtable have also been presented in the media, generating new subjects on the public agenda:

Capital -> https://bit.ly/2RTDDvC
Economica -> https://bit.ly/2zOClL2
Capital -> https://bit.ly/2PXZCny
Adevarul -> https://bit.ly/2QEYumb
Economica -> https://bit.ly/2T8gF5e

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Who’s Who: Gábor Futó, Co-founder, Futureal

Who’s Who: Gábor Futó, Co-founder, Futureal 428 350 Bucharest Real Estate Club

Who’s Who: Gábor Futó

Co-founder, Futureal

BIOGRAPHY

Gábor Futó co-founded Futureal group with his father, Péter Futó. Futureal is currently active in 5 countries: Hungary, Poland, Romania, Germany and the USA. Under his leadership, Futureal has become one of the top 20 developers in Europe. Previous gold medalist of the International Mathematical Olympiad, Gábor Futó received his MSc in Mathematics from Eötvös Loránd University, Budapest in 1999, his MBA from London Business School – BUES Program and has been visiting fellow in 1998, 2000 and 2001 at Harvard University (Economics PhD Program) and Harvard Business School (MBA Program). Gábor and Peter Futo also participated through Finext Startup Venture Capital Fund Management at the initial public offering of Globalworth, the company founded by Ioannis Papalekas.

ABOUT THE COMPANY

Futureal is a leading real estate developer and investor in CEE and one of the top 20 largest developers in Europe. The group is a family owned enterprise with an exceptional team of around 170 real estate professionals and projects valued at 1,6 billion EUR. The vision of the group is to work in close, long-term partnership with cities, tenants and investors. Futureal developed Corvin Plaza, the largest urban regeneration project in CEE, several office and shopping center projects in Hungary, Poland and Romania and has also founded a residential subsidiary, Cordia. In Romania, the company developed Gold Plaza shopping center together with Immofinanz, residential condominium Cordia Parcul Privighetorilor and has now under development a new large residential scheme near Expozitiei area.

Who’s Who: Laurentiu Lazar, Colliers Romania

Who’s Who: Laurentiu Lazar, Colliers Romania 1720 1704 Bucharest Real Estate Club

Who’s Who: Laurentiu Lazar

Managing Partner, Colliers Romania

BIOGRAPHY

Laurentiu has over 11 years of experience in real estate services including valuation, advisory and investment. He joined Colliers in 2007 as a real estate valuer and in 2009 he started to head the Valuation and Advisory Services, with the responsibility to expand the valuation team in Romania. Over the last five years, the valuation team has appraised over 500,000 properties. In 2015 Laurentiu extended his area of expertise and became Head of Investment, having the main responsibility of developing the Capital Markets services. Since then, the investment team managed to originate, structure and successfully close transactions exceeding EUR 500mn. He was later appointed as Senior Partner within Colliers International Romania in 2016 and now is the managing partner of Colliers on the Romanian market.

ABOUT THE COMPANY

Colliers International is an industry-leading real estate services company with a global brand operating in 69 countries and a workforce of more than 12,000 skilled professionals serving clients in the world’s most important markets. Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.
In Romania, Colliers International is one of the leading real estate agency, offering a complete range of real estate advisory services.

Who’s Who: Ruxandra Grinzeanu, Raiffeisen Property Romania

Who’s Who: Ruxandra Grinzeanu, Raiffeisen Property Romania 400 275 Bucharest Real Estate Club

Who’s Who: Ruxandra Grinzeanu

Managing Director, Raiffeisen Property Romania

BIOGRAPHY

Ruxandra Grinzeanu is Managing Director of Raiffeisen Property Romania, a real estate developer operating in CEE, a 100% subsidiary of Raiffeisen Property International. In Romania, the company owns two landmark properties, Sky Tower and FCC Building. The two outstanding office buildings are located in Bucharest’s most dynamic office area – Barbu Vacarescu-Floreasca, being occupied by tenants such as Raiffeisen Bank, Peli Filip law firm or Oracle and Nor Restaurant, one of Bucharest’s most exclusive restaurants, located at the 36th floor of Sky Tower. Ruxandra has a bachelor’s degree in Financial Management & Banks from Constanta University, she is a member of The Charted Institute of Management Accountants and she also holds an MBA. Before joining RPR in 2010, Ruxandra has previously worked for companies such as Rompetrol, Mega Image and River Invest.

ABOUT THE COMPANY

Raiffeisen Property International (RPHI) develops, manages and sells real estate in Austria and on CEE markets. RPHI, the real estate competence center of Raiffeisen Bank International, offers a full range of in-house development and other real estate related services. The integration into the banking network of Raiffeisen Bank International provides security and support in the regions of CEE and South-Easter Europe, which enables the real estate division to implement and pursue long-term strategies. In Romania, the company owns two landmark properties, Sky Tower and FCC Building. The two outstanding office buildings are located in Bucharest’s most dynamic office area – Barbu Vacarescu-Floreasca.

Who’s Who: Remon Vos, CEO, CTP

Who’s Who: Remon Vos, CEO, CTP 800 500 Bucharest Real Estate Club

Who’s Who: Remon Vos

CEO, CTP

BIOGRAPHY

Remon established CTP together with two other investors in 1998 to develop full-service business parks for investors doing business in Central Europe. Since the start, he has been CTP’s managing director and takes a hands-on approach to running the business. Remon’s focus is to grow the company’s portfolio and platform of services, and to develop and strengthen relationships with long-term business partners.

ABOUT THE COMPANY

CTP specialises in the delivery and management of custom-built, high-tech business facilities for leading international and domestic companies making strategic investments in new or expanded operations in Central Europe. In Romania the company has a large portfolio of premium industrial parks, strategically located in Bucharest, Cluj, Deva, Pitesti, Salonta, Sibiu, Timisoara and Turda.

Who’s Who: Fulga Dinu, Operations Country Manager, Immofinanz Romania

Who’s Who: Fulga Dinu, Operations Country Manager, Immofinanz Romania 1063 560 Bucharest Real Estate Club

Who’s Who: Fulga Dinu

Operations Country Manager, Immofinanz Romania

BIOGRAPHY

Fulga Dinu is Operations Country Manager at Immofinanz Romania and coordinates the company’s development on the office space and retail centre markets. Before joining Immofinanz, she occupied top management positions such as CFO of Iulius Group and Country Manager of Eurohypo (part of the Commerzbank group), the German bank which financed the real estate projects of Anchor Group in Romania.

ABOUT THE COMPANY

Immofinanz has a significant presence on the Romanian market, with 10 class A office projects and four shopping malls in key-locations nation-wide: Cluj-Napoca, Constanta, Pitesti and Baia Mare. The company consolidated its operations on the office and retail markets and introduced the group’s international brands to Romania: myhive for offices, VIVO! for retail centres and Stop Shop for retail parks.

Who’s Who: Martin Slabbert, Partner, Prime Kapital

Who’s Who: Martin Slabbert, Partner, Prime Kapital 800 533 Bucharest Real Estate Club

Who’s Who: Martin Slabbert

Partner, Prime Kapital

BIOGRAPHY

22 years of real estate, turn-around and finance industry experience

2007-2015: Co-Founder and CEO, New Europe Property Investments plc; 2005-2006: Partner, Deloitte Central Europe (Corporate Finance); Prior to 2005: CFO Premier Foods on secondment from Nedbank; General Manager in the capital management cluster of the Nedbank Group; Senior Vice-President for shareholders’ funds, member of the Executive Committee at Nedcor Investment Bank; HSBC Investment Services (Africa) (Pty); Arthur Andersen.

ABOUT THE COMPANY

Prime Kapital is an integrated real estate developer, investor and operator.
The company focuses on Central and Eastern Europe, investing predominantly in retail assets, selected residential projects and opportunistically across other real estate segments.
Prime Kapital has a portfolio of more than 20 projects, comprising mainly development projects in various stages of completion and several income properties.

Who’s Who: Marian Roman, Managing Director, CA Immo, Romania

Who’s Who: Marian Roman, Managing Director, CA Immo, Romania 780 490 Bucharest Real Estate Club

Who’s Who: Marian Roman

Managing Director, CA Immo, Romania

BIOGRAPHY

Marian Roman is one of the most respected real estate professionals on the Romanian market, with a career spanning over 15 years. Between 2003 and 2007 he was the Managing Partner of BSS, transforming the company in the leader of the property management sector. Beginning with 2007 he was the Regional Managing Director of Europolis in Romania up to 2011, when the company was acquired by CA Immo and Marian was appointed Managing Director for the Romanian office of CA Immo.

ABOUT THE COMPANY

CA Immo is a specialist in office properties in Central European capitals, with subsidiaries in six countries in the region. Since 2001, Romania is a CA Immo core market. The company’s portfolio comprises of prime office buildings such as Europe House, Opera Center, Bucharest Business Park, River PLace, Orhideea Towers and Campus 6.1.

Who’s Who: Alexandru Morar, CEO, NEPI Rockcastle

Who’s Who: Alexandru Morar, CEO, NEPI Rockcastle 800 500 Bucharest Real Estate Club

Who’s Who: Alexandru Morar

CEO, NEPI Rockcastle

BIOGRAPHY

Alexandru Morar was appointed as joint chief executive officer of NEPI Rockcastle on 15 May 2017. Alexandru graduated with a dual degree in finance and information systems from Stern School of Business, New York University. He began his career as an analyst at Julius Baer Investment Bank. He later joined the financial advisory practice of Deloitte Romania where he spent two years working on large projects and M&A transactions. He joined NEPI upon its founding in 2007 and has contributed to all aspects of the business since then. Before August 2015 (up to his appointment as NEPI’s CEO), Mr. Morar focused primarily on NEPI’s investments and acquisitions programme throughout Central and Eastern Europe. As NEPI’s CEO, he contributed to the significant increase in the company’s portfolio as well as further growing its team and asset management platform.

ABOUT THE COMPANY

NEPI Rockcastle is a commercial property investor and developer, listed on the Main Board of the Johannesburg Stock Exchange Limited (JSE) and Euronext Amsterdam. The Group has an exceptional property portfolio with dominant position in Romania, Poland and Slovakia and strong presence in Croatia, Bulgaria, Hungary, Czech Republic and Serbia, progressing with a retail expansion programme in other Central and Eastern Europe markets.

Who’s Who: Ioannis Papalekas, Founder & CEO, Globalworth

Who’s Who: Ioannis Papalekas, Founder & CEO, Globalworth 810 456 Bucharest Real Estate Club

Who’s Who: Ioannis Papalekas

Founder & CEO, Globalworth

BIOGRAPHY

Founder of Globalworth, Ioannis Papalekas has nearly 20 years of real estate investment and development experience, predominantly in Romania, having created one of the most successful real estate development and investment groups in the Romanian real estate market. He has significant experience in the acquisition, master planning, development, reconstruction, refurbishment, operation and asset management of land and buildings across all major asset classes in Romania. Before founding Globalworth, Ioannis was responsible for the acquisition, development and successful disposal of more than 400,000sqm of commercial (office, retail and logistics) space and 1,000 residential units in Romania.

ABOUT THE COMPANY

Globalworth is a leading real estate company with a primary focus on Poland and Romania, the two largest markets in Central and Eastern Europe (CEE). The company acquires, develops and manages commercial real estate assets, primarily in the office sector. In Romania, Globalworth has built a unique portfolio, valued at €1.1 billion as at December 2017 and establish itself as the leading real estate investor in the country, through acquisitions and developments, including landmark office buildings in Bucharest such as Globalworth Tower, Globalworth Plaza, TCI and, most recently, Globalworth Campus.