BUCHAREST REAL ESTATE CLUB

Decor Floor will launch this year the B2B architecture materials digital marketplace in Romania, according to CEO Octavian Moroianu. He estimates the company will reach a turnover of EUR 18 million this year, with automation being key for securing future growth. 

How would you describe 2021 from the perspective of your company? What were the main objectives you achieved last year?

2021 was a year of recalibration for Decor Floor. After 2020, that taught us the valuable lessons of being adaptive and reactive at the speed of light, in the last year we redesigned our structure, strategy and market position. In the last eight months of 2021 our company went through a complete rebranding process and today we are ready to start a new chapter that will mark our biggest evolution. 

Being already a mature company on the market, we found the necessary resources to start the rebranding process while accomplishing numerous other important milestones.

An important turning point for Decor Floor in 2021 was the delivery of several contracts for interior glass partitions, which sum up more than EUR 500,000. This achievement, together with the refurbishment works executed for an important office building on Barbu Vacarescu Boulevard, complete the bigger picture that Decor Floor is projecting for the next years.

At the same time the company delivered one of the most complex projects in Romania so far – @EXPO by ATENOR, that included 7100 sqm of ventilated façade system for buildings B1 and B2, more than 18,000 sqm of raised access floor and 2,400 sqm of floor and wall ceramics. In 2022 the project is scheduled to be completed with another 7,800 sqm of ventilated facades system and 24,000 sqm of raised access floor, for the completion of building A. Moreover, Decor Floor was contracted for 4,500 sqm of complete fit-out works, for a major tenant at @EXPO. This project will be implemented in 2022.

The complexity of these projects impacted our organization at different levels, including Logistics & Warehousing. To be able to follow the complexity and dynamics of our projects we decided to upgrade our warehouse location in ELI Park 1, from 1,300 sqm to 2,500 sqm.

From an operational point of view, in 2021, we experienced some project delays due to workforce shortages. The rising cost of materials and supply chain disruptions also had a negative impact on the total margin of the company. These are factors that seem to continue affect the market in 2022, but now we are closely working with all our partners to identify effective methods to cushion the impact on projects. 

Decor Floor’s financial evolution is marked by a growth turnover trend. In 2020 the company surpassed the pre-pandemic volume of business with 10%. In 2021 the turnover was 40% higher compared to 2020, and up by 50% versus 2019. 

Which are your main goals in 2022? (business, culture, company, market, etc.)

2022 is likely to be an exciting year for us. We forecast a turnover of EUR 18 million based on a strategic mix of diversity and complexity of the targeted projects. 
This is an organic growth of the company that will be marked by the launch of a new corporate identity. 

The new brand, “wemat,” focuses on the power of community raised in the first 17 years of presence on the Romanian market. Wemat is a composed name of two words – we and matter – that communicates one of the main values of the company – togetherness – as well as the strength and expertise of our team, which impacts the undertaken projects.

For us outstanding matters, which is why our mission is to create the highest level of quality experience for our customers, which exceeds their expectations.

One of the major objectives for Wemat in 2022 is launching a new business line – the very first B2B architecture materials digital marketplace, in Romania. The 1.0 version will be live during Q2/2022 and it will firstly be available for our current customers to facilitate faster response times regarding inquiries and orders. The second phase, beginning Q3/2022, will push the platform towards clients with whom we are not currently developing B2B relationships. The investment in 2021 was EUR 120,000, and in 2022 it represents more than 10% of the company’s budget.

While the new strategic brand aims to strengthen our leader position in the market, it is also designed to empower its employees by creating new career opportunities. In 2022 the total direct employees’ number in Romania will increase from 50 to 64 people. 

With the new workforce added, we will focus on contracting more projects from the Medical, Education, Hospitality and Sports segments. 
All the departments within the company work in a CRM system, completely developed by us since 2016. In 2022, more than ever, this will play an important role by optimizing the dynamics between departments. We successfully create cross-functional working and efficient planning for the company’s objectives.

The newly defined vision of the company is to build an esteemed ecosystem where to provide turn-key solutions for fit-out projects, in the construction industry. We are committed to do so while ensuring a positive and prosperous impact on society. For us, this is just as important as delivering premium products and services! One of the most rewarding feelings is working with enthusiastic associations that are invested in helping and improving people’s lives. In 2022 we will continue to partnership with NGOs like Asociația Ajungem Mari, Sothis, Autism Voice, Inocenti, Artsafari and Asociația Studenților de la Mincu.

What trends will shape the market in 2022 from your perspective?
Last year’s retrospective outlines the personality and complexity of the business environment in 2022, which continues to focus on better new technologies, rethinking the standard office spaces and deepening the concepts of sustainability and safety. 

We are aware that the market will be struggling for the better part of the year, as the pandemic context is not over yet, and its aftermath is felt all through every supply chain. It is a sure thing that the way of doing business has to change including the way of designing buildings, or construction processes.

At the same time, there is a growing interest for projects in the medical and educational field, with an emphasis on the technical quality of products and services. We strive to offer and deliver the perfect package for each project, especially of this kind, because we believe that these segments are one of the most important investments during a lifetime, improving and saving the lives of thousands of people.

Automation will be one of the main pillars in 2022. Human creativity backed by digitization technology manages to facilitate business innovation and constant adaptation to market needs. These technologies provide a high level of predictability and efficiency – technologies that improve customer service, but also the internal organization of a successful company.

Whatever the 2022 trends might be, #WE are always ready to build and adapt to a better tomorrow, while focusing to be our best version today.

After securing a new investment of EUR 1.5 million in 2021, Bright Spaces is looking to expand in new markets and continue to hire staff. Bogdan Nicoara, CEO & Cofounder Bright Spaces, outlines the plans of the startup for 2022 and the accelerated usage of technology in property industry.

How would you describe 2021 from the perspective of your business? What were the main objectives you achieved last year?

Last year was very encouraging for us. Bright Spaces is growing fast, showing the absolute need for such a solution. Soon enough, technology will be integrated into all business processes, and real estate makes no exception. Leasing and showcasing are about to be transformed forever, through a more innovative approach that includes virtual staging, web-based platforms for any building, interactive online tours, intuitive administrative dashboards, and many more.

2021 was filled with successes we are so proud of and grateful for. We managed to:

• secure our second investment round of EUR 1.5 million, led by Axeleo Capital and with the participation of Pi Labs, Sparking Capital, Growceanu Angel Investments, and a group of business angels.
• grow our team from five people (in May 2020) to almost 30 (December 2021).
• launch new platforms for our clients and sign new partners.
• focus on our company culture and our ESG policies and on how we will integrate these in our work. 
• become more visible through earned media and content marketing.

What are your main objectives in 2022? (business, culture, company, market, etc.)

This year is critical for our evolution. We want to expand to new markets, and with a continuously improved version of our product that will serve our clients’ dynamic needs in a post-pandemic, tech-first world. This means, of course, attracting new talent to the team, while maintaining the same TEAL culture, built on self-management, drive, and accountability. Sustainability will be one of the main topics on the table for us in 2022, as we are looking for ways to have a good social and environmental impact. 

What do you think are the main trends that will define 2022?

More than a trend, Environmental, Social, and Governance (ESG) goals must become principles and drivers for action in 2022 and beyond. All industries, tech and real estate included must find new and better ways to work. We are at a turning point where every step we take is critical for our future as humankind. 

I think that 2022 will also be defined by high-tech in real estate. We now have advanced VR and AR technologies, emerging metaverses, and a whole range of services that can digitally transform real estate. We do not have time for small progress anymore – clients expect state-of-the art technologies from their providers and when it comes to CRE, we want to be the one providing these services through our leasing and highlighting platform.

Among the main trends shaping for 2022, Sebastian Gutiu – Managing Partner of Schoenherr  –  mentions a considerable number of transactions. „And probably a record number of real estate project developments in all sectors, from retail to residential”, he states.

How would you describe 2021 for the business of your company? What were the main achievements of your company last year?
2021 was an Anniversary Year for our company. It has been 25 years since Schoenherr entered the Romanian market. It was a year of introspection, in which we looked closely at what we had accomplished, at the lessons we have learned in this quarter of a century and at our next steps.

We have reached the end of the year stronger and more united than we have ever been. We had learned a lot from the current situation: it’s not ideal but it’s not the end of the world either. We can navigate through unpredictable times because we know the direction we are heading to. Last year’s achievements were limited to the growth we have seen in areas such as litigation and arbitration, insolvency and competition law. We maintained our strong position in the areas established in the company, mergers and acquisitions, financial banking, capital market, real estate (including in transactions and real estate developments, as well as in construction).

Which are your main objectives for 2022?

As a team, we will continue to be well prepared in our mission to satisfy our clients’ needs. More knowledgeable, more experienced, just as anchored in the realities of the market. We will continue to focus on developing our services and moving in new directions.

How do you see the main trends shaping for 2022?

If I refer strictly to the real estate sector, it is expected that the year 2022 will bring a considerable number of transactions. And probably a record number of real estate project developments in all sectors, from retail to residential.

Legislation is unlikely to become stable too soon and we expect further changes in this area, including in real estate and construction. Then, the main dilemma in the real estate sector will be regulation: which projects will receive a building permit and under what conditions, how difficult will it be to get a PUZ?

Schoenherr is a regional law firm operating in Central and Eastern Europe and South East Europe, with 15 offices. Opened in 1996, Schoenherr’s Bucharest office was one of the first international firms on the Romanian market. Schoenherr si Asociatii SCA assists local and multinational companies on business law issues. Its real estate and construction lawyers provide legal services on transactions and developments in all sectors of the real estate market.

Among the main objectives for 2022, Ștefan Vayna, CEO, MASTERBUILD – General Contractor & Property Developer, estimates an increase of at least 30% in the turnover of the company, reaching around 25 million euros. More about his plans and the main trends shaping for 2022, find out in the interview below:

How would you describe 2021 for the business of your company? What were the main achievements of your company last year?

The last 30 years have taught us that “normal” means constant change and fewer moments of stability. Last year, the business environment showed maturity through a very active dynamic.

The events we attended in 2021 helped us to strengthen the team. The fact that MASTERBUILD  has expertise in crisis management, gained in the 2009-2011 period, gave us the confidence to move forward. Since September 2021, we have resumed the activity of external development. We also build in other parts of the world – including military bases in Africa or various other targets in Europe. And recently I was able to resume this activity.

Which are your main objectives for 2022?

In 2022, we expect an increase of at least 30% in turnover, so that we will reach around the figure of 25 million euros, with a profit margin between 8-10%. We will reinvest about 70% of the profit.

How do you see the main trends shaping for 2022?

If, until last year, there was a lack of predictability in government policies, now it applies to construction and prices and delivery times. Probably a strong shock will come from somewhere, but if we have a vision and go towards it, any new shock will be just an event from which we will have something to learn from and it will certainly make us stronger.

MASTERBUILD – General Contractor & Developer is one of the most dynamic construction & logistics and industrial development companies in Romania.

Founded in the early 2000s in Bucharest, the company develops general contracting activities, specialized enterprise (core & shell constructions), sale of construction materials and equipment, as well real estate development.

The company operates throughout Romania, in various cities and development regions, as well as on international markets, in Europe and on other continents.

MASTERBUILD builds (in whole or in part) industrial and logistics halls projects, logistics parks, retail stores, production facilities. The company also builds projects in the field of special constructions, such as military bases, special research centers, embassy

Among the main trends shaping 2022, Laimonas Luizys, Managing Director at Peikko Romania, estimates that competition will remain strong in the construction industry. How Peikko further sees the market, find out from the interview below.

How would you describe 2021 for your company’s business? What were the main achievements of your company last year?

2021 was a year of a roller coaster for all construction industry and it didn’t bypass Peikko Romania as well. Significant increases in raw material prices had a major impact, moreover freight availability and cost were challenging us, energy prices sky-rocketed at the end of the year. Peikko Romania grew strong in 2021, but it could have been stronger without the mentioned turbulence. On the other hand, it was a great test for sustainability of our business and I can state that due to dedicated team efforts, we passed it. By the end of the year we concluded investment of 1 million euros into increase of production capacity and start of a new production line of components for precast concrete products. Our total turnover grew by 50% and local sales in Romania by 43%.

Which are your main objectives for 2022?

Our main focus is customer satisfaction, we will continue delivering top quality products in shortest possible lead time. To support our main goal, we will focus on the improvement of production process to be capable to cope with peak demand expected in the middle of the year. This year we also plan further strong growth of turnover as last year’s investments become fully functional and already contribute to production output.

How do you see the main trends shaping 2022? 

The start of this year looks to be more stable than the previous, however last couple of years proved how fast a situation can change based of various unpredictable factors. For sure, competition will remain strong in construction industry for many aspects: competition in sales, human resources, branding. Upside is that now the industry players are stronger, better prepared, more flexible and ready to adapt in short term. All in all, I estimate a further growth of construction industry, raw material prices will remain at a high level, but should not go significantly up anymore, just usual short-term ups and downs. The other aspect for increasing prices in the end user market might be a result of disbalance between demand and availability. To conclude – it will be a good year to come.

Peikko Romania was established in 2018 and is a part of Peikko Group Corporation. Peikko Group Corporation is a leading global supplier of slim floor structures, wind energy applications and connection technology for precast and cast-in-situ. Peikko has sales offices in over 30 countries in Asia-Pacific, Europe, Africa, the Middle East and North America, with manufacturing operations in 11 countries. Peikko is a family-owned and managed company that employs over 1,800 professionals. Peikko was founded in 1965 and is headquartered in Lahti, Finland.

In 2022, Dragos Bonea aims to transform his business, Delta Studio from a materials supplier into a turnkey interior supplier. How will he do this?  Also, his plans include the start of two of his own real estate projects with a total value of EUR 10 million.

How would you describe 2021 for the business of your company? What were the main achievements of your company last year? 

Delta Studio ended 2021 with a revenue increase of approximately 12% and a profit increase of approximately 15%. The company focused on innovation, process optimization and strengthening smart luxury positioning. We have reached the targets established early 2021.

Among them:

• The development of “Vernis Sunrise Villas” residential project, consisting of a set of 25 premium houses, built in a “gated community” system, in Corbeanca, IF. The investment value was about EUR 4.5 mil. + VAT. The deadline for their completion is June 2022.
• We laid the foundations of DSD – Delta Studio Design, our own office of architecture & interior design. Through this, we address both B2C and B2B end – customers (developers, constructors). The results were fast and therefore we scaled this business direction by expanding the number of fellow architects, from 6 to 20. The projects carried out by DSD – Delta Studio Design was awarded in 2021 at the Property Awards (UK) and in within the Architecture Annual.
• We started a DSI partnership program – Delta Studio Inside, through which Delta Studio provides the entire interior concept, from concept to project, materials and work execution, with active involvement in promoting and selling the project, including through co-branding. Some examples of CIO projects that started in 2021: ArtCity Residential Ensemble, in partnership with Bog’Art, CEC Bank, Level 2, Core-New Times, etc.

Which are your main objectives for 2022?

In 2022 we aim to transform our business from a “materials supplier” to a “turnkey interior supplier”.

In this regard, we focus on expanding and consolidating the architecture office, DSD.

• We are working on the development of our own team, which will ensure the execution of the works, according to the standard imposed by our company.
• We will start our own 2 real estate projects, with a total value of EUR 10 million. For the first time, I have already bought the land.
• We are starting the preparations for the construction of the new logistics center in Giurgiu County. The purchased land has 25,000 m². The estimated investment is about EUR 10 mil. and will extend over 2022 – 2023.
• We want to continue the digitization activity and for this step, we estimate an investment of EUR 500.000 in 2022.
• For 2022 we have budgeted a 25% increase in turnover as compared to 2021.

How do you see the main trends shaping for 2022? 

We are optimistic. The segment of our company (smart luxury) is correlated with the residential market, which is also growing for 2022. The preferential 5% TVA rate for residential properties up to EUR 140,000 euros from January 1 boosted the demand on this segment.

In addition, our ability to integrate 100% interior design, so that we take responsibility for the entire project, is a strong differentiator, appreciated by most customers in this segment.

…

Delta Studio appeared on the Romanian market at a time when the terms “interior architecture” or “interior design” were vague and inaccessible and the offer of interior finishes was extremely limited.
Dragoș Bonea is the founder and general manager of Delta Studio, a business that initially started in 1996, by selling ceramic tiles for interior design.

The company led by Dragoș Bonea has evolved and adapted permanently over time. Delta Studio currently operates a community-supported professional solutions platform in the fields of architecture, interior design and construction. The company sells a varied portfolio of products, dedicated to interior architecture, through its own network of stores, available in the main cities of the country, but also online on deltastudio.ro.