BUCHAREST REAL ESTATE CLUB

“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.

“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.

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.

MINDSPACE -GLOBALWORTH – 12,000 SQ. M, PRE-LEASE

Romania became the 7th country in which Mindspace offers its workplace solutions, following a leasing agreement with Globalworth for 12,000 sq. m in Globalworth Campus, City Offices and Bucharest Tower Center. Moreover, as part of their collaboration, Globalworth will become Mindspace’s shareholder by investing USD 10 million in the company. By entering Romanian market, Mindspace is expanding its portfolio to 28 locations in Europe and the United States, being present in 7 countries and 13 cities.

THALES – ORHIDEEA TOWERS, 5,300 SQ. M, PRE-LEASE

Industrial group Thales has pre-leased 5,300 sq. m in CA Immo’s Orhideea Towers, which is to be delivered this year. The deal was brokered by JLL. The two towers of the project will have 13 and 17 floors, with surfaces up to 2,700 sq. m per floor and two underground floors each. The property is located in the Center-West sub market, a key location for the Austrian investor, which has acquired earlier this year  Campus 6.1 from Skanska in the area.

MEDICOVER- THE BRIDGE 2, 4,500 SQ.M, PRE-LEASE

The fourth place is occupied by two deals in the same building, as Medicover has pre-leased in Q2 4,500 sq.m in The Bridge 2, in order to bring together under the same roof all of its entities: Medicover, Synevo, Synevo Central Lab Clinical Trials and Software Development Competence Center. The company will open a clinic on an 840 sq. m area at the ground-floor of the building, while the rest of 3,700 sq.m will host the management and operational teams of the company’s group.

LONDON STOCK EXCHANGE – CAMPUS 6.1, 3,000 SQ.M, PRE-LEASE

CBRE advised London Stock Exchange Group (LSEG) in the leasing transaction of 3,000 sq. m office space for a new Business Services Centre in Bucharest. The center will open later this year in Skanska’s Campus 6.1. The building is located in the Central-West area of Bucharest, near the Polytechnic University, a strategic location chosen by the British company. LSEG will initially employ 200 people across a range of roles.

“We are pleased to announce the opening of our new shared services center in Romania. Romania offers LSEG a highly-skilled workforce, a strong education system and good infrastructure”, said James Nunn, Head of Group Property, London Stock Exchange Group

CAMPUS 6.1, 2.200 SQ. M, PRE-LEASE

The Center-West submarket is the star of the Top 10 Deals in Q2, gathering a total of six deals. CBRE assited a company active in the computers & ti-tech sector for a 2,200 sq. m deal at Campus 6.1.

Campus 6 includes four office buildings with a total leasing area of 81,000 sq. m, the first building foolowing to be opened in Q3 2018. The project will include 7,000 sq. m of green areas, an amphitheater to gather social & business meetings, restaurants and coffee shops, as well as a running track on the roof.