BUCHAREST REAL ESTATE CLUB

Shaping a New Era of Development in Southeast Europe

Roxana Dudau, Associated Partner, Noerr
Roxana Dudau, Associated Partner, Noerr 800 642 BUCHAREST REAL ESTATE CLUB

BREC Talks to Roxana Dudau

Associated Partner, Noerr

“There is an increased interest in high quality mixed use projects -mostly involving urban regeneration or reconversion of former industrial platforms- as well as for smart city technologies not only in Bucharest but also in regional cities.“

Roxana Dudau, Associated Partner heads Noerr’s Real Estate & Construction Department in Romania. She is a well-known & reputable real estate expert on the Romanian market. BREC talked with Roxana about the main factors influencing the local real estate investment market, the quality of the products and the pottential of each sector.

Which are the main factors influencing the local real estate investment market?

Apart from the global factors, i.e. global economic fragility, political uncertainty and the global financial environment, the refugees’ crisis, looming trade wars etc. which are com-mon for the entire region, the main local factors influencing the investment market in Romania remain the fiscal and legal unpredictability (amendments in these fields being constantly passed by the authorities), cumulated with a labor-force shortage that pre-vents companies from further growth. Fiscal uncertainty, namely incessant fiscal amendments triggered by the Government’s in-tention to fill the holes in the budget, has a direct negative impact on investors (also in the real estate field) and remains one of the main factor influencing local investment this year as well.

Other fiscal provisions affecting the investment market are the increase of mini-mum wage and the transfer of the social contributions from the employer to the employ-ees.
The relevant legislation for the real estate market seems to be targeted by the authorities, as well, as some law drafts aiming at structural amendment of the construction law and its methodological norms, as well as the preliminary theses of a unified construction and town planning code were recently in public debate.

How do you find the quality of the real estate products developed in the last couple of years? What piece of advice would you give to developers looking to attract investors?

It is clear that the quality of the real estate products developed during the last years in-creased tremendously. All new projects envisage to obtain a green certification, and this is pursued starting with the inception phase. This applies not only for office buildings, but late-ly also for retail and residential products. There is an increased interest in high quality mixed use projects (mostly involving urban regeneration or reconversion of former industrial platforms) as well as for smart city technologies not only in Bucharest but also in regional cities.
The most important piece of advice for investors (especially for larger investments involving urban regeneration) is to conduct a local survey with the aim to involve the local community in the process of creating the concept of the new investment or adapting it to local needs and also to establish a direct communication with the local decision makers/authorities to identify the best means to include the new investment within the larger urban plan of the lo-cality. Big projects often require a strategic approach of extending the existing infrastructure or creating a new one to sustain the new needs resulting from such investments.

What type of products are most sought after by investors in 2018?

I think the office sector shall further expand in 2018. The retail segment will expand as well, but mostly in the regional cities and in smaller schemes, as in Bucharest no new large pro-jects have been announced (except for some extensions). The star of the year 2018 seems to be the residential sector, which will likely record the fastest growth.

5 Things to Consider when Looking to Lease a New Office Space in Bucharest
5 Things to Consider when Looking to Lease a New Office Space in Bucharest 500 308 BUCHAREST REAL ESTATE CLUB

Looking to Lease a New Office Space in Bucharest?
5 Things to Consider when Dealing with Landlords and Real Estate Brokers

Either you are a local or multinational office space occupier, your business needs to have a perfect match when it comes to occupying an office space, especially under today`s costs optimization constraints and qualified workforce shortage.

Before office search and negotiation process become a multiple-resource sponge, here are a few main factors to consider for navigating in the Bucharest office market:

Assign a Senior Project Manager/ Relocation Committee from inside your company

Consider Office Relocation as a strategic project, as it actually is. It impacts your yearly cashflow, employees satisfaction and retention rate, reputation in the market, positioning towards the company`s stakeholders and potentially production/ supply processes. For leading all the phases of office search and negotiation, choose the person/ team in charge based on these essential characteristics: ethics and integrity, negotiation skills, attention to details, strategic thinking, financial understanding, leadership and accountability and, nevertheless, soft skills. Simply think at the amount of your yearly office rent invoice – would you let a process impacting your yearly cashflow in some unexperienced hands?

Do your Homework. Go with a Pro

If your company policies allow you to carry on an agency pitching process, write down a comprehensive brief (with multiple viewpoints from all the internal company stakeholders – i.e. Purchasing Department, Financial, Administrative, HR, Strategy, Public Relations, etc.) and organize a Real Estate pitch for choosing the Real Estate brokerage company that best matches the attributes that are relevant for you (i.e. market know-how, advisory approach, client servicing).  CBRE, Colliers, Cushman & Wakefield Echinox, Knight Frank, JLL or BNP Paribas Real Estate are among the top brokers on Romanian market, but nevertheless a smaller-sized, local agency can also do a good chemistry with you, depending on your company`s needs.

Gross Lease or Net Lease?

Dig the financials and hidden costs, you don`t only pay for what you see. A good advisor or building landlord will be very transparent in explaining all costs triggered by office space leasing (i.e.  maintenance costs, utilities, rent for un-used areas, etc.) – but nevertheless, consider that everybody wants to upsell – so you should better do your financial homework or at least ask the right questions.  Most leases are gross leases or triple net leases. A gross lease means that the tenant pays the landlord one sum and the landlord is responsible for payment of real estate taxes, insurance, and maintenance expenses. In a triple net lease, the tenant pays a set rental amount to the landlord, but also pays a share of the landlord’s real estate taxes, insurance, maintenance expenses, and building utilities.

Independent / Local Landlord or Corporate Building Owner?

It depends on your strategy. Independent, non – institutional developers in Romania tend to be more flexible in various aspects of the negotiation, which turned out to be convenient in many cases (a typical example: when a tenant wants to break the contract exit clauses and leave the building earlier). On the other hand, typical corporate building landlords are well experienced in assets management, corporate clients servicing, hold high standard buildings and facilities, but may come in package with low flexibility or very restrictive contract clauses.

Look well in the Track. Challenge your Advisors and Building Owners

Do they have a portfolio of happy clients/ tenants? Do you know any of the tenants they present in their portfolio, so you can ask for references from the source? Is the building almost fully occupied or is there a large vacancy rate – and why? Why did the last tenant leave the building? Try to gather as many as possible background information and references – a well possible informed decision can spare valuable €€€ and un-necessary future efforts.

Need more insights on the Bucharest Real Estate market? Get in touch with us at bucharest@brec.ro.

New, sophisticated products on Bucharest real estate market: first food hall & lofts apartments on former historic properties
New, sophisticated products on Bucharest real estate market: first food hall & lofts apartments on former historic properties 640 358 BUCHAREST REAL ESTATE CLUB

New sophisticated products on Bucharest real estate market: first food hall & lofts apartments on former historic properties

As Bucharest real estate market is rapidly expanding, investors start to develop new, sophisticated products to reach to a more and more demanding clientele. The initiative follows the European trend under which former industrial spaces are restored and re-converted into products appealing to today’s generations.

EUR 100 M mixed – use project for urban regeneration

One United Properties together with Auchan recently announced plans to invest 100 million EUR in a multifunctional development – One Floreasca City- at the junction of Floreasca and Mircea Eliade roads, downtown Bucharest. One Floreasca City involves three components, integrated in an open project: the former Ford factory will be restored and modernized, following to transform in a contemporary retail space, operated by Auchan Romania, a class A office building – One Tower- and three exclusive blocks of design apartments – One Mircea Eliade.

A new life for an abandoned building

The historic building dates back from 1935, when the American company Ford was manufacturing luxury cars in Bucharest. Under the new development, it will be carefully restored and transformed in a new product for the Romanian market: a food hall and a concept store, with different type of restaurants and services: cooking, gardening and bakery classes, events for kids and family. To respect the heritage of the property, the investor will use for the interior design vintage Ford models, some of them produced in the inter-war years at Bucharest.

Key trends in European food halls sector

The “food hall” concept first appeared in the US, as a mix of authentically prepared food and drink offers with a focus on collective dining and was rapidly adopted on different European markets. A recent Cushman& Wakefield “Food Halls of Europe” study estimated that approximately 100 food halls are either already open or are currently under construction in Europe’s major cities.

Cushman & Wakefield research suggests that the potential for growth is huge. At least 200 venues, totaling over 400,000 sq. m, are in the pipeline for delivery within the next decade. The study indicates some key trends for this sector:

  • Consumer interest in food is a long-term trend – it’s here to stay
  • Eating out is set to increase in many European countries
  • Demand will come from tourists, office workers and local residents
  • Diners are looking for unique experiences and plenty of choice
  • Food offers will need to change regularly to remain current
  • Top quality, ethically-sourced food with a clear provenance is non-negotiable
  • Food Halls are likely to become integrated into wider developments, including shopping centres, public realm improvements and transport hubs

HANNER TRANSFORMS FORMER GRIVITA BREWERY

Under the same trend, Lithuanian-based developer Hanner has started earlier this year works on a historic plot near Basarab overpass: the former Grivita brewery plant. The development will bring a new product on the Romanian residential market: 31 unique lofts to be built on the structure of one of the former historic buildings.

In the same development, the company will build a 6,000 sq. m co-work space, targeting Romanian entrepreneurs.

WHAT’S NEXT: Buildings with potential

Bucharest still has potential historic properties suitable for redevelopment and conversion into modern, urban, hip products.

One such place is Moara lui Assan (Assan Mill), a large property on 4.7-hectare plot, ideally placed in a central position, close to Obor metro station.

Moara lui Assan has a reach history: it was built in 1835 and was Romania’s first steam mill. The plant functioned for almost 100 years and constantly benefited from industrial upgrades due to the owner’s futuristic leadership.

In 1948, when the communist regime came in place, the factory was nationalized. After 1990, the factory came again in private property but suffered severe degradation and destruction.

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Marc Jongerius, Managing Director & Co-founder Zoku
Marc Jongerius, Managing Director & Co-founder Zoku 2490 3598 BUCHAREST REAL ESTATE CLUB

BREC Talks to Marc Jongerius

Managing Director & Co-founder Zoku

“Zoku is an entirely new product category: a home-office hybrid, suitable for long stays, with the services of a hotel and the social buzz of a thriving neighborhood.“

As new generations enter workforce market and start spending money, new, innovative real estate products are developed targeting them. Zoku Amsterdam was opened in 2016 and is a “combination between Airbnb and WeWork”, as Business Insider pointed out. The company is now developing in Europe, so BREC talked in an exclusive interview with Marc Jongerius, Managing Director & Co-founder Zoku about targeted cities and the expansion model.

What is the secret behind the success of Zoku?

The secret to our success lies in our ability to really understand the needs, wants and frustrations of our target audience. In developing Zoku, we did extensive research and found out that current offerings were often perceived as too traditional and not flexible enough for global nomads.
Where traditional hoteliers start with a floor plan, we see this as our end station. Instead, we started with a blank canvas to define how we can create more value for our guests compared to industry alternatives. We defined and tested all functional experiences that people would like to have to make their stay convenient, efficient and comfortable. After this we defined how we can increase the experience even further by offering tailor-made services, creating a social concept where people feel relaxed and well immediately, and designing a seamless integration of the on- and offline guest experience to really enrich people’s lives while living and working abroad.

Previously, none of this had been developed for the long stay segment.
Before going to the drawing board, we coined factors and ideas that would result in an attractive price point as well (leaving the frills out and creating space in less square feet). Most importantly, Zoku was a real crowd-sourcing project, where the entire concept was developed in close co-operation with our target audience, who extensively challenged us and tested all four prototypes and concept designs.
Designed in collaboration with Concrete, the award-winning interior design and architecture agency, Zoku is an entirely new product category: a home-office hybrid, suitable for long stays, with the services of a hotel and the social buzz of a thriving neighborhood. It’s a relaxed place to live, work and socialize with like-minded people while getting wired into the city.

What are your targeted cities for expansion? How do you see the potential for SEE Europe in general and Bucharest/Romania in particular?

Zoku aims to create an international community network of Zokus through an international rollout in cities that are innovative, tolerant and have a large international network.
In the next years, it is our ambition to open at least five new locations with around 750 units, focusing on European cities such as London, Berlin, Paris, Hamburg, Barcelona, Vienna Zurich or Copenhagen.
Zoku is always looking for interesting opportunities in areas that will be rapidly developing in the upcoming years. When we find an opportunity in a city that matches our pre-defined criteria, we will definitely always look into it.

What is the expansion model? Do you take financing for expanding the network or do you consider to franchise?

Zoku will keep the operation of its hotels within the company and can be realized in existing buildings as well as on new-built locations.

Zara embraces innovation and opens tech pop-up store in London
Zara embraces innovation and opens tech pop-up store in London 1326 568 BUCHAREST REAL ESTATE CLUB

Future of retail fashion: Zara embraces innovation

and opens tech pop-up store in London

The accelerating pace of innovation is changing the real estate industry and the latest move of fashion retailer, Zara, is just the proof. At the end of January, Zara launched a tech-enabled pop-up store in London, designed for click and collect purchases ahead of a new permanent flagship space.

The pop-up store which occupies 200 sq. m in Westfield Stratford City offers a small edit of men’s and women’s clothing that shoppers can purchase online while there in person. This enables delivery same day if placed before 2pm, or the next day if placed in the afternoon. The clients can also access the full catalogue of the collections to choose from online.

Staff is available to assist with mobile devices and an easy payment system operated by Bluetooth is also aiming to facilitate a new experience. Mirrors in the pop-up store have embedded information screens to offer product recommendations – by scanning an item the system suggests other garments and accessories to coordinate and style with the one the client is trying, all by his or her size.

The pop-up will be open until May while the retailer’s flagship in the same location is refurbished.

The new space will occupy alsmot 4,500 sq. m and will have a similat focus on tehchology & innovation.

In the picture – the future Zara flagship store in Westfield Stratford City.

MIPIM 2018: The most sought-after real estate assets are industrial
MIPIM 2018: The most sought-after real estate assets are industrial 4256 2832 BUCHAREST REAL ESTATE CLUB

MIPIM 2018:  The most sought-after real estate assets are industrial

Tech got mainstream as industry eyed urban future during MIPIM 2018, the world’s leading international real estate business, conference and networking event.

CBRE – Industrial in the spotlight

The annual EMEA Investor Intentions Survey, released during MIPIM by CBRE, confirmed that for European investors the most sought-after real estate assets are industrial, notably logistics. CBRE noted that is the first time industrial has overtaken office investment and the interest in logistics clearly reflects the growth in e-commerce. The report also noted that 33% of investors intend to deploy more capital in 2018 than last year, with 70% of investors actively pursuing ‘alternative’ assets.

CITIES AS ECONOMIC DRIVERS

Representatives from some 60 of the world’s largest sovereign wealth, pension, institutional and insurance company investment funds come together for the annual Re-Invest Summit. Investors acknowledged that the increasing importance of cities as economic drivers, has led them to adopt a city-by-city investment strategy compared to a country or regional approach of previous years.

CUSHMAN: ASIAN INVESTORS INCREASE PRESENCE IN EUROPE

In its annual Global Investment Atlas 2018, Cushman & Wakefield noted that Asian investors were particularly active, increasing their investment in Europe by 96% year on year. Investment from Asia Pacific to Europe hit $39.5 billion in 2017 compared to $20.9 billion heading towards the Americas. The Asian delegation at MIPIM was drawn from 15 countries.

26,000 real estate, city and political leaders, including 5,400 investors, from over 100 countries came together at this year edition of MIPIM.

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Smart retail: specialty coffee shops format drive investors’ hype
Smart retail: specialty coffee shops format drive investors’ hype 960 539 BUCHAREST REAL ESTATE CLUB

Smart retail:  specialty coffee shops format drive investors’ hype

If three to four years ago, one could have counted just a few specialty coffee shops in Bucharest, today the market has increased significantly with around 40 locations in Bucharest in central street locations and new office buildings. According to Razvan Crișan, Co-founder of m60, the market is split between two major categories: the specialty ones, independently operated, and the big chains. “In shopping malls, for the moment, it is all about convenience: fast, big and accessible, while specialty coffee shops are more about experience, quality and niched products. Outside Romania there are niched shopping malls and maybe when those type of real estate developments will appear on the local market, we will also see there some concepts focused on experience and quality”, he explains.

m60 STORY

m60 started in 2015 and opened a new area for coffee shops in Bucharest, near Amzei market, on Mendeleev street. He remembers how he trusted his intuition, despite realtors’ advice: “When we chose the location we were discouraged by experts on the market, arguing the area was inappropriate. The lesson here was that sometimes you don’t listen to the expert’s opinion and trust your entrepreneurial instinct, especially when you are a start-up”. Today the coffee shop has an average of 250-300 daily clients and an annual turnover exceeding 2 million RON (400,000 EUR). The secret? Three criteria, as Crișan explains: “we focus on quality design, with an original approach, that suits the location, we offer very good quality products, trying as much as we can to buy from local producers and we invest in creating a motivated and involved team”. The business expanded in the last two years, with a seasonal location – Spațiul m60 – functioning during the summer, near George Enescu square and a restaurant, Kane, functioning in a modern office building near Stefan cel Mare metro station.

ORIGO: COFFEE SHOP & ROASTERY BUSINESS

Another successful story, Origo was opened in 2013 by local entrepreneurs Mihai Panfil and Bogdan Nicolae, close to the old city center, on Lipscani street, in a quiet area. The place is today a successful business and serves coffee during day time, while in the evening it transforms in a cocktail bar. Due to a very appreciated product, the coffee from Origo can be served in other locations such as French Revolution éclair shop in Piata Victoriei and Cooperativa FruFru – a restaurant with four units opened: in Universitate and Amzei market and in America House and Eurotower office buildings. The same coffee from Origo roastery can be found in Steam, a smaller coffee shop concept, with two units opened near Romana and Aviatorilor Sq.

BIGGER INVESTORS COME IN

As the specialty coffee gains ground and more and more clients are looking for this type of product and places to experience it, the business is in the attention of bigger investors that want to develop specialty coffee chains. The founders of Salad Box and Marty Restaurants announced last year investment plans of 500,000 EUR to develop Narcofee Roasters, with 15 locations in Bucharest and Cluj by the end of 2018. The company has opened three locations in Cluj and one in Bucharest, in AFI Cotroceni.

TED’S COFFEE – THE INTEGRATED EXPANSION STRATEGY

Ted’s Coffee, the specialty coffee chain owned by Romanian entrepreneur, Vasi Andreica, has adopted an integrated expansion strategy and today has 35 units in Bucharest, Sibiu and Ploieşti, planing to add Braşov to the list. The expansion strategy for this brand included: street locations, shopping centers, office buildings and “shop in shop” locations.

BREWTIFUL – THE “RETAIL IN RETAIL” FRANCHISE

Brewtiful Café is the first “retail in retail” franchise specialty coffee concept in Romania, developed by Ţiboc family, which also owns IT retailer QuickMobile and luxury perfumery, SOLE. The espresso bar can function on a surface of 4-5 sq.m and is present in five QuickMobile and SOLE shops from Bucharest, Timişoara, Constanţa and Baia Mare and two Cărtureşti book stores from Bucharest. The owner has invested 350,000 EUR and in one year plans to reach 30 locations in all major cities from Romania.

In the context of a rapidly emerging Romanian real estate industry, with new office hubs opening as well as new retail formats, the local market of specialty coffee shops enters a new development phase.

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Răzvan Crișan – Co-founder of m60
Răzvan Crișan – Co-founder of m60 1417 1417 BUCHAREST REAL ESTATE CLUB

BREC Talks to Răzvan Crișan

Co-founder of m60

“There is potential for specialty coffee shops in niched shopping malls.“

A smart coffee shop concept is an “anchor” for a successful office building: a benefit for tenants and a landmark for the building, attracting new clientele in the place. With new office hubs and retail formats developing, we sat down with Răzvan Crișan, Co-founder of m60 and talked about the specialty coffee market development and opportunities.

The market has expanded significantly in the last two years especially in the downtown area. Do you see potential for such coffee shops in a mall, as an alternative for the offer of the big chains- Starbucks, Gloria Jeans etc?

The coffee shop market is to be divided in two major categories: the specialty ones, independently operated, and the big chains. In shopping malls, for the moment, it is all about convenience: fast, big and accessible, while specialty coffee shops are more about experience, quality and niched products.

It’s hard to imagine a specialty coffee shop in a mall, while they focus on fast, big and accessible. Outside Romania there are niched shopping malls and maybe when those type of real estate developments will appear on the local market, we will also see there some concepts focused on experience and quality.

What are your estimations regarding the annual value of the specialty coffee shops’ market?

Theoretically, there are around 40 places in Bucharest, called as ‘specialty coffee shops’, but I believe that only 10-15 are preoccupied to do a truly good job. And when I say a good job, I am referring to investments in equipment, working with good beans and most of all the investment in the staff to offer a nice experience for the clients. At M60 we decided to serve along specialty coffee, simple but delicious food. If you do your job honestly, with a coffee shop like m60 you can reach an annual turnover of over 2 million RON, like us, in the third year.

What were the key elements in the success of m60? How many daily customers does the coffee shop have?

We started in 2015 and we have succeeded to double our business. Regarding the clients’ daily average, we have increased significantly, at a level of 250-300 persons. We have three criteria which we try to implement every time we invest in a new location: we focus on quality design, with an original approach, that suits the location, we offer very good quality products, trying as much as we can to buy from local producers and we invest in creating a motivated and involved team. Interestingly, when we chose the location from Mendeleev street we were discouraged by real estate experts on the market, arguing the area was inappropriate. The lesson here was that sometimes you don’t listen to the expert’s opinion and trust your entrepreneurial instinct, especially when you are a start-up.

1 BLN EUR investments in large scale projects, in bucharest north metropolitan hub
1 BLN EUR investments in large scale projects, in bucharest north metropolitan hub 1280 960 BUCHAREST REAL ESTATE CLUB

1 BLN EUR Investments in large scale projects,

in Bucharest North Metropolitan hub

After it seemed that Barbu Vacarescu – Pipera area has reached its potential and developers focused on other locations in Bucharest, the district is now entering a new development phase, transforming in a North Metropolitan hub of Bucharest, according to an analysis by BUCHAREST REAL ESTATE CLUB.

See more: PROTV, Forbes, Digi24

INFOGRAPHIC DOWNLOAD

New estimated investments of more than EUR 1 BILLION in office, retail, residential & hotel schemes, together with a public hospital bring new opportunities on the Bucharest real estate market.

GLOBALWORTH

Globalworth has recently announced it has acquired for 16 million EUR two plots of lands from Italian Nusco family, neighboring its projects Globalworth Plaza & Green Court. It plans to build here two new state of the art office schemes featuring unconventional lobby, green roof and co-work spaces. The company is also building in the area Globalworth Campus, a premium 88,000 sq. m business park, comprising of three office towers, that is to be entirely finalized in 2018. One of the biggest companies worldwide, Amazon, leased here 13,500 sq. m for its new Bucharest center.

NEPI ROCKCASTLE

NEPI Rockcastle is expected to begin works at the expansion of Promenada Mall, a mixed project of 60,000 sq. m of retail and office spaces. According to a company public report, the new development has benefited of 33 million EUR investments up to the end of 2017, the total costs reaching 166 million EUR, with a targeted opening date for Q2 2020.

SKANSKA

Skanska has already begun construction at Equilibrum office project at the junction of Gara Herastrau & Dimitrie Pompeiu streets. The first building will comprise of 20,800 sq. m and has an estimated delivery time in Q2 2019. Upon completion, the entire two-building complex will offer 40,700 sq. m GLA. The Swedish-based real estate developer announced investments of 37 million EUR in the first phase of the project.

ONE UNITED

One United Properties, the developer known for its premium-residential projects, has formed a new office division and bought in this area North Gate, where Renault renewed its 20,000 sq. m lease. The market value of the building is 28 million EUR.

APEX ALLIANCE

The area is also attracting the attention of hotel investors. Lithuanian- based Apex Alliance which owns in Bucharest Europa Royale and Hilton Garden Inn is building on Dimitrie Pompeiu boulevard a new four-star hotel affiliated to Courtyard Marriott chain. The new hotel that is to be delivered on the market in 2019, will have 259 rooms, 119 parking units, a bar, a restaurant, meeting rooms and a much-awaited conference center (approx. 535 sqm) in a busy office area of Bucharest.

THE METROPOLITAN HOSPITAL

A public project, The Metropolitan Hospital to be built on the former public transportation base (RATB), was recently approved by the General Council of Bucharest Municipality. The new medical unit will have 1,500 beds and requires an investment of 300 million EUR.

THE RESIDENTIAL SECTOR

The residential sector is also improving its offer, with projects exceeding 5,000 apartments in the area. Local entrepreneur Petre Niculae has bought a 20,000-hectare plot neighboring the future Metropolitan Hospital, where it plans to build a 40,000 sq. m project, totaling around 600 apartments. Close by, Mohammad Murad is building Onix Park – a residential compound of 2,000 apartments. Recently, a new large-scale development was announced: Israeli-based Hagag is to start construction for a 90 million EUR project, totaling 1,350 apartments. One of the most experienced Romanian residential developer, Impact, is also interested in the area and is on the process to buy a 55,000 sq.m plot from Nusco family. Another large residential scheme under development here is Belvedere Residences with 1,500 apartments.

High profile institutional investors as well as local and international players have made significant acquisitions in the past 2 years in this area: Growthpoint and EBRD have entered the shareholding of Globalworth with a 26.9% and a respective 4% stake in 2017, Israeli billionaire Teddy Sagi has bought Swan Business Park for EUR 30 mln, while One United acquired North Gate, a building with a market estimated value EUR 28 mln. The area has the biggest density of AAA tenants in Bucharest, with examples including Huawei, Oracle, Orange, Raiffeisen Bank, Renault or Vodafone.

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Marian Popa – Director of DB Global Technology in Bucharest
Marian Popa – Director of DB Global Technology in Bucharest 560 480 BUCHAREST REAL ESTATE CLUB

BREC Talks to Marian Popa

Director of DB Global Technology in Bucharest

``Romanian Real Estate market starts to enter a pre-maturity phase and I sense the need of its transformation in a supplier for habitat services. I am referring here to complete relocation services: from temporary apartments offers, shared-car services, catering, conferences facilities, etc. The transformation of this industry from a < hard > predilect area to a < soft > one will determine a qualitative increase of used spaces, in the benefit of both parties.``

The technology center of Deutsche Bank is operational since 2014 in BOB office building from UpGround and employs 500 IT & C specialists . The center develops top software solutions for the banks’ global operations and represents a platform for highly skilled engineers. BUCHAREST REAL ESTATE CLUB exchanged views with Marian Popa, Director of DB Global Technology in Bucharest about the future of workspace and expectations related to the services on the local real estate market.

What is the impact of Real Estate in the attraction, retention and motivation of your employees?

The impact of a modern workspace can be interpreted in two ways: the first one, which is usually described as <<Wow!>> or <<Cool>!> and the long term impact which involves several elements such as: the ease of the workflow, the flexibility of the workspaces’ facilities, the logic of the furniture in the production flow or chromatics as an long term effect, just to name a few.

This is why we don’t just implement a fit-out process, we build it on long term periods of up to a year, during which we involve our colleagues, the future users of the space. We choose this solution because we do not consider the real estate component as just a roof under which we activate, but as an essential element of the collaboration between DB Global Technology has with its employees.

How do you use the office premises as a differentiating factor on a very competitive workforce market?

A competitive workforce market generates quality, and this has positive effects as competition is the most severe arbitrator. We try to perceive our workspace as a partner – I think this is the principal differentiating factor. A partner which helps you to perform, which generates good mood and stimulates the creativity of the occupants. And, as it mainly is a problem of human interaction, the project manager was the HR Department. The achieved results prove that it has been a successful project, which we are about to multiplicate.

How do you see the future of work-space?

The workspace of the future is directly related to the development of technology. The more freedom technology offers us, the more virtual the workspace will become. The “working anywhere” concept will evolve and will be the future trend, while holograms, future networks of 6-7-10G, augmented multi-tasking will allow us in the future to consider the office anywhere.

What are your expectations when discussing with representatives of the local real estate market? What type of services would you expect to be delivered?

Romanian real estate market starts to enter a pre-maturity phase and I sense the need of its transformation in a supplier for habitat services. I am referring here to complete relocation services: from temporary apartments offers, shared-car services (the road from home to office is constantly done for 22 days per month), catering, conferences facilities, etc. The transformation of this industry from a predilect “hard” area to a “soft” area will determine a qualitative increase of used spaces, in the benefit of both parties.

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