In the Spotlight

In the Spotlight

IMPACT announces revenues of 169.5 million RON in 2023 and a net profit of 34.9 million RON
IMPACT announces revenues of 169.5 million RON in 2023 and a net profit of 34.9 million RON 1200 553 BUCHAREST REAL ESTATE CLUB

29.02.2024

Impact Developer & Contractor

IMPACT Developer & Contractor S.A. (ticker symbol IMP), the first real estate developer listed on the Bucharest Stock Exchange, ends 2023 with a preliminary consolidated turnover of 169.5 million RON, a net profit of 34.9 million RON and a gross margin of 39%.

In 2023, the company signed sale-purchase contracts for 157 units in the GREENFIELD Baneasa, LUXURIA Residence and BOREAL Plus compounds, which, together with related parking spaces, gardens and storage rooms, generated revenues of 119.5 million RON.

IMPACT owns a valuable land portfolio in Bucharest, Constanta and Iasi, of about 71 ha, with development potential for 5 more new sustainable, large-scale projects, with an estimated market value of over 7.4 billion RON.

At the end of the year, the developer had 377 pre-sold and reserved housing units, of which 320 for the new apartments in GREENFIELD Baneasa, to be delivered this year.

IMPACT Group’s gross margin increased from 32% to 39% in 2023. Indebtedness held steady at 28%, while trade debt fell by 26%. At the same time, the company maintained its stable liquidity position, at 51.3 million RON.

“The low volume of mortgage loans, as a result of the major increase in interest rates, together with the postponement of the approval procedures for the reception of new apartments in GREENFIELD Baneasa, had a significant impact on the company’s revenues, which are recorded only after receiving the amounts from the sale-purchase contracts. After a year dominated by high inflation and unpredictability, 2024 comes with good prospects: the delivery of 732 apartments in GREENFIELD Baneasa and the continuation of construction works at another 435 units in the neighborhood, the liquidation of the stock of units in LUXURIA Residence, for which an increased interest was maintained, as well as the planning of the GREENFIELD Copou (Iasi) and ARIA Verdi (Bucharest) projects.”, stated Constantin Sebesanu, CEO IMPACT Developer & Contractor.

As of December 31, 2023, IMPACT had construction permits for 2,693 units in Bucharest, Iasi and Constanta, with an estimated market value of 1.9 billion RON. Of these, 982 homes are in various stages of construction.

HILS Development launches HILS Titanium, an investment of 70 million EUR
HILS Development launches HILS Titanium, an investment of 70 million EUR 938 600 BUCHAREST REAL ESTATE CLUB

28.02.2024

HILS Titanium

HILS Development launches HILS Titanium, the sixth large residential project in the Eastern part of the Capital. The new project will consist of 7 buildings with 1,194 apartments and 1,217 parking spaces located both on the ground and underground. The types of apartments available in the project range from studios, and apartments with 2 and 3 rooms to duplexes.

HILS Titanium is located about 500m from the Nicolae Teclu metro station, with close schools, educational centers, and the Pallady shopping area that includes IKEA stores, Leroy Merlin, Kaufland, Lidl, Metro, Metro, Auchan, Jumbo and XXXL Lutz.

“I am glad to announce the launch of the newest project – HILS Titanium, the sixth residential project developed by HILS Development. So far, the six projects launched have created a community of over 25,000 residents. According to our development strategy, we continue to complete over 1000 apartments annually, with the same mission to provide access to quality living for as many inhabitants as possible.” said Ionut Negoita, founder and CEO of HILS Development.

In June 2023, the developer marked an important milestone, surpassing the milestone of 10,000 homes built and sold, with the completed projects HILS Pallady – 1,908 apartments, HILS Brauner – 1,336 apartments and HILS Splai – 111 apartments, to which are added the projects under construction HILS Republic with 370 apartments in Phase 2 of a total of 5,000 housing of the entire project, HILS Sunrise with 704 apartments and, most recently launched, HILS Titanium with 1,194 apartments. In 2024, HILS Development is in the process of designing and authorizing about 5,000 other homes.

Investments intend for Bucharest drops by more than 50%, to 500 million EUR
Investments intend for Bucharest drops by more than 50%, to 500 million EUR 901 600 BUCHAREST REAL ESTATE CLUB

15.02.2024

THE TRENDS FORUM 2024

Bucharest Real Estate Club surveyed the most dynamic investors for the forces that shape the city skyline in 2024. Urban freeze, along with the unpredictability show their effects: investments intend for Bucharest drops by more than 50% from 2023, BREC members indicating a volume between 400 – 500 million EUR for 2024.

On a scale of 1-5, the community expresses a moderate take on the economic perspectives of the Bucharest real estate landscape in the new year, with a 3.06 average, down from 3.6 in our 2023 survey, and a median of 3. The most interesting change by comparison to 2023 is that the development strategy and refurbishment of existing assets overtake new acquisitions.

Through the survey, the recurring theme is still the urban planning freeze. Most of our respondents circle back to the topic when estimating their investment pipeline. The urban planning uncertainty has also an impact quality-wise, as the responsible developers, who are building large-scale projects and have high-quality standards, are slowly but surely driven away from the market. Due to limited supply, there is an estimation of 10% in asking prices and rents.

The fiscal changes, including the increase of VAT for residential purchases and the termination of industry incentives for construction labour tax, along with high-interest rates, impact negatively the accessibility of credit and housing. However, the biggest contributor to investor sentiment towards the Bucharest real estate market is the urbanistic uncertainty.

The attractiveness of asset classes changed by comparison to 2023. Industrial & logistics still tops the charts, closely followed by residential, a segment lower ranked 12 months ago. Offices lost further ground. However, hotels are the least preferred in 2024. In 2023 this asset type was slightly higher in the top, which is surprising considering the increase in the number of visitors.

Despina Ponomarenco, President of BREC: “If Romania continues infrastructure investments and in the context of Schengen accession, we are facing an accelerated development outlook. The national GDP is estimated at 310 billion $ for 2024 and 323 billion $ for 2025. The country has a gross debt of 52.7% of the GDP, well below the EU average of 83%.The GDP of Bucharest only exceeds the GDP of countries such as Croatia or Bulgaria. In this respect, we hope that 2024 will bring improvement perspectives for the relation between real estate investors and the representatives of local authorities for the responsible development of Romania’s Capital City“.

Redport Capital announces over 100 million lei turnover in 2023
Redport Capital announces over 100 million lei turnover in 2023 1020 600 BUCHAREST REAL ESTATE CLUB

1.02.2024

Infinity Nord

Redport Group, founded in 2016 by Cosmin Savu-Cristescu, announces a turnover of over 100 million lei for the year 2023. Over the past few years, the company has secured a land portfolio of over six hectares in the Petrom City – Străulești – Dămăroaia area.

Within the projects The Level Apartments and Infinity Nord, Redport Capital will develop over 2,000 apartments and 15,000 sqm of commercial spaces. The total gross development volume exceeds 350 million Euros.

During 2023, Redport Capital fully delivered and sold Phase II of The Level Apartments project and traded over 200 units across all the group’s projects, thereby contributing to a consolidated turnover of over 100 million Lei.

The reported results can be credited to a balanced and efficient mix between a quality product at a fair price and the strategic choice of the Străulești area, which is already emerging as the New North of Bucharest and one of the main hubs for sustainable development in the capital, providing an innovative and modern environment for future homeowners.

“We are pleased to announce the achievement of our financial objectives for 2023, showcasing  our commitment to quality and excellence in all aspects of our business. The Level Apartments project has been a remarkable success, marking a significant milestone in the evolution of Redport Capital, and the launch of Infinity Nord will be both a natural extension of our portfolio and a testimony to our long-term vision for sustainable urban development”,  Cosmin Savu-Cristescu, Managing Director of Redport Capital said.

Fortim announces key tenants extend leases at America House
Fortim announces key tenants extend leases at America House 900 600 BUCHAREST REAL ESTATE CLUB

23.01.2024

Fortim Trusted Advisors announces the extension of lease contracts with three tenants at America House: Mastercard, PAID, and an IT&C company, a total of 2,000 sqm.

Mastercard has chosen to continue its operations at America House, serving as the company’s headquarters in Romania for over 15 years. The decision to renew the lease is attributed to the central location, easy access to transportation, ample facilities including parking, and workspaces that align with their functional and design requirements, according to Cosmin Vladimirescu, General Manager of Mastercard Romania and Croatia. PAID, an active tenant for the past 5 years, expresses enthusiasm in extending its lease, citing America House as a vital hub for its success.

America House, a landmark Class A office building in the heart of Bucharest’s CBD, boasts 28,806 sqm of prime office and retail spaces. Recent refurbishments totaling 10 million euros have further enhanced the building’s appeal. Notable tenants include the Embassy of Japan, Mastercard, Cisco, Intesa Sanpaolo Bank, and others.

The building prioritizes employee well-being, offering a newly refurbished World Class gym, bike rooms, and electric car charging stations. America House holds two international certificates, BREEAM in Use Outstanding and Gold ActiveScore, with a perfect rating in Health and Wellbeing.

New opportunities for the real estate market in Romania
New opportunities for the real estate market in Romania 900 600 BUCHAREST REAL ESTATE CLUB

5.12.2023

Bucharest Real Estate Club in partnership with the Bucharest Stock Exchange and the Budget & Finance Committee from the Chamber of Deputies organized today at the Palace of the Parliament, the round table on the regulation of REITs (Real Estate Investment Trusts).

REITs are investment vehicles which facilitate the access of individuals and legal entities to a diversified portfolio of real estate properties. Through these entities, investors can access and invest in real estate in a simplified and efficient manner. An important aspect of REITs is that they are listed companies on a regulated exchange, which ensures transparency, liquidity, and proper oversight for investors.

“The Romanian real estate market has faced many challenges in recent years: the restrictions due to the COVID pandemic, inflation, the war near the border, the lack of predictability and, particularly for Bucharest, the urban blockage. Under these conditions, the regulation of this instrument would attract new investors, which are not present on the market”, Despina Ponomarenco, BREC President said.

The debate was attended by Alfred Simonis, Interim President of the Chamber of Deputies; Florin Spătaru, State Counsellor within the Prime Minister’s Chancellery; members of the Budget & Finance Committee from the Chamber of Deputies; Adrian Zuckerman, former ambassador of USA in Romania; Adrian Tanase, CFA, CEO of the Bucharest Stock Exchange; Dan Manolescu, President of the Chamber of Fiscal Consultants; representatives of the Financial Supervisory Authority; representatives of pension funds, as well as representatives of BREC member companies: Tinu Sebesanu – IMPACT Developer & Contractor; Marius Persenea – IULIUS; Bogdan Gubandru – Redport Capital; Alexandru Bonea and Antoanela Virginia Comsa – Meta Estate Trust; Laura Dumea-Bencze – CBRE Romania; Costin Nistor – FORTIM Trusted Advisors; Alliance Member of BNP Paribas Real Estate; Tudor Iuga – Simon, Iuga & Partners; Real Estate Advisors; Roxana Roman (Dudau) – Wolf Theiss; Mihaela Ispas and Ioana Grigoriu – Filip & Company.

The regulation of REIT- type instruments was included in the OECD recommendations regarding the capital market in Romania, in the report issued by the organization in 2022. Currently, all G-7 nations and almost two thirds of the OECD countries have institutionalized these entities.

For the event gallery, click here: https://brec.ro/events/reit-reglementation-debate-at-the-romanian-parliament-december-2023/

Who are the big winners of REmarkable AWARDS?
Who are the big winners of REmarkable AWARDS? 900 600 BUCHAREST REAL ESTATE CLUB

15.11.2023

Fantastic evening yesterday at CEC Palace where we revealed the winners of the first edition of REmarkable Awards!

A select number of leaders from real estate investment funds, developers, architects, and designers gathered last night in the exquisite ambiance of CEC Palace, an emblematic building of Bucharest with a history of more than 100 years. The event, shaped with the contribution of Elite Partners One United Properties SA, CEC Bank; Premium Partner Akcent Development and Associate Partner THETA Furniture & More, was presented by Marius George Pancu.

The winners were selected following the results of the International Judging Board of Architects and Public Vote.

Bucharest winners:
? Small offices, 350-500 sqm: Genesis Property – Bookster office from Yunity Park
? Medium offices, 500-1,500 sqm: AMA Design – CMS office from One Tower
?Large offices, over 1,500 sqm: Lemon Interior Design – Superbet office from One Cotroceni Park
?Co-working & community spaces: BL ASSOCIATES – Banca Transilvania STUP
?General retail: TEILOR – AFI Cotroceni
?HORECA retail: Twins Studio – Biutiful terrace – Timpuri Noi Square
?Medium & upper medium residential: Delta Studio – Parcului 20 by Cordia Group
?Premium & High End residential: Lemon Interior Design – One Mircea Eliade
?Jury Award: FORTIM Trusted Advisors, Alliance Member of BNP Paribas Real Estate & Add Value Management – America House.
?Organizers Award: RPHI – Raiffeisen Property Holding International Holding International – Sky Hub events center, SkyTower Bucharest.

For the picture gallery of the event, click here.

For 2024 submissions entry, click here.

Deliveries of new homes decrease in Bucharest versus Ilfov
Deliveries of new homes decrease in Bucharest versus Ilfov 899 600 BUCHAREST REAL ESTATE CLUB

17.10.2023

The administrative deadlock and the uncertainty of the urban climate deepen the losses for Bucharest’s economy on multiple levels: the decrease in the number of homes delivered in Bucharest, versus Ilfov, as well as the taxes collected by the authorities.

The data from the National Institute of Statistics show a decrease in the share of the number of homes delivered in Bucharest to the detriment of those delivered in Ilfov. Thus, from 66.5% in 2020, it decreased consecutively to 60.60% in 2021, reaching 57.40% in 2022, while the share of Ilfov County increased.

FINALIZED RESIDENTIAL UNITS BUCHAREST & ILFOV, 2020-2022. SOURCE: INS

YEARNUMBER OF NEWLY DELIVERED RESI UNITSBUCHARESTILFOV
202020,78366.50%33.50%
202122,01060.60%39.40%
202221,32857.40%42.60%

“The urban gridlock has clear effects regarding the accessibility of new homes in Bucharest. The share of deliveries from neighboring areas increases, this fact having a direct impact on the increase in traffic values and pollution in the Capital, where people come to work, to bring their children to school or for social activities”, says Despina Ponomarenco, President of BREC.

According to the financial statements submitted to ANAF (by companies active in the construction and real estate industry) as well as the INS statistics consulted by BREC analysts, Bucharest’s contribution to the national GDP decreased from 37% in 2019 to 34.6% in 2021 and up to 29.8% in 2022, a level similar to that of 2010, at the height of the financial crisis. The estimated loss for tax revenues is 3.45 billion Euros for the period 2022-2026, while the loss of added value in the economy for the same period is 10.4 billion Euros.

“In the context of the increasing strategic importance of the CEE area, Bucharest is losing major investments due to the uncertainty and lack of predictability in terms of urban regulation. The capital of Romania is in competition with other capitals in the CEE area, not with secondary cities in the country, so the losses are for the Romanian economy”, explains Despina Ponomarenco, President of BREC.

The Bucharest Real Estate Club Association (BREC), which represents the entire real estate industry – large developers, construction companies, architecture, project management, consulting, or real estate law – remains open to dialogue with the authorities to identify the best solutions so that Bucharest to return to a normal framework.

Nearshoring becomes a reality: production increases in logistics & industrial activity
Nearshoring becomes a reality: production increases in logistics & industrial activity 900 600 BUCHAREST REAL ESTATE CLUB

16.10.2023

Bucharest is slowing its logistics development activity, with a share of 27% of the 233,000 sqm delivered in the first half of the year, while 73% goes to regional centers, as shown by CBRE Romania data presented at the OMNICHANNEL CONFERENCE recently organized by BREC & PRC.

“A total of 560,400 sqm were traded in the first half of the year, of which 2% were warehousing, 55% logistics, 21% manufacturing and 22% other activities. “The share of production activity in total rental transactions increased from 9% in the first half of 2022 to 21% in the same period of the current year. In addition, the logistics segment stagnated, while warehousing and other I&L segments declined. Nearshoring is here and you can see it in the numbers,” explained Daniel Cateliu, Director, Industrial & Logistics, CBRE Romania.

“This year we noticed the trend of compliance with fire prevention rules and, consequently, the increase in demand from tenants who were operating in old and non-compliant premises. By the end of the year, we will have a 0% vacancy rate on all VGP stock in Romania”, explained Dana Bordei, Commercial Country Manager, VGP Romania. The Belgian investor has a new project in the works in the A2 area. “We see a lot of potential in the A2 area, in terms of traffic but also for the labor pool in the area”, explained Dana Bordei.

During the pandemic, the e-commerce sector experienced accelerated growth, which moderated. “We expect the e-commerce market to reach the level of 7 billion Euros this year, but everything depends on Black Friday, the most important annual event in this sector. We expect the longest Black Friday this year, with promotions that will last two weeks”, explained Raluca Radu, Country Manager, Answear, adding: “In Romania, the e-commerce market represents 10% of the total trade, while in Poland the share is 20% and in the UK 30%. The growth potential is still there.”

Globalworth’s logistics portfolio has exceeded 400,000 sqm. “In June 2023, Globalworth’s industrial portfolio had an occupancy rate of over 90%, given that, in the last 18 months, we delivered 123,000 sqm. Banks are open to financing sustainable and energy-efficient projects,” said Oana Cojocaru, Sustainability Director at Globalworth.

“At Buftea we have already developed 120,000 sqm, of which 50,000 sqm were sold to Fortress. Our strategy is to continue the development of the hub and we are confident that by completing the works on the new A0 belt of Bucharest, the weight of the logistics poles in the capital area will change substantially”, explained Andrei Jerca, Managing Director, ELI Parks, adding: “Outside of Bucharest last year we started the first construction site in Ploiesti and this year we are continuing the second one. Our development direction is also heading towards the Moldova area, also encouraged by the improvement of the infrastructure, where we already have two projects in execution in Bacău with a total area of 45,000 sqm, and our strategy provides to open another new city”.

The managers present at the conference mentioned that in order to attract greater investments in production capacities, in addition to completing major infrastructure projects, Romania needs massive investments in increasing the capacity of utility networks (electricity, gas).

Another trend discussed at the conference is the need for new mixed-use real estate products that combine retail parks and last-mile logistics developments.

2023 will mark a new record in terms of new supply of retail premises
2023 will mark a new record in terms of new supply of retail premises 923 600 BUCHAREST REAL ESTATE CLUB

12.10.2023

The retail market is heading for a new record year in terms of retail space deliveries, with performances over 2022 for both shopping centres and retail parks, show the conclusions of the “OMNICHANNEL CONFERENCE – The Era of Responsible Development” event organized yesterday by Bucharest Real Estate Club and Romania Property Club.

“70,000 sqm of retail space were delivered in the first three quarters of this year, with 230,000 sqm scheduled for delivery by the end of the year. For this new stock, shopping centres have a dominant share of 60%, with the remaining 40% being retail parks,” said Dana Radoveneanu, Head of Retail, Cushman & Wakefield Echinox. It mentioned that another 400,000 sqm are in various phases of development, with expected delivery by 2025.

For Bucharest, the main projects under development are the expansion of the Promenada mall and the IMGB Value Center. The largest project under construction in the country is Prima Shops Sibiu by Oasis, other cities that attract retail investment being Cluj-Napoca (the new Iulius project), Brașov, Iași, Sibiu, Arad, Pitesti and Bacău.

“The food segment experienced the biggest transformation after the pandemic years. From our data we see increases of up to 50% in the food court area in 2023 compared to 2019. Flows have changed, delivery people have appeared and we are also analysing the opportunity to have dedicated delivery areas in the new projects we are developing ”, said Sebastian Mahu, Head of Asset Management, Iulius during the event.

“Internationally, the trend is towards immersive experiences where art merges with technology, attracting both children and adults. Such a concept was opened in the Northern area of Bucharest”, said Dana Radoveanuanu regarding the new entertainment concepts that are making their way on the local market.

Cătălin Pozdarie, General Manager, Hervis pointed out the change in consumer behaviour. “After people faced the reality of death during the pandemic years, they spent more on vacations and this fact is affecting retailers in the middle consumer area, as is Hervis. The Romanian market has become extremely competitive, combined with inflationary pressure, which leads to a difficult environment. We’ll see who survives and who doesn’t.”

16 new brands entered the Romanian market between 2002 and 2023: Primark, Half Price, Modivo, Lefties, InStreet, Wittchen, Crocs, Jimmy Key, Popeyes, Poke House, Submarine, Bath & Body Works, Tedi, Fressnapf and Pikito . With 16 entries, Romania ranks second in the CEE area after the Czech Republic – 38, ahead of Poland – 13, Slovakia – 8, Bulgaria – 6 and Hungary – 5, according to Cushman & Wakefield Echinox data.

In addition to the inaugurations in Romania, Bulgaria, the Czech Republic, Poland and Hungary, Teilor announced a new concept at the BREC conference. “We are working on a new “DAR” concept aimed at generation Z, next year we will open two stores”, explained Lilian Furtună, Global Expansion Director, Teilor. The company has reached a number of 70 stores, of which 53 are in Romania.

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