In the Spotlight

COVID 19 pandemic has changed the way we work and revealed the fragility of the employees` mental health, especially for those engaged in remote work formats, according to assessments carried on since the pandemic outbreak by EUROFIN, a market leader in Health & Safety in Romania. Fear, anxiety, other strong emotions about the pandemic and all related changes can be overwhelming and lead to burnout – and the percentage is increasing, specialists warn.

According to Razvan Chiru, Managing Partner of EUROFIN, employees’ burnout decreases productivity, it is the biggest threat to workforce retention, leads to decreasing employee engagement and has a negative health impact over the entire workforce.

And burnout has become a global phenomenon:

• To prevent burnout, LinkedIn just gave its entire company a week off. More than 15.000 employees worldwide got a paid week off starting April 5.
• We Have All Hit a Wall” writes New York Times early April. Read more >>
• “Malaise, burnout, depression and stress — all of those are up considerably,” said Todd Katz, executive vice president and head of group benefits at MetLife. The company’s most recent Employee Benefit Trends Study, conducted in December and January, found that workers across the board felt markedly worse than they did last April.
• 80% of USA employees report symptoms of burnout during COVID-19 pandemic. From February to September 2020, during the coronavirus disease 2019 (COVID-19) pandemic, 83% of employees in the United States working in 17 industries reported feeling emotionally drained from their work—a key symptom of burnout. According to a survey of more than 5,000 employees, of those who reported emotional exhaustion from their work, 71% strongly agreed that their workplace affects their mental health.

Preventive workplace mental health measures can make the difference

EUROFIN specialists reinforce the role of managers dealing with team members’ health issues. They recommend leaders and managers to open the door for employees to feel comfortable talking about these problems and build a culture of connection because with so many people working from home it can be harder to notice the signs of burnout or other mental health concerns.

They need to offer flexibility and to communicate more, as well as they need to invest in proactive and preventive workplace mental health trainings or change policies and practices to reduce stress on everyone.

During Covid-19 pandemic, 20% of the Romanians have reported high stress and 48% of them reported high fear. 40% of the Romanian employees report their emotional wellbeing has been strongly impacted by the pandemic (*undelucram.ro survey).

(15.04.2021)

River Development  leased an area of 1,000 square meters in one of its buildings in Sema Parc to MAISON MORIES, the operator of artisanal bakeries “Pain Plaisir”, for production.

“Sema Parc is a generous space, adaptable to all businesses, whether we are talking about top companies operating in class A buildings, or we are talking about small production companies, logistics, or smaller activities, which have different needs. We are actively open to the business community and we are glad that the founders of Pain Plaisir have chosen Sema Parc for their newest production space. We hope that, in a short time, we will be able to host them a new bakery-store. ” – said Tina Virlan, Leasing Manager at River Development.

The rented space has an area of 1,000 square meters and is located in one of the existing buildings in Sema Parc, which have recently undergone a process of rehabilitation and modernization. 

“We have chosen to expand our business in Sema Parc with a new production space, for excellent positioning and for the facilities of the community developed here. Our strategy, which currently focuses only on Bucharest, is to open stores “close to home”, because artisanal bread must be eaten fresh and bought almost daily, in the absence of preservation and loosening agents. Sema Parc has given us the ingredient of a community in which we can grow, as we wish, in the coming years. ” – said Irina Stancescu, Co-Founder of Pain Plaisir.

River Development is a real estate developer with Romanian capital, with activity for over 15 years on the local market, supported by a team of professionals with extensive experience in planning, developing and managing large real estate projects. River Development develops the real estate projects Sema Parc (located on Splaiul Independentei – approx. 1,000,000 sqm GBA) and The Light (located on Iuliu Maniu Boulevard, approx. 150,000 sqm GBA), both located in the central-western area of the capital and in different stages of development.

River Development has over 150,000 sq m of office space in its portfolio and has delivered in the last two years over 38,000 square meters of new class A buildings, within the Sema Parc project, through the three class A buildings – Brussels, Paris and Berlin. London and Oslo buildings with delivery in Q4 2021 will add another 31,500 sqm (GLA) of class A offices within the Sema Parc project.

As part of its second portfolio project – The Light, River Development has already delivered the first phase – The Light One, a Class A office building with a leasable area of 21,653 sqm.

All recently developed or under construction projects comply with BREEAM standards for green buildings and target for the “Outstanding” rating. 

(8.04.2021)

GTC, one of the leading developers and asset managers in CEE, has announced the promotion of Ziv Gigi to the position of Managing Director Romania. He will be responsible for all operations of GTC in the Romanian market.

Ziv Gigi has more than 15 years of experience in Central and Eastern European real estate markets, developing and operating dozens of projects in office and Retail space. Ziv`s expertise covers the spectrum of a real estate development, sales and acquisitions. His previous tenure as the CFO of GTC’s operations in Bulgaria, Romania and Serbia provided him with all the financial acumen needed to successfully execute and support the company’s strategic direction, GTC states.

“I’m excited for this new opportunity with GTC. Romania is a dynamic and promising strategic location for the company’s development and growth. My deep knowledge of real estate sector and years of experience in this market will support GTC in realizing brand-new projects and implementing operational excellence” Ziv Gigi, Managing Director of GTC in Romania, comments.

The GTC Group is a leading real estate investor and developer focusing on Poland and capital cities in Central and Eastern Europe. Since 1994 GTC has developed 76 high standard, modern office and retail properties with a total area of over 1.3 million sq. m through Central and Eastern Europe.

GTC now actively manages a commercial real estate portfolio of 48 commercial buildings providing over 750 ths. sqm of lettable office and retail space in Poland, Budapest, Bucharest, Belgrade, Zagreb and Sofia. In addition, GTC has a development pipeline of 325 ths. sqm of retail and office properties in capital cities of Central and Eastern Europe, 37 ths. sqm under construction. GTC S.A. is listed on the Warsaw Stock Exchange and it is included in the mWIG40 index and inward listed on the Johannesburg Stock Exchange.

(7.04.2021)

• Acquisition of the Bucharest Financial Plaza in the heart of Bucharest is valued at approximately EUR 36 million
• Planned renovation of the property into a high-quality and green myhive building with a sustainability certification of at least Gold

Modern re-design of public area and planted city terrace create immediate value for the city and its residents IMMOFINANZ has acquired the Bucharest Financial Plaza office building, in a prime central location close to the historic center of Bucharest.
The property is being sold by Banca Comercială Română (BCR), the largest financial services group in Romania and a subsidiary of the Austrian Erste Group Bank. The building, with gross rentable space of around 27,700 sqm (post-conversion), was BCR’s head office until last year. The costs of the transaction amount to approximately EUR 36.0 million – the closing took place today.

“This agreement represents an important step for IMMOFINANZ in strengthening its high-quality office portfolio and its innovative myhive office brand in Bucharest. The Romanian economy will recover rapidly from the decline caused by the pandemic in 2020 and we expect positive developments in the coming years,” stated Dietmar Reindl, COO of IMMOFINANZ, highlighting the attractiveness of the market. “As part of the planned refurbishment into a high-quality, modern and sustainable office property under our flexible premium myhive brand, we will also provide more space for the public area and the green city terrace will bring a highly appealing central attraction to the residents of the city.” The renovation work is scheduled to begin following the planning and approval phases in the second half of 2022, with completion scheduled for 2024.

“The Bucharest Financial Plaza plays an important role in the latest developments in the city. It is uniquely located in the heart of Bucharest and offers access to a multitude of shops, restaurants and recreational activities. We are very pleased to have found IMMOFINANZ as a partner, with its many years of expertise in the Romanian market and the expertise to further develop the potential of this landmark”, said Michael Werner, Real Estate Management Executive Director at BCR.

The Bucharest Financial Plaza is not only the tallest office building in the city center at almost 70 meters, but is also an architectural symbol. The location on Calea Victoriei, the main street in the historic city center, provides excellent access to private and public transportation links, including three subway stations in close proximity. Since 2000, the Bucharest Financial Plaza has also formed part of a popular shopping district.

IMMOFINANZ in Romania

IMMOFINANZ has been investing in Romania for over 17 years. As of 30 September 2020, the Romanian real estate portfolio had a carrying amount of EUR 757.3 million, equivalent to 15.3% of the overall portfolio. The 13 standing investments have rentable space of around 334,000 sqm, with an occupancy rate of 93.6%. The largest properties include the two Bucharest office buildings, myhive S Park and myhive Metroffice, as well as the two shopping centers VIVO! Cluj and VIVO! Constanta.

(23.03.2021)

COVID-19 pandemic has undoubtedly changed the way we work around the world. A study carried out on behalf of the Skanska office development division in the CEE shows that from the total number of people interviewed, in March 2020, during the first wave of the pandemic, 39% of them went to the office every day. Currently, their percentage has increased to 49%. In Romania, the percentages progressed from 38% in March 2020 to 51% today.

The Great Disadvantages of Working from Home

The lack of a clear separation between work and home is seen as the biggest disadvantage of working from home (more than 40% of respondents say this). Limited social life and monotony are other disadvantages when working from home. One in four people complains about the high costs of maintaining their home, and also about the lack of equipment and infrastructure available at the office. About 1/3 of respondents say they lack the possibility to work from the office. In Romania, this desire is even bigger, almost half of the Romanians in the study said that they feel the need to work from the office. Also, people who work in team believe that working from home is less efficient, and the lack of “face-to-face” discussions is mentioned much more often as a disadvantage (37% from the Romanian respondents). People with young children are more likely to complain too about the limitations of working from home compared with the possibilities offered in an office space.

Over 50% of all respondents in Romania go to the office every day

In Romania, the percentage of people who worked from home in the first wave of the pandemic has decreased significantly in the last period, and the number of people who go to the office every day has reached 51%. The mental comfort of office work is highly appreciated by CEE employees who have children (almost 1/3 from the total of 19%) but also by people who have to share a room at home with their children (45% from the total of 19%). According to the study, 57% of respondents indicate that safety certificates, such as the WELL Health-Safety Rating have a positive impact on their sense of security in the office, and in Romania, this percentage is even higher, reaching 64%.

“People are the most important asset of a company, and for us, their safety and well-being have always been a priority. The opportunity to go to the office, to work in a team, to communicate, to be with their colleagues, is a valuable part of daily life, allowing employees to maintain their effectiveness, creativity and mental comfort. The sense of belonging and human relationships are altered in the online environment. It is very important for us that employees who return to the office feel safe from the first moment they walk through the access doors in the buildings until the end of the program, which is why we have implemented all the security measures since the beginning of the pandemic and until now.” says Anne-Marie Diaconu, Leasing & Asset Management Director at Skanska commercial development business unit in Romania.

The study focuses on four countries in Central and Eastern Europe – Poland, the Czech Republic, Romania and Hungary. Its main aim was to analyze the current situation concerning work models on the labor market in terms of the COVID-19 pandemic. The responses were collected from 1,200 office workers in four countries – Poland, Romania, the Czech Republic and Hungary.

(17.03.2021)

More projects that contribute to smarter cities, integrated in a clear, long-term urban strategy, are needed in Romania. Because we all aim for a smart economy, smart mobility, a smart environment, smart people, smart living and smart governance, says Decor Floor, regional leader in commercial flooring, in a discussion with BUCHAREST REAL ESTATE CLUB. 

“This formula can transform Bucharest in a European capital, able to keep up with both new generations and latest technologies”, says Octavian Moroianu, Managing Partner at Decor Floor, regional leader in commercial floors. In his opinion, Bucharest still needs experienced investors and developers with expertise in complex architectural projects with features to improve the quality of life in the city.

    The real estate developers on the local market are showing an increasingly large interest for investments in modern office buildings. This is why, today we live in a European capital where most of the buildings are Class A certified and two of them are rated among top ten greenest LEED certified office buildings in the world: Business Garden Bucharest C and Business Garden Bucharest B. These are projects where Decor Floor supplied and delivered floor finishes from its portfolio.

    In the last 15 years, Decor Floor CEE became a major player in the commercial flooring segment and a trustworthy partner in the real estate market. With a total turnover of EUR 10 mil. in 2020, Decor Floor delivered more than 150.000 sq m of raised access floor systems for the most iconic office buildings in Bucharest, such as Globalworth Campus C, Țiriac Tower, Equilibrium Phase 1 by Skanksa and One Tower @ Floreasca City. Its target for 2021 is to contract a minimum of 120.000 sq m. of raised access floor systems.

  They say that an extremely important element for success consists in providing premium services and products for both local companies and for corporations on the local market as well. ”If we were to speak in terms of square meters, let’s say for carpet, most probably the number would be around 145.000 sq m delivered in 2020 for tenants like PWC, NTT Data Romania, Royal Canin | Mars, and RPHI” Octavian Moroianu says.

One of their major projects, implemented during 2020-2021, is Țiriac Tower. Located in the heart of the city, for this project Decor Floor delivered and installed 12.800 sq m of raised access floor, 3.500 sq m of ceramic tiles and 900 sq m of ventilated facades, mechanically fixed to the building using a metallic structure, duly designed and checked, on which the external face in porcelain tiles is installed.

”This is an important step forward that will allow us access the ventilated facades segment with more confidence. Today, we have projects signed under letters of intention for more than 25.000 sq m of ventilated facades, forecasted to be completed during 2021 – 2022”, concluded the Managing Partner of Decor Floor, Octavian Moroianu.

(11.03.2021)

Romania is a balanced market as regards the presence of women in management and top management roles of real estate companies and their annual incomes can exceed 300.000 EUR per year, according to the most recent analysis by BUCHAREST REAL ESTATE CLUB. At its 2nd edition this year, WOMEN IN REAL ESTATE initiative aknowledges the role of women in managing and developing significant real estate businesses in Romania.  

Romanian women manage large real estate investments and assets in excess of 5 billion EUR, leading the activity of companies across the entire spectrum of the real estate sector: investment funds, real estate development companies, asset management companies, advisory and brokerage, as well as successful entrepreneurial businesses such as architecture and interior design firms.

Women in top management roles (CEO, COO, CFO) may excced net annual incomes of EUR 100.000 EUR, plus 3-5% ad-ons from the annual profit of the projects they manage („shared profits” participation), according to WOMEN IN REAL ESTATE analysis by BUCHAREST REAL ESTATE CLUB.

The middle management roles (Marketing Director, Commercial Director, Legal Manager) are remunerated with incomes that may exceed 50.000 EUR per year, with performance – related bonuses. For example, commercial directors in the residential segment can ad to their salaries a plus of 1% of the total sales volume they coordonate.

In the brokerage sector, senior department managers are remunerated with 36.000 – 55.000 EUR annually, plus commissions of 8-25% of the incomes they generate for the company. 

“In an atypical year as it was the case of 2020, the women`s performance in real estate management roles in Romania are the more notable.

They adjusted their companies` actions and business plans according to the new reality, they negotiated, re-negotiated and signed large sales or rent transactions of the real estate assets and they even decided the start of new real estate investments, under full pandemic circumstances. As compared to the Western European countries, Romania is a particular market, with women managers being very present and visible in the real estate sector, being remunerated as such,” states Despina Ponomarenco, President of BUCHAREST REAL ESTATE CL)UB.

(8.03.2021)