In the Spotlight

In the Spotlight

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.

The demand for new residential units is rebounding

The demand for new residential units is rebounding 936 516 BUCHAREST REAL ESTATE CLUB

29.09.2023

The demand for new apartments in Bucharest registered a 46% increase in the second quarter of the current year compared to the same period of the last year, while the supply has a minus of 26%, as shown by the immobiliare.ro analysis presented at Residential Conference – The Future of Quality Living organized by BUCHAREST REAL ESTATE CLUB (BREC) this week in Bucharest.

The data show increases in demand in every area of Bucharest, starting from 11% for the West area, up to 54% for the North area.

The offer is decreasing: -44% in the North, -31% in the East, -22% in the West and -16% in the Center. Only the southern area has an increase of 6% for the supply of new apartments. Prices register decreases of 2% in the West, 3% in the East, 4% in the Center and 9% in the South. The North is the only area where prices increased with 7%.

“At the level of the Bucharest market, demand has recovered from last year’s dramatic drop, from the second quarter. At that time the outlook was bleak: war on our border, galloping inflation, rising interest rates, rising prices. However, the market has shown maturity and resilience, and even if we have not yet exited the risk zone, we have reasons to look with some optimism at the next period. We hope that the impact of the new fiscal changes will not be likely to affect the course of the market, and if this is the case, then we will be able to see a beneficial 2024 for the residential market”, says Dan Niculae, Managing Director, Imobiliare.ro Finance.

In the context of the VAT increase from 5 to 9%, the elimination of facilities for the construction industry as well as the increase of the minimum wage for this field, the medium and long-term forecast is of an increase in housing prices.

“The data presented show a clear decrease in supply of 26% in Q2 2023 compared to Q2 2022 and 12% in Q2 2023 compared to Q1 2023. The difficulty of authorizing new projects, given the urban gridlock in Bucharest, will cause a sharp decrease in the supply of new homes and price pressure”, says Despina Ponomarenco, BREC President.

The new unit rental segment saw significant demand growth of 63% YOY and 17% compared to Q1 2023. Broken down by area, the increase in demand for new apartments for rent starts from 49% to 71% in Bucharest.

Urban congestion reduces the accessibility of Bucharest

Urban congestion reduces the accessibility of Bucharest 1200 600 BUCHAREST REAL ESTATE CLUB

27.09.2023

The lack of predictability currently manifested by the project to modify the fiscal measures affects not only the business environment, but also consumers and will generate major imbalances in the market, believe the representatives of the largest real estate companies, members of the Bucharest Real Estate Club organization (BREC). They participated yesterday in the debate Residential Conference – The Future of Quality Living, the main topics being the turbulence affecting the fields of construction and real estate in Romania.

Even if, fundamentally, the developers agree that the Government’s plan to increase taxes is reasonable, considering the fact that their level is lower in Romania than in other countries, they believe that such changes must be announced in time so that the environment businesses to adjust their investment plans accordingly.

Andrei Diaconescu, co-founder of One United Properties, spoke in this regard about transitional provisions that should have been adopted as part of the plan to modify the tax package. “I find the Government’s plan reasonable, even if I do not agree with the tax increase. When European money comes through PNRR or other mechanisms, I understand why tax facilities are removed for some categories such as builders, but there are private investors who do not benefit from European funds and who have large projects that develop for several years. In their case, it would have been reasonable to benefit from transitional provisions, which would give them time to adapt their plans”, said Andrei Diaconescu.

Tinu Sebeșanu, CEO of Impact Developer and Contractor, disapproves of the way the fiscal changes were debated and the short implementation time. “In Germany a tax increase of 1% was announced 3 years before. The German state recently announced incentives for residential developers. Romania’s budget has been bleeding for years and we are permanent blood donors. The impact of the new measures is not major, but it creates pro-cyclical measures and we would have liked more predictability”, said Tinu Sebeșanu.

The lack of predictability is the reason why Cordia, part of the Hungarian group Futureal, changed its plans regarding Romania. “Our plans could not be developed in Romania as we originally proposed. As an international investor, we had to move to other markets for the time being, where conditions are favorable and predictable. In Spain we have a project under development and we bought two other plots, the last transaction, worth 46 million euros, being among the largest in the Costa del Sol in 2023. This money could have come to Romania, a market in which we will remain and in which we will continue to develop residential projects”, said Mauricio Mesa, General Director, Cordia Romania and Spain. The company announced in 2019 a budget of 120 million euros for the development of projects and 40 million euros for the acquisition of land, currently having a portfolio that allows it to develop more than 2,000 apartments.

Also speaking about predictability, Laurențiu Afrasine, CEO of Akcent Development, referred to an official meeting of real estate developers last year with Prime Minister Nicolae Ciucă, who assured them that the Government had no intention of changing taxes. “There will certainly be an impact on many levels, especially the emotional one for the buyer, who will be faced with the new prices.” Afrasine said.

Developers continue to face the urban gridlock that is chronically manifested already in Bucharest and is beginning to make its effects felt in other large cities as well.

What are the solutions for unblocking Bucharest? Andrei Diaconescu claims that the first step is the unblocking of the Zonal Urban Plans (ZUP) by sector, the next is the adoption of the General Urban Plan (GUP). “GUP should have been ready much faster, it’s already been going on for several years. If you don’t have a GUP, you can’t develop anything on a plot of land of over 3,000 square meters.” said Diaconescu, and in the end everyone suffers. “We all bear the burden of traffic, the city is developing towards the periphery, but schools, theaters, workplaces are in Bucharest, so transit traffic is increasing, a situation that I don’t know if it is taken into account by the local authorities”, Diaconescu also said.

The consequence of the urban uncertainty is the decrease in the accessibility of Bucharest, as the demand for apartments and new office spaces will recover, but the supply will decrease.

Globalworth appoints Ema Iftimie as Managing Director for its operations in Romania

Globalworth appoints Ema Iftimie as Managing Director for its operations in Romania 900 600 BUCHAREST REAL ESTATE CLUB

Globalworth, the leading office investor in Central and Eastern Europe (CEE), announces the appointment of Ema Iftimie as Managing Director for its real estate operations in Romania. Starting December 1st, Marian Popa will step down as the Managing Director and Ema Iftimie will assume this role, focusing on operational, business development and customer care.

“I express my sincere gratitude to Marian Popa for his outstanding management over the last three particularly challenging years. After a distinguished 50-year career, Marian has decided to retire and focus on his personal life. His contributions have been invaluable, and we wish him all the best for the future. Ema Iftimie’s appointment aims to enhance customer service, strengthen our local operations, and cultivate an even more dynamic and productive working environment. I have every confidence that Ema’s vision and leadership will be pivotal in leading our local team to even greater successes.” said Dennis Selinas, CEO of Globalworth.

Ema Iftimie is a seasoned professional with an impressive tenure of almost 25 years in real estate, 10 of which she’s dedicated to fostering growth for Globalworth Romania through a top-tier leasing strategy. Under Ema’s supervision, the leasing department of Globalworth Romania has accomplished remarkable results in the first half of 2023, leasing 100,000 sqm of office space – a significant figure given that the total market demand was 188,000 sqm. She has proven her expertise in negotiating significant contracts with leading industry companies while managing a vibrant team of leasing professionals and ensuring bespoke service for each tenant. Ema holds a degree in Sociology and Psychology and various diplomas in management, negotiation, and business planning.

“I am delighted to start my new assignment as Managing Director for our real estate operations in Romania and I look forward to continue working closely with the experienced Globalworth professionals. Our commitment to excellence, tenants’ satisfaction and innovation remains unwavering. We will continue to invest in our people, technology and processes to ensure we stay at the forefront of our industry, addressing the future challenges by making our adaptability a source of strength.” completed Ema Iftimie.

Three possible positioning scenarios in the context of the urban blockage in Bucharest

Three possible positioning scenarios in the context of the urban blockage in Bucharest 1618 1080 BUCHAREST REAL ESTATE CLUB

Two years have passed since Bucharest has been blocked at the urban planning level, as a result of the suspension or annulment in court of the Urban Area Plans (PUZs) for Bucharest’s districts, while the clarification of the urban aspects remains a long-term wish as the collecting and updating of relevant data for the new General Urban Plan (PUG) was only launched in January 2023.

Developers and active investors on the real estate market in Bucharest met in an event recently organized by the law firm Schoenherr and SCA Associates, with the aim of identifying possible ways to overcome the current deadlock.

The even application of legislation in the field, the revision of the legislative framework so as to allow the reduction of bureaucracy through digitization, the correlation of the measures taken by the authorities with a serious analysis of the social impact of these measures and, above all, stability and predictability – these are some of the necessary general directions identified by the participants in the debate.

“Real estate developers have, at this moment, three possible positioning scenarios in the context of the urban blockage in Bucharest: to wait, to give up on the development of certain projects or to react. The decision to opt for one of another depends on the particularities of each project, and our practice shows that there are effective legal solutions to implement in any of these scenarios. But it is important to draw attention to the fact that these solutions address the effects and not the cause of the blockage”, said during this debate lawyer Sebastian Guțiu, managing partner of Schoenherr and SCA Associates, who coordinates Schoenherr’s real estate practice in Central Europe and Eastern/South-Eastern Europe.

The consequences of urban blockage, just getting started? Possible solutions

“The effect of the urban blockage in Bucharest will be seen especially in the coming years. Unfortunately, the problem extends to the entire country, where large delays have occurred in projects. We therefore observe a domino effect. The causes are excessive legislation and bureaucracy. I think that, for unblocking, we need to go back to the legislation and reduce the bureaucracy through digitalization, to find simpler solutions”, said Tinu Sebeșanu, CEO of Impact Developer & Contractor.

“The legislative framework is very important, but perhaps equally important is the way in which the legislation is applied. I think that a unified approach at the level of the authorities (and their representatives) is essential in applying the legal provisions and safeguarding the legislative stability, which would increase the level of predictability for real estate developers and investors”, said Robert Ioniță, director of the legal department of the NEPI group Rockcastle at the regional level. He added: “The current blockage in Bucharest is, to the best of my knowledge, unique in the Central and Eastern European region, where the NEPI Rockcastle group is active in nine markets.”

Currently, as districts 1, 3, 5 and 6 do not have a PUZ (either they never had one or it was annulled in court), urban planning projects in these districts is done accordinglyto a PUG issued in 2000, the only exception being district 6. For the other two districts – 2 and 4 – the PUZs are subject to annulment actions.

The PUG from the year 2000 will remain in force until a new one is adopted, but the optimistic deadline for this to happen is 2025. Moreover, experts warn that “depending on the outcome of the court actions regarding a possible annulment of the PUG (now in the appeal phase), in the event of the cancellation of the PUG, we could find ourselves in a situation where we go back in time 27 years, returning to the Urban Planning Regulation from 1996”, said Mădălina Mitan, a lawyer specialized in real estate, managing attorney at law within Schoenherr and SCA Associations.

Recently, the unblocking of the PUZs for districts 2 and 4 was achieved at the first ruling in court, this decision representing a first step towards unblocking an artificially created situation and it sends a signal that things can evolve in a good direction for Bucharest.

“We have reached a situation where the urban development of Bucharest is decided in court and this happens because there is no dialogue between authorities, investors and the beneficiaries of urban development, mainly the citizens. The figures are clear, the GDP is decreasing because the contribution of the real estate sector has decreased. It is difficult to attract new investors to Bucharest in the absence of a predictable and coherent legal framework”, said Despina Ponomarenco, president of the Bucharest Real Estate Club (BREC), the main organization of the real estate industry.

Among the possible solutions with the potential to simplify and clarify legislative aspects in the field of urban planning and construction, the Urban Planning Code should have been adopted by the end of March this year. At its current stage in the legislative process, however, it is unlikely for it to be adopted before 2024.

The social impact must be considered. 70% of buildings in Romania, unsafe

Real estate developers and investors underline that the social impact of certain measures is not taken into account by authorities. At the same time, the urban blockage is all the more difficult to understand when Bucharest has a housing fund that is largely weakened and would be unable to cope in the event of a major earthquake.

“I recently attended a seminar at the Bucharest Technical University of Construction on the subject of earthquake resistance of buildings and learned that 70% of buildings in Romania do not meet earthquake safety standards, according to university statistics. Therefore, the natural question is how is it possible to block the renewal of the housing fund when 70% of the current one is expired”, said Andrei Diaconescu, co-founder of ONE United Properties.

18 approvals for erecting a fence

Laurentiu Afrăsine, CEO Akcent Development, draws attention to the way in which the legislation is applied. At the same time, he rings the alarm about the possibility that the urban blockage may also have an impact on investors’ interest in Bucharest as a destination for their businesses: “The effects of the urban blockage will be seen in the next two years, and I don’t think I’m exaggerating when I’m saying that they will be devastating because foreign investors are no longer looking at Bucharest, even though the price per square meter is lower than in Budapest and Warsaw. I’ll give you a telling example for the current situation: we recently needed 18 approvals to obtain an authorization to build a fence and in the future we will need dozens of approvals for utilities,” said Laurentiu Afrăsine. He emphasized that, in addition to the PUZs and building permits, there are also problems with the issuance of building certificates, which has serious consequences for the final buyer.

The current situation does not solve Bucharest’s problems, but deepens them. Traffic and pollution are increasing due to the many developments around the Capital. The latest official data shows that the population of Bucharest decreased by 166,400 in 2021 compared to 2011, while the population of Ilfov increased by 153,000 in the same timeframe. Investors expect an increase in the discrepancy, considering the numerous construction sites in Ilfov and the considerable decrease in those in Bucharest. The migration of people outside the city limits puts more pressure on traffic, as most of them still carry out the vast majority of their activities in the Capital.

FlyGo, the new tenant of Skanska’s Equilibrium 1

FlyGo, the new tenant of Skanska’s Equilibrium 1 400 600 BUCHAREST REAL ESTATE CLUB

The European online travel agency FlyGo is relocating its Bucharest offices to Equilibrium 1, the first building of the Equilibrium complex developed by Skanska in the Northern area of ​​the Capital.

“We are glad that FlyGo chose the Equilibrium project as the new space for the company’s operations. This recent partnership shows us as well how beautifully shaped the diversity of tenants is and the industries they’re part of. We are very proud of the community we have created in Equilibrium and of the good energy you feel when you walk through the door of our building” says Tamara Guleryuz, Leasing&Asset Manager for the business development division Skanska CEE

The new FlyGo space will become operational starting July 2023.

With over 15 years of experience in Europe, the FlyGo travel agency offers its customers low-cost and regular flights at competitive rates, even for last-minute bookings. Currently, the FlyGo company owns 4 portals in Europe: FlyGo Italy, FlyGo Romania, FlyGo Spain, FlyGo Poland.

The Equilibrium office complex, consisting of two buildings, has become a reference in the Northern area of ​​the Capital, on the one hand because it is redefining the spaces and the working environment and on the other, because it’s giving a completely different aesthetic perspective on the area. The 3,500 square meter garden accessible to the entire community, the sustainable solutions implemented in the building that have a positive impact in reducing the energy, water and electricity consumption and the design focused on flexibility are the basis of the concept on which the entire project was developed. For the operation of the Equilibrium 1 building, Skanska contracted 100% electricity from renewable sources.

The LEED certifications, Well Health-Safety Rating and Net Zero Carbon Building pre-certification for the Equilibrium 2 building are confirmation of the way in which Equilibrium is built, with special attention to the comfort, safety and health of residents and users.

Women in Real Estate on the cover of Business Magazin

Women in Real Estate on the cover of Business Magazin 454 600 BUCHAREST REAL ESTATE CLUB

Supporting women’s empowerment represents a healthy foundation for a thriving and sustainable economic environment.

The fourth campaign promoting gender equality was promoted on the cover of Business Magazin and with an ample cover story inside this reputable publication.

“Last year we faced numerous challenges: in addition to the pandemic restrictions, the war with Ukraine brought a lot of uncertainty and an explosion of costs. Women in top management positions from the real estate industry have succeeded to manage the situation both on a business and human level, contributing to a smooth transition in this difficult context”, said Despina Ponomarenco, President BREC.

The cover story featured Alina Necula, Country Manager, Lion’s Head; Laura Bencze, Director, Investment Properties, CBRE Romania; Roxana Dudau, Partner Wolf-Theiss Romania; Florentina Mitricoaia, Leasing & Asset Manager, RPHI and Brindusa Grama, Head of Asset Management, Square 7 Properties. You can read the entire article here: https://www.businessmagazin.ro/cover-story/women-in-real-estate-cum-se-poate-construi-armonios-o-cariera-in-21665370

The annual campaign ended with a networking event, held in the lobby of U.Center business park,
where our guests enjoyed the opportunity to test the BMW iX, the symbol for a new era of mobility at BMW, conceived for fully electric driving pleasure.

Cătălin Rotaru is the new CEO of THETA Furniture & More

Cătălin Rotaru is the new CEO of THETA Furniture & More 900 600 BUCHAREST REAL ESTATE CLUB

THETA Furniture & More, one of the most important integrators of interior design solutions in Romania, announces the appointment of Cătălin Rotaru as CEO (Chief Executive Manager) of the company, effective February 1, 2023. Thus, Cătălin takes over the executive leadership directly from its founder, Florin Gheorghe, in times of accelerated development of THETA Furniture & More into a player with international impact.

Specialized in materials engineering, Cătălin Rotaru has almost 24 years of experience in the ceramics industry. Before joining THETA, Cătălin held the position of Group Commercial Manager for 4 years at KAI, a ceramic manufacturing company owned by Marazzi Group (part of Mohawk Industries, world leader in flooring products). Until its acquisition by the American company, Cătălin was Country Manager for Romania over of period of 10 years, managing to grow KAI from the level of a new entry company in the market to the most important supplier of ceramic tiles in the country.

“I am grateful for the extraordinary team of professionals with whom I have grown the company all these years. The time has come to upgrade to the next level in our development course. With trust, i am handing over the CEO position to Cătălin, however keeping my involvement in the area of ​​strategic business development of the company. I am confident that together we will continue to grow the company on the local market and also we will succeed to become a business with stronger international presence.” says Florin Gheorghe, Co-Fondator THETA Furniture & More.

“Working closely with players from the office market and other commercial spaces in Romania, it is a really fascinating challenge for me to proceed into interior design and fit-out world. Consolidating the leading position on the local interior design & fit-out market and amplifying the company’s promise to deliver innovative and creative solutions as a renowned interior general contractor, I consider to be relevant objectives in the company’s development process. The competitive advantage of owning a custom furniture manufacturing plant will continue to be the company’s strong point. More than half of the projects delivered by THETA’s team are designed and executed in the factory, and we aim that the concept “made in Romania” to be associated not only with tradition, but also with quality”, points out Cătălin Rotaru.” I am taking over the management of a market leader and a solid business model, and I am ready to carry on the vision of its founders.” adds Cătălin.

Cătălin attended BISM – Bucharest International School of Management courses, also completiting a series of trainings and improvements in operational and team management. He owns a Master’s degree in “Engineering of Industrial Systems” and graduated from Politehnica University of Bucharest, the Department of Engineering Science, Oxides Materials Science Faculty.