In the Spotlight

In the Spotlight

Investment briefing: strong fundamentals for Romanian real estate market
Investment briefing: strong fundamentals for Romanian real estate market 1920 1280 BUCHAREST REAL ESTATE CLUB

Investment briefing: strong fundamentals for Romanian real estate market

Romanian real estate market has strong fundamentals and an eventual correction will be a moderate one, that was the conclusion of the most important investors and consultants during the Investment Briefing roundtable organized last week by Bucharest Real Estate Club at Athenee Palace Hilton, in Bucharest.

The event was attended by top real estate professionals, IT companies and representatives of international chamber of commerce in Romania. Itay Banayan, VP, Real Estate for Mindspace, one of the most recent companies to enter Romanian market with a strong leasing deal of 12,000 sqm, Mihai Zaharia, Director of Investments & Capital Markets, Globalworth, Robert Miklo, Director, Investment Services, Colliers International Romania, Marian Popa, Ori Efraim, Head of Real Estate, KPMG, Oana Motoi, Managing Partner, Cromwell Evan Global and Roxana Dudau, Associated Partner, Noerr were among the speakers.

“The office segment remains our core area for portfolio development, but we are also looking more carefully towards the logistic sector. We have such a project in Timisoara that we are developing, but we are also analyzing other cities for new investments, such as: Cluj, Sibiu or Constanta. We choose to develop because there aren’t enough available products on the market”, Mihai Zaharia, Director of Investments & Capital Markets, Globalworth said during the event.

“When the next dip arrives, it will likely be shallow, supported by balanced, robust fundamentals in markets,” Robert Miklo, Director, Investment Services, Colliers International Romania argued in his presentation. He added: “Internal migration patterns will drive real estate with a strong hand and growth will come from regional hubs mostly.”

“Landlords that implemented the last valuation reports at the end of 2016, should reassure to update them until March 2019, to avoid paying the property tax at an increased quota of 5%”, said Oana Motoi, Managing Partner of Cromwell Evan Global, a recent established company active in the tax & business advisory fields.

In a premiere at a business event on the Romanian market, Itay Banayan, VP, Real Estate for Mindspace spoked about new workspace format: “We provide high-end, flexible, tech-enabled workspaces for our member-based communities of large enterprises, small businesses and entrepreneurs. We are organizing and hosting hundreds of events every month, such as lectures, workshops, networking events, tech talks or professional meetups. This is our way of making Mindspace the center of attraction for the local ecosystem. It helps to create an outstanding reputation as well as attract new customers,” he said.

The workspace format triggered quite a debate. Marian Popa, Country Manager for Deutsche Bank Technology Center which employs now 900 people in Bucharest commented: “Our employees work one day per week from home. This initiative determined the decrease of our space need by 15%. New operators such as Mindspace are good news for us because they offer a cheaper and more efficient solution. The market should reorient towards <<services area>> or else the buildings will be partially empty until 2030.”

Commenting on what can Romania implement in the legal field, in order to be more attractive for investments in real estate and to attract the long awaited institutional investors, Roxana Dudau, Associated Partner of Noerr, said: Granting fiscal incentives in Bucharest for green buildings (already implemented in Cluj Napoca and Timisoara) could attract more institutional investors. Bucharest is the city with the biggest number of green buildings and such incentives are not yet granted.”

Ori Efraim, Head of Real Estate, KPMG, presented the conclusions of the “Property Lending Barometer 2018”, a survey among 70 banks from 14 European countries: “Most Romanian banks in the KPMG survey emphasized the importance of real estate financing in their banking strategy. In comparison with last year’s query, about 40% of respondents have increased their focus on the sector significantly whilst the remaining 60% have maintained their positions. All of the banks are open to provide financing to income generating projects, whereas only 40% are open to finance new developments”, he said.

The topics discussed at the roundtable have also been presented in the media, generating new subjects on the public agenda:

Capital -> https://bit.ly/2RTDDvC
Economica -> https://bit.ly/2zOClL2
Capital -> https://bit.ly/2PXZCny
Adevarul -> https://bit.ly/2QEYumb
Economica -> https://bit.ly/2T8gF5e

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PwC: Logistics ranked no. 1 for Investment in Europe
PwC: Logistics ranked no. 1 for Investment in Europe 1440 1080 BUCHAREST REAL ESTATE CLUB

PwC: Logistics ranked no.1

for Investment in Europe

General economic outlook is positive, with expectations for profits and headcounts to increase in 2018, according to Emerging Trends in Real Estate®: Europe 2018 survey by PwC & Urban Land Institute, based on 512 respondents from across 22 European countries. The key issues impacting businesses this year are the availability of suitable assets/land and construction costs.

MAIN TRENDS

INDUSTRIAL SECTOR IN THE FOCUS

Given the impact of technology upon real estate, industrial sector is ranked number one for investment and development prospects in 2018, largely on the back of the growth in online retail sales.

“Technological change is clearly playing out in the retail sector, and as retail shrinks, logistics expands, as does the last-mile delivery convenience to the consumer”, says one global capital markets adviser.

RESIDENTIAL HITS TIPPING POINT

Until recently, residential was seen by many institutional players as a niche sector, and for some, too specialist. Today, the industry appears less bothered by the obstacles to investment and increasingly swayed by the opportunities that could emerge from huge housing shortages across Europe. The Emerging Trends Europe survey reveals availability of affordable housing as one of the key social problems facing the industry in 2018 – more of a concern than environmental issues and mass migration.

REDEVELOPMENT INSTEAD OF SPECULATIVE DEVELOPMENT

Redevelopment is the most attractive way to acquire prime assets, thus translating into a low-risk strategy based on astute asset management and refurbishment rather than a hasty return to speculative development.

SMART ASSET MANAGEMENT

The greater importance attached to asset management reinforces the trend by institutional investors towards employing fewer and larger managers. Low returns and a lack of product in a late-cycle market have underlined the importance of “smart asset management”.

“We are not going to be able to generate the returns we want by buying assets and sitting on them,” says one pan-European investment manager. “We have to think about the management of the tenants, refurbishment and re-gearing.”

CO-WORKING TAKES HOLD

The rise of the flexible office sector and co-working stands out in Emerging Trends Europe. They are much more than simply property buzzwords but, as the interviews reveal, a workplace phenomenon whose influence has taken hold of the European industry in a profound way since last year’s report.

“As landlords we have to be more flexible,” says one convert to co-working. “Tenants are asking for shorter leases and break options. It requires a change in mindset and a willingness to take more risk.”
“Not everything is going to be WeWork,” says one value-add investor. “I still think there’s a huge amount of money to be made in traditional offices with larger occupiers. But the proportion of the market will grow for co-working, smaller companies, incubator space. Flexibility within buildings – the ability to sub-divide – becomes increasingly important, which comes back to obsolescence.”

Emerging Trends in Real Estate® Europe 2018 reveals an industry that is becoming more complex, yet more transparent and accessible. Whatever the outcome, it is certain that the industry will need new skill sets, new ways of collaborating outside traditional industry boundaries and new business models to survive and compete in the new real estate ecosystem. You can read more info about the survey here.

TOP 10 OFFICE DEALS, Q2 2018
TOP 10 OFFICE DEALS, Q2 2018 1500 1000 BUCHAREST REAL ESTATE CLUB

TOP 10 OFFICE DEALS, Q2 2018

Co-work takes hold in the second trimester on the office market in Bucharest, with two new international groups announcing their entrance on the local market: Mindspace in Globalworth buildings and Spaces in Campus 6.1 and Unirii View. Another important new entry has been confirmed – London Stock Exchange, thus reinforcing the potential of the Romanian office sector, with a positive signal to institutional foreign investors.

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

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

HUAWEI- LAKEVIEW– 6,300 SQ. M, RENEWAL

Chinese telecoms equipment maker Huawei has renewed its office lease deal in Lakeview, in a deal brokered by CW Echinox. The property is a landmark building in Bucharest’s most dynamic business hub from Barbu Vacarescu – Floreasca. The building was one of the first developed in this location by AIG Lincoln & Fabian, sold in 2013 to NEPI Group. It has a lettable area of 25,600 sq. m and has an occupancy rate of 98.8%.

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

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

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

Schlumberger, the biggest technology supplier for oil and gas industry, has signed a pre-lease deal with Forte Partners for 4,500 sq. m in the second phase of The Bridge project. The deal was assited by CBRE. Schlumberger will open a shared services center on the premises. The second phase of the The Bridge will be delivered in the first part of 2019. The project located near Basarab overpass, in the Center West submarket was recently sold by Forte Partners to Dedeman in what has became the biggest transaction of 2018.

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

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

SPACES – CAMPUS 6.1, 3,100 SQ.M, PRE-LEASE

Spaces, part of International Workspace Group which also owns Regus, pre-leased a 3,100 sq.m in Campus 6.1, the office project developed by Skanska, near the Politehnic University in Bucharest. The Spaces’ concept features collaborative areas, team rooms, co-working spaces, fully-equipped meeting rooms, furnished private offices and a café.

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

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

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

SPACES – UNIRII VIEW, 3,000 SQ.M, PRE-LEASE

Spaces leased 3,000 square meters of office space in Unirii View and will open in the autumn of 2018 its first business hub located in the central area of Bucharest. The deal was brokered by CBRE. Spaces is characterized by a modern and creative design, materialized in unique working environments that enhance the entrepreneurial spirit.

“It is a very good sign for the Romanian economy when such an important player like Spaces chooses to enter this market and to expand massively”, pointed out Răzvan Iorgu, Managing Director of CBRE Romania.

CAMPUS 6.1, 2.200 SQ. M, PRE-LEASE

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

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

DELPHI – GLOBALWORTH CAMPUS II, 2,1500 SQ.M, PRE-LEASE

The team of CW Echinox has assisted Delphi in pre-lease transaction of 2,150 sq. m in Globalworth Campus II. The business park will comprise three main office towers offering 88,000 sq. m. of GLA and 760 parking spaces.

One of the main tenants in the project is Amazon. Globalworth has became the leading office investor on the local market, with a portfolio exceeding 1 billion EUR.

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TOP 10 OFFICE DEALS, Q2 2018
TOP 10 OFFICE DEALS, Q2 2018 1500 1000 BUCHAREST REAL ESTATE CLUB

TOP 10 OFFICE DEALS, Q2 2018

Co-work takes hold in the second trimester on the office market in Bucharest, with two new international groups announcing their entrance on the local market: Mindspace in Globalworth buildings and Spaces in Campus 6.1 and Unirii View. Another important new entry has been confirmed – London Stock Exchange, thus reinforcing the potential of the Romanian office sector, with a positive signal to institutional foreign investors.

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

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

HUAWEI- LAKEVIEW– 6,300 SQ. M, RENEWAL

Chinese telecoms equipment maker Huawei has renewed its office lease deal in Lakeview, in a deal brokered by CW Echinox. The property is a landmark building in Bucharest’s most dynamic business hub from Barbu Vacarescu – Floreasca. The building was one of the first developed in this location by AIG Lincoln & Fabian, sold in 2013 to NEPI Group. It has a lettable area of 25,600 sq. m and has an occupancy rate of 98.8%.

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

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

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

Schlumberger, the biggest technology supplier for oil and gas industry, has signed a pre-lease deal with Forte Partners for 4,500 sq. m in the second phase of The Bridge project. The deal was assited by CBRE. Schlumberger will open a shared services center on the premises. The second phase of the The Bridge will be delivered in the first part of 2019. The project located near Basarab overpass, in the Center West submarket was recently sold by Forte Partners to Dedeman in what has became the biggest transaction of 2018.

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

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

SPACES – CAMPUS 6.1, 3,100 SQ.M, PRE-LEASE

Spaces, part of International Workspace Group which also owns Regus, pre-leased a 3,100 sq.m in Campus 6.1, the office project developed by Skanska, near the Politehnic University in Bucharest. The Spaces’ concept features collaborative areas, team rooms, co-working spaces, fully-equipped meeting rooms, furnished private offices and a café.

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

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

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

SPACES – UNIRII VIEW, 3,000 SQ.M, PRE-LEASE

Spaces leased 3,000 square meters of office space in Unirii View and will open in the autumn of 2018 its first business hub located in the central area of Bucharest. The deal was brokered by CBRE. Spaces is characterized by a modern and creative design, materialized in unique working environments that enhance the entrepreneurial spirit.

“It is a very good sign for the Romanian economy when such an important player like Spaces chooses to enter this market and to expand massively”, pointed out Răzvan Iorgu, Managing Director of CBRE Romania.

CAMPUS 6.1, 2.200 SQ. M, PRE-LEASE

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

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

DELPHI – GLOBALWORTH CAMPUS II, 2,1500 SQ.M, PRE-LEASE

The team of CW Echinox has assisted Delphi in pre-lease transaction of 2,150 sq. m in Globalworth Campus II. The business park will comprise three main office towers offering 88,000 sq. m. of GLA and 760 parking spaces.

One of the main tenants in the project is Amazon. Globalworth has became the leading office investor on the local market, with a portfolio exceeding 1 billion EUR.

 

(27.08.2018)

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Members’ news: Colliers sells the office portfolio of East Balkan Properties
Members’ news: Colliers sells the office portfolio of East Balkan Properties 2880 1920 BUCHAREST REAL ESTATE CLUB

Members’ news: Colliers sells the office

portfolio of East Balkan Properties

The real estate consultancy company Colliers International Romania advised East Balkan Properties plc in the selling of its office portfolio consisting of four buildings with a total area of 9,047 sqm, situated in strategic locations in the capital. The aquisition was made by Adam Europe.

 “The real estate investment market was characterized in the first half of this year by a very high diversity: properties with medium and very large premises, located in Bucharest and in regional cities, from different real estate sectors. This variety is very healthy for the market and marks the maturity of the portfolio of products available for sale”, Narcisa Stănimir, Senior Associate Investment Services at Colliers International Romania, said.

The portfolio includes four office buildings with a total area of 9,047 sqm, placed from the north of Bucharest to its center.

Airport Smart Offices is in the immediate vicinity of Henri Coanda Airport, Domenii Offices is located in the northwest area – near the Exhibition Area, Jules Michelet Office Building is near the center of Bucharest, in the historical part of the Romana Square, and Casa Mosilor Office Building is located between Universitate and Unirii Square, close to the cultural and academic institutions of the capital.

The positioning in these prominent areas, which also enjoy good connectivity to public transport, has favored a high occupancy rate, with a presence in these buildings of companies from various sectors of activity: marketing and advertising (e.g. McCann Erikson, Mercury Research), IT (e.g. Meti Logiciels et Services, Elkotech, Essensys Software), logistics (e.g. Militzer & Munch), construction (e.g. Martifer) and services.

East Balkan Properties plc is a private property company based on the Isle of Man and is invested in Romania, Bulgaria, Slovakia and Serbia. Adam Europe is coordinated by Isaac Cohen Hoshen.

EBP owns primarily logistics assets and industrial land. The office portfolio was purchased in 2006 and 2007 and managed since the acquisition by the asset and property management company Equest Investments SRL.

Adam Europe, a vertically integrated real estate investor and developer, under the coordination of Isaac Cohen Hoshen, acquired Phoenix Tower and Construdava Business Center in 2016, respectively 2017, announcing in this way the re-entering of the group on the Romanian market, which is under the extension of its portfolio of office buildings, but also the development of new residential projects, such as Reveria Palady 43 of Eastern Bucharest.

This year, the office segment will be the main attraction of the real estate investment market in Romania. Products are available, so, by end-2019, yield compression could happen quickly and the investment volume on the office sector could reach EUR 1 bn.

(23.08.2018)

Re-imagining office lobby
Re-imagining office lobby 2500 1407 BUCHAREST REAL ESTATE CLUB

Re-imagining office lobby

In a more and more crowded office market, with new hubs developing at fast pace, real estate investors are coming with new concepts, re-thinking the use of different functions, such as the office lobby.

According to “Innovation Spaces: The New Design of Work” study, the ground-floor of the office buildings is transforming “into community magnets that creatively draw like and unlike people together”. The study argues that the coffee shop on the ground floor is the easiest approach. “In other cases, the infusion of free, fast and pervasive wireless technology combined with more lounge-like spaces has transformed ground floors into working hubs”

WHAT CHANGES DO WE SEE ON THE LOCAL MARKET?

Globalworth has recently organized the first augmented art gallery, with video mapping animations in the lobby of its landmark building in Barbu Vacarescu, Globalworth Tower. The Human Extension by Victor Fota is part of the Art & Tech District, a cultural initiative founded by Globalworth in partnership with One Night Gallery that aims to promote the young generation of Romanian artists through emerging technologies and involve the community in the process. The company constantly uses the lobby and public spaces of its buildings to organize creative events such as art shows, street food caravans and other activations on different occasions.

SKANSKA IS ENVISIONING A LOBBY LIKE A SWEDISH SUMMER HOUSE

With the goal to redefine a vital part of every office building, by changing the lobby’s function from a transit area to a welcoming space, Skanska has collaborated with Danish architectural studio, Henning Larsen, to create a space with the feel of a Swedish summer house. The new lobby concept supports health and well-being in the workplace. The inspiration is Sommarstuga – the traditional Swedish summer house.

The new Skanska lobby concept can be easily rearranged to match the specifics of each and every futureproof office building in the company’s portfolio. In the same time, there are components that are common to every Sommarstuga inspired lobby. The design is based on several key elements: warm and comfortable light, natural materials, diverse spaces to meet and rest, and openness to the local communities.

IMMOFINANZ HAS IMPLEMENTED MYHIVE CONCEPT ON BUCHAREST MARKET

Austrian real estate investor has introduced its international office brand myhive in five of its office properties from Bucharest. The office brand stands for the friendly and lively atmosphere experienced in a hotel, combined with optimal infrastructure and services. The buildings are characterized by an inviting and lively atmosphere, attentive and helpful staff, easy accessibility and numerous services: shops and services for everyday needs, flexible and serviced offices, fast W-LAN in the common areas and a sport offering.

With acknowledged developers implementing their international concepts on the local market and new co-working brands such as Spaces or Mindspace to launch in the following period, it is a clear sign for institutional foreign investors that Bucharest is a strong market and offers high-returns.

(23.08.2018)

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Members’ news: Element Development launches industrial division
Members’ news: Element Development launches industrial division 1441 1080 BUCHAREST REAL ESTATE CLUB

Members’ news: Element Development launches

industrial division

Ionuț Dumitrescu launches Element Industrial, a real estate development company focusing on logistic projects. The new company will develop a portfolio of industrial projects in Bucharest and Romania. The first is ELI PARK 1, to be built in two phases on a 10-hectare plot, on DN 7, in the North outskirts of Bucharest, Chitila area.

 “Element Industrial will develop class A logistic parks, strategically located. We have taken the decision to start this business on the premises of an increasing consumption determining the significant development of both e-commerce segment and FMCG companies”, said Muler Onofrei, Managing Partner within Element Industrial.

25 MILLION EUR INVESTMENT IN A 45,000 SQ. M INDUSTRIAL PROJECT, NORTH OF BUCHAREST

ELI PARK 1 will total a 45,000 sq. m. lettable area of warehousing spaces and offices. The first phase of 20,000 sq. m will be delivered in the second quarter of 2019. ELI PARK 1 is conveniently located 4 km from the Capital’s City Ring Road, by DN7, a four-lane national road. The main benefits are the ease of access towards North and Central Bucharest as well as the immediate vicinity of Chitila/ Buftea, an area with significant labor availability, unlike other classical logistic areas with such problems, A1 – km 14 or 23.

Muler Onofrei is one of the most experienced real estate industrial managers, with a presence of 16 years on the local market. Muler has coordinated the Industrial department within Eurisko and was the director of Romanian branches for developers such as ProLogis, Soravia or Panattoni. He holds a RICS degree in “Portfolio Management”, as well as an MBA from Kellogg School of Management, Northwestern University. Within Element Industrial, Muler occupies the position of Managing Partner, with an active role in the company’s management.

The new project will be designed and executed following strictly class A international standards, with characteristics such as 11.5 m clear height, one loading bay for each 800 sq. m. of warehouse, generous 35 mtrs truck court and numerous parking places. The minimum leasing surface is 2,500 sq. m.

Element Industrial was established by Ionut Dumitrescu, a Romanian businessman with a solid expertise on the local real estate market. Between 1997-2007 he developed consultancy company Eurisko, which was sold in February 2008 to CB Richard Ellis, the real estate worldwide leader. Following this deal, he focused on real estate development: the first project was HQ Victoriei, a class A business center near Victoriei Sq, sold in 2012 to Zeus Capital. Begining with 2017, Dumitrescu partnered with the founders of One United to establish a new office division, One Office.

(23.08.2018)

Residential sector: as competition sharpens, quality increases
Residential sector: as competition sharpens, quality increases 1754 1241 BUCHAREST REAL ESTATE CLUB

Residential sector: as competition sharpens, quality increases

While investors agree the commercial segment of the Romanian real estate market has matured, with numerous qualitative developments delivered in the last couple of years, BREC takes a look at the residential segment where new, interesting moves take shape.
The general old, outdated stock of residential developments in Romania, built mainly before the 1990s, that have become inappropriate for living to the young urban, dynamic generation combined with the country`s general positive macroeconomics are the main drivers of the residential development. The Capital’s city poor public transportation infrastructure drives workforce to buy homes closer to their workspaces.

“In the last couple of years we can notice a bigger involvement of developers in the design stage. Their experiences have probably shown that a project not thoroughly designed has small chances to go well. Also, the increasing competition on the market is probably the single benefit of the intense residential demand”, Adrian Untaru, co-founder of architectural firm ADNBA told BREC.

If during 2014-2016 (the first years of market’s return) we could notice only a few qualitative projects and those were addressed mainly to the luxury niche, now there are more and more developments announced, which impress through architecture, interior design and facilities for residents and target the upper-premium segment.

The transaction prices in Bucharest are now at a level of 1,500 – 2,000 EUR/ built sq. m, excluding VAT on the upper-premium segment, while the luxury units are traded for prices ranging between 2,000 – 2,500 EUR/built sq. m, plus VAT.

FROM RETAIL TO RESIDENTIAL

Prime Kapital (the company founded by Martin Slabbert and Victor Semionov, known in the market for the development of NEPI) has recently announced an ambitious project, in the proximity of Barbu Vacarescu office hub: Avalon Estate. The new development will span over 8.1 hectares, with 3 major categories of units and facilities such as a Club house and lake access, 1.3 ha of park with play areas for children, 24-7 security and car-free alleys ensuring safety of the community within a well-designed urban concept. Avalon will be delivered in two phases: in 2021 and 2024.

“The project offers many valuable benefits – privacy, security, low density and low traffic volumes. It also features an opportunity to establish new roots in private village-type setting that offers a mix of housing types that minimize repetitive form from a design point of view,” said Maggie Kitshoff, Residential Partner Prime Kapital.

TIRIAC COMES BACK IN RESIDENTIAL

The real estate arm of the group owned by local businessman Ion Tiriac announced plans to resume residential projects. The company previously delivered Stejarii luxury compound in Baneasa and Residenz in Chitila. The company’s newest ambition is an urban regeneration project on a former industrial plot (IFMA) neighboring the North Railway station.

The architectural concept of Outbox Studio proposed numerous residential units from towers up to 80m height to low height buildings with terraces homes, vertical gardens and rooftop swimming pools. The project will address the corporate tenants of the recently created Center-West office sub-market. The company also plans residential developments in secondary cities such as Timisoara and Brasov.

ONE UNITED PROPERTIES, THE MOVERS & SHAKERS IN PREMIUM SEGMENT

The company co-founded by Andrei Diaconescu and Victor Capitanu is today one of the most active real estate developers, in the exclusive Central-North area of Bucharest.

One United Properties has finalized 376 apartments until 2018 and has another 453 units planed for construction.

The flagship project of the company is One Floreasca City, a mixed development with a class A office building – One Tower- and 3 exclusive blocks of design apartments – One Mircea Eliade. Within the same development, Auchan Romania will restore and modernize the former Ford factory in a contemporary retail space.

Other future projects include One Herastrau Towers (at the junction of Nicolae Caramfil and Aviator Alexandru Serbanescu) and One Verdi Park (on Barbu Vacarescu, near Verdi park).

BRISTISH-BASED LORECO CREATES NEW COMMUNITY IN THE NORTH OUTSKIRTS

British-based Loreco Investments envisioned a villa community in a quiet and green area from Balotesti, in the North outskirts of Bucharest. The design and urbanism phase spanned over two years, comprising the land and green spaces’ allotment, infrastructure, playground and other amenities in the park. Dumbrava Vlasiei is to be developed on a 90-hectare plot as a five “urban villages” interconnected by a green corridor.

The developer puts up for sale a diversified mix, from pre-fabricated Huf Haus models to villas designed by Romanian architects offering unicity, but also respecting the major urbanism plan of the entire community. The developer has invested 50 million EUR up to now in Dumbrava Vlasiei, his plan being to reach 1,000 units.

FIRST LOFT APPARTMENTS IN BUCHAREST

After its first residential compound on the local market developed in the South area of the Capital (The Park), Lithuanian-based Hanner now addresses a new development on the former Grivita brewery plant, in what seems to be Bucharest’s next real estate hub: the area neighboring Basarab overpass. 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 building – Maltarie.

“A true (hard) loft is a conversion of a vintage factory or warehouse. They have a harder edge as they are usually constructed of concrete or “mill” construction of exposed brick, original wood posts, beams and floors”, the company’s representative stated.

FROM OFFICE TO RESIDENTIAL

After they have build a brand as an office developer, local developer Forte Partners has announced project on the residential sector. The company has finalized last year a boutique project, Londra 27, and is now building the first phase of Aviatiei Park, a condominium addressing the upper-premium segment of the market.

“Located in the north of the capital, in an urban fabric which concentrates a variety of new technological activities, the project responds to a young public necessities of finding a place to call home near their professional area. The apartments diversity, the elegance of common spaces and green plazas define an elaborate and welcoming residential complex which complements the identity of Aviatiei neighborhood” the company’s official stated.

 “We hope for a quality increase of the new residential developments. And we do not refer here to a more expensive finishing, which doesn’t necessarily lead to a different way of living. We hope for an education of consumption towards the quality of the living space, towards a building in which we enjoy staying as well as we enjoy looking at it. Homes are, for most of us, the most important investment during lifetime. The way these homes pass the time test directly influences the investment. This can go up or down, according to the overall quality of the entire project. And in the last couple of years we have noticed many examples in both cases, enough to help this economic education we need so badly”, Adrian Untaru of ADNBA concludes.

With such developments under way and other also under designing phase, we can say the residential segment is taking the right steps towards maturity, bringing a new qualitative stock on the market in the following two to five years.

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Members’ news: CA Immo buys first phase of Campus business park
Members’ news: CA Immo buys first phase of Campus business park 1745 1440 BUCHAREST REAL ESTATE CLUB

Members’ news: CA Immo buys

first phase of Campus business park

CA Immo has acquired the first phase of Campus, the business park developed by Skanska in Center West Bucharest.  The transaction volume is around 53 million EUR. Campus 6.1 is an A-class office development, offering 22,000 sqm GLA. Completion is scheduled for Q3 2018; full occupancy of the building is expected by the end of the year.

 “Having acquired Millennium Towers in Budapest in 2016 and Spire Building B in Warsaw in 2017, we continue to pursue our target of continuous development and expansion of our CEE core market portfolios with the purchase of Campus 6.1 in Bucharest. The multi-tenant property is very well located and will be nearly fully let by takeover, clearly supporting our overall financial goals”, said Andreas Quint, CEO of CA Immo.

Campus 6.1 is the first phase of a four-building office complex Campus 6, the second Skanska’s development in Bucharest.

Campus 6.1 will comprise approximately 22,600 sq. m. with 11 floors above ground and two levels of underground parking, including an intelligent parking system.

Located at the intersection of two main boulevards, Iuliu Maniu and Vasile Milea, the property benefits from great visibility and exposure, having good access to public transportation.

The metro station is just across the street and trams as well as buses within 50 metres distance.

The property will feature a range of services such as a restaurant and a cafeteria with terraces as well as co-working green spaces equipped with multipurpose furniture and electric sockets and Wi-Fi.

Moreover, the property will be equipped with an intelligent building management system consisting of e.g. an IT Hub in the reception area, a dashboard showing consumption per tenant/floor as well as a virtual reception (check-in and access control for visitors).

A mobile app will connect all the services in the building and in the neighborhood delivering e.g. building info, event news and offering features such as food delivery, car sharing and maintenance help service.

Shared e-car facilities are available for tenants, as well as a Bicycle rental, which is located in front of the building. Bicycle facilities within the building include lockers and showers.

The closing of the transaction is subject to the conditions usual for such transactions and is expected end of 2018.

TOP 10 OFFICE DEALS, Q1 2018
TOP 10 OFFICE DEALS, Q1 2018 2000 1019 BUCHAREST REAL ESTATE CLUB

TOP 10 OFFICE DEALS, Q1 2018

The biggest ten office deals in Q1 2018 total 39, 373 sq. m, the podium concentrating two projects: one in CBD – Day Tower and the other one with two deals in Central West – The Bridge. The total gross take-up in Q1 amounts for 70,000 sq.m, while monthly prime office rent is at the level of 18,5 EUR/sq.m according to data by JLL. BREC compiled this top based on the information released on the market by developers & brokerage companies.

DAY TOWER – 11,500 SQ. M, PRE-LEASE

The first place goes to Day Tower, the office project of Greek-based Day Group, for the pre-lease deal of 11,500 signed with a company active in the energy sector. The new business center is accessible from Unirii Bvd, neighboring the Court Law Building. With nine above the ground floors, Day Tower was particularly sought after for its visibility in a dominant area of Bucharest. The new tenant will occupy the entire building, which is to be finalized in Q3 2018.

THE BRIDGE 2– 6,000 SQ. M, PRE- LEASE

Colliers Romania assisted UPC in the 6,000 sq. m leasing deal at The Bridge 2, the second phase of the business park Forte Partners is developing in the Center-West submarket, near the Basarab overpass. The new space will be the headquarters of the company, thus consolidating operations from two locations, the Nordului office and the one from Sema Park, starting in 2019. “After nearly a decade in its current locations, our client took a strategic decision by relocating its headquarters in a booming office area. This emerging office pole was chosen by our client given the potential of increasing its employees’ satisfaction”, said George Didoiu, Associate Director Office Agency at Colliers International Romania.

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

The same building is the protagonist of the third place in our top, as C&W Echinox assisted Forte Partners in a lucrative 4,500 sq. m pre-lease deal, a relocation from a non-competitive stock.
The Bridge office project received the highest LEED Platinum scorecard certification awarded by US Green Building Council (USGBC) for a Romanian property. The Bridge 2, with a leasing office area of 21.000 sqm, is under construction and will be delivered in the last quarter of 2018.

CITY GATE, 4,050 SQ.M, RENEWAL & EXPANSION

E.ON renewed its 2,800 sq. m. office space in the City Gate project in Expozitiei area and also expanded with another 1,250 sq. m in a deal coordinated by C&W Echinox. The two towers dominate the square in front of the main Expo building in Bucharest, the area configuring as a new business hub in Bucharest.  In 2016, GTC successfully streamlined the ownership structure of the whole complex by buying out its minority partner, Bluehouse Capital and now owns 100% of the equity.

WEST GATE, 2,600 SQ.M, RENEWAL

BRD, one of the main players in the Romanian banking industry, renewed its office lease contract in West Gate, the business park owned by local developer Liviu Tudor.
West Gate is one of the largest business parks in Bucharest, developed by Genesis Development, in the West part of the city, on Precizei Blvd. West Gate has five buildings with 15,000 sq. m. rentable area per building of high quality Class A offices and ancillary accommodation.

CORESI BUSINESS PARK BRASOV, 2,300 SQ.M, PRE-LEASE

Cerner, the IT solutions provider for the health care industry, with its Romanian HQ based in Brasov pre-leased a 2,600 sq. m space in Coresi Business Park, in a deal brokered by C&W Echinox.
Coresi represents a complex regeneration scheme of former Tractorul industrial site, assumed by Immochan, on a size of over 100 hectares, comprising of a shopping mall, residential compound and a business park.

S-PARK/MY HIVE, 2,300 SQ.M, EXPANSION

ING expanded with another 2,300 sq. m. its office from my-Hive/ S-Park, the business park owned by Immofinanz, near Presei Libere Sq.

It comprises of 34,000 sq. m class A office space.

Immofinanz announced at the beginning of 2017 an investment plan of 1.8 million EUR to modernize five of its office properties and rebrand them under its corporate office brand, my-Hive.

Following this modernization, S-Park benefits of a spacious lobby with relaxing and socializing areas, as well as other numerous facilities.

TIMPURI NOI SQ, 2,123 SQ.M, RELOCATION

Fortuna, the company active on the online betting segment, relocated its office at Timpuri Noi Square, the project developed by Vastint in the Center-South area of Bucharest. The first phase of the project comprising two office buildings of 32,000 sq. m are 90% leased. Construction works for the second phase are underway, scheduled to be finalized by year end.

BUCHAREST BUSINESS PARK, 2.000 SQ. M, RENEWAL

C&W Echinox assisted CA Immo in the 2,000 sq.m renewal deal for Carpatcement at Bucharest Business Park.

The four buildings within the classically designed business park each offer some 27,000 sqm of office space on five levels, while being surrounded with greene areas.

The property is located in Presei Libere Sq.

GRAND OFFICES, 2,000 SQ.M, RENEWAL

Pharmaceutical company Teva renewed its office deal in Grand Offices, the business centre within JW Marriott Hotel from Bucharest.

The property has 11, 000 sq. m. office space distributed on 10 floors, with flexible floor plates from 24 sq. m.  up to 1.200 sq. m.

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