New sophisticated products on Bucharest real estate market: first food hall & lofts apartments on former historic properties
As Bucharest real estate market is rapidly expanding, investors start to develop new, sophisticated products to reach to a more and more demanding clientele. The initiative follows the European trend under which former industrial spaces are restored and re-converted into products appealing to today’s generations.
EUR 100 M mixed – use project for urban regeneration
One United Properties together with Auchan recently announced plans to invest 100 million EUR in a multifunctional development – One Floreasca City- at the junction of Floreasca and Mircea Eliade roads, downtown Bucharest. One Floreasca City involves three components, integrated in an open project: the former Ford factory will be restored and modernized, following to transform in a contemporary retail space, operated by Auchan Romania, a class A office building – One Tower- and three exclusive blocks of design apartments – One Mircea Eliade.
A new life for an abandoned building
The historic building dates back from 1935, when the American company Ford was manufacturing luxury cars in Bucharest. Under the new development, it will be carefully restored and transformed in a new product for the Romanian market: a food hall and a concept store, with different type of restaurants and services: cooking, gardening and bakery classes, events for kids and family. To respect the heritage of the property, the investor will use for the interior design vintage Ford models, some of them produced in the inter-war years at Bucharest.
Key trends in European food halls sector
The “food hall” concept first appeared in the US, as a mix of authentically prepared food and drink offers with a focus on collective dining and was rapidly adopted on different European markets. A recent Cushman& Wakefield “Food Halls of Europe” study estimated that approximately 100 food halls are either already open or are currently under construction in Europe’s major cities.
Cushman & Wakefield research suggests that the potential for growth is huge. At least 200 venues, totaling over 400,000 sq. m, are in the pipeline for delivery within the next decade. The study indicates some key trends for this sector:
- Consumer interest in food is a long-term trend – it’s here to stay
- Eating out is set to increase in many European countries
- Demand will come from tourists, office workers and local residents
- Diners are looking for unique experiences and plenty of choice
- Food offers will need to change regularly to remain current
- Top quality, ethically-sourced food with a clear provenance is non-negotiable
- Food Halls are likely to become integrated into wider developments, including shopping centres, public realm improvements and transport hubs
HANNER TRANSFORMS FORMER GRIVITA BREWERY
Under the same trend, Lithuanian-based developer Hanner has started earlier this year works on a historic plot near Basarab overpass: the former Grivita brewery plant. The development will bring a new product on the Romanian residential market: 31 unique lofts to be built on the structure of one of the former historic buildings.
In the same development, the company will build a 6,000 sq. m co-work space, targeting Romanian entrepreneurs.
WHAT’S NEXT: Buildings with potential
Bucharest still has potential historic properties suitable for redevelopment and conversion into modern, urban, hip products.
One such place is Moara lui Assan (Assan Mill), a large property on 4.7-hectare plot, ideally placed in a central position, close to Obor metro station.
Moara lui Assan has a reach history: it was built in 1835 and was Romania’s first steam mill. The plant functioned for almost 100 years and constantly benefited from industrial upgrades due to the owner’s futuristic leadership.
In 1948, when the communist regime came in place, the factory was nationalized. After 1990, the factory came again in private property but suffered severe degradation and destruction.