ROMANIA PROPERTY CLUB

Leading Sustainable and Innovative Real Estate Development in Romania

Iasi: “the tech darling” in North-East of Romania.
Iasi: “the tech darling” in North-East of Romania. 1200 800 ROMANIA PROPERTY CLUB

A strong university center, with two prestigious educational institutions – Alexandru Ioan Cuza University and Gheorghe Asachi Technical University – which together enroll around 40,000 students annually, Iasi has benefited from the well-trained workforce and attracted numerous investments from IT, BPO & SSC and auto industries. Subsequently, the local real estate market had a dynamic evolution, especially on the office & residential sectors. With a county population of 975,586, of which 391,024 are in Iasi, the annual GDP stands at 8 billion EUR.

With a well-educated workforce, Iasi attracted important employers, Amazon hosting here an important R&D center. The facility plays a major role in the city’s tech industry, employing skilled experts who are inventing new technologies in the fields of Cloud Computing, Information Security, Machine Learning and Data Analysis. Besides Amazon, Cognizant, Conduent, CRF Health, Almaviva, HCL, Basware, HCL, Basware, Accenture, E.ON, Harte Hanks are the major occupiers in the city. The office stock stands at 205,000 sqm, with a vacancy of 8% and a prime rent of 15 EUR, as indicates data from CBRE.

PALAS CAMPUS IASI

The modern retail stock reached 156,100 sqm, while the retail stock density (SQM/1,000 inhabitants) reached the level of 410. The city’s major retail schemes are Palas Mall (57,000 sqm) and Iulius Mall (25,000 sqm), both from the portfolio of Iulius Group and Mall Moldova (41,000 sqm) in the portfolio of Prime Kapital.

PALAS IASI

The logistic potential of Iasi is still untapped, considering the less developed infrastructure in the area and the city`s access to the Eastern routes of the country, which is less appealing for the institutional investors. Yet, several investors have started to show interest in the region in the recent years, most notably retailer Kaufland that works at its 3rd national logistic center in Miroslava.

LOGISTICS IASI
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Brasov: airport to open new real estate opportunities.
Brasov: airport to open new real estate opportunities. 1200 800 ROMANIA PROPERTY CLUB

Benefiting from an excellent location, in the center of Romania and only 180 km from Bucharest, Brasov attracted investments on all segments of real estate market: residential, offices, retail, logistics and hotels. The new airport expected to be inaugurated in 2023 will bring new business opportunities.  A tourist destination in the very heart of the country, Brasov attracted numerous production facilities.

The annual GDP of the county reached 8.3 billion EUR in 2021. Brasov attracted a wide range of high-tech providers and pharma companies.

The modern office stock in Brasov stands at 155,300 sqm with prime rent at 13 EUR and a vacancy rate of 13.7%, as shown by CBRE Romania. Brasov hosts a wide range of high-tech providers, IT&C and pharma companies as well. NTT Data, Sykes, IBM, Cerner, Accenture, Ipsos, Xperi, Jungheinrich, Hiperdia are some of the major office occupiers in Brasov. One of the major mixed-used projects inaugurated here in recent years was AFI Brasov, a shopping mall and a 15,500 sqm office building.

AFI BRASOV

CBRE indicates that the modern retail stock accounts for 175,800 sqm while the retail stock density (SQM/1,000 Inhabitants) is 607. The main retail developments in the city are Coresi Brasov (59,000 sqm) from the portfolio of Nhhod and AFI Palace Brasov (45.000 sqm) from the portfolio of AFI Europe.

CORESI BRASOV

In terms of logistics & industrial, the modern stock is 306,000 sqm with a vacancy rate of 0.5% and a prime rent of 3.85 EUR. The city attracted last year an important international investor. After an active presence in the West part of Romania, Belgian-based VGP chose Brasov for a new development. VGP Brasov is developed on 39-hectare plot of land, the total park being able to host up to 180,000 sqm GLA of class A logistic spaces.

VGP BRASOV

An important touristic destination, Brasov is expected to attract new investors on this sector. JAKOB SONNE Resort will be developed by Certion on a 2 hectare plot in Poiana Brasov and includes 214 apartments. The project wears the signature of the famous Austrian architect Franz Janz.

JAKOB BRASOV
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Constanta: untapped potential on office & logistic sectors.
Constanta: untapped potential on office & logistic sectors. 1200 800 ROMANIA PROPERTY CLUB

Located in the South-Eastern part of Romania, Constanta is a city holding tremendous development potential, due to its opening to the Black Sea and the Danube navigable channel, but which recently reached into the attention of large real estate developers. The modern office segment is not at all represented, the city holding no major office investment.

On the retail sector, the modern stock stands at 183,600 sqm, while the retail stock density (SQM/1,000 Inhabitants) stands at 586, according to CBRE. The city’s dominant retail projects are VIVO! Constanta (51,000 sqm), in the portfolio of Immofinanz and City Park (52,200 sqm) in the portfolio of NEPI Rockcastle.

VIVO! CONSTANTA

On the industrial & logistic sector, the first major modern project, Constanta Business Park, is developed on a plot of 100 hectares, near Constanta port, in partnership between Globalworth and Global Vision.

GLOBAL CONSTANTA

The residential sector attracted the largest share of investments from the entire real estate market. Besides the demand for new, modern units for the inhabitants of the city, the seaside area (Mamaia Navodari & Neptun-Olimp) also is seeing a notable development on the vacation homes sector.

BOREAL CONSTANTA

Some of the major investors include Impact, Gran Via, Certion, Maurer Imobiliare or One United Properties. Olimp resort in the South part of Romania’s coast is in full transformation, through investments of over 700 million euros until 2025. Romanian property developer Certion finalized here VOGH project. The 12-storey VOGH complex totals 173 apartments, out of which 85% have been sold, with a total value of 57.6 million euros.

VOGH CONSTANTA
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Tarom wants to “open” Brasov-Ghimbav International Airport
Tarom wants to “open” Brasov-Ghimbav International Airport 800 600 ROMANIA PROPERTY CLUB

15.11.2022

The first commercial aircraft that will land on the runway of the new airport in Brașov will be a Romanian one, belonging to TAROM”, said Mihăiță Ursu, general director CEO of TAROM, during the discussions held on Monday with Adrian Veștea, the president of the Brașov County Council, and with Alexandru Anghel, the general director of Brașov-Ghimbav International Airport.

The consolidated schedule of activities regarding the opening of the Braşov-Ghimbav International Airport, agreed by the Braşov County Council, together with ROMATSA and the Romanian Civil Aviation Authority, provides that the airport will be operational in mid-June next year.

At Monday’s meeting at the Tarom headquarters, it was agreed to identify sustainable options for TAROM to be able to operate flights between Bucharest and Brasov, which could be possible at the end of next year at the earliest.

“TAROM carefully follows the market and once again proves to be a reliable partner of Romanians and beyond. We can discuss the operation of flights between Bucharest and Brașov and return, this only if the infrastructure of the future airport will allow it, emphasizing the conditionality that between the airport and the center of Brașov there should be, on a regular basis, integrated passenger transport services, but also the availability of services of the rent-a-car type for future passengers”, added the CEO of TAROM.

With an investment of 40 million euros, Continental opens a megafactory in Timisoara
With an investment of 40 million euros, Continental opens a megafactory in Timisoara 770 512 ROMANIA PROPERTY CLUB

11.11.2022

Continental has completed the construction of the third expansion of the electronic components factory in Timișoara, with an investment of approximately 40 million euros.

With the new investment, the production area will increase by more than 7,000 square meters, which means an increase of more than 60% of the space (about 18,000 square meters will be reached for production). Parking spaces, a technical area, offices and a green area were also added.

“What used to mean horsepower under the hood is now user experience. To meet the growing demand of our customers, we must pursue the most developed digitization, standardization and automation possible – and that is exactly what we are doing with our new mega factories strategy”, said Lucian Mărgineanu, the director of the automotive production unit in Timișoara. “Continuing the implementation of Industry 4.0 technologies represents another leap into the future. The digitization of production processes, as well as the use of state-of-the-art equipment, means another step in guaranteeing the quality of our products and services. Therefore, in the electronic components factory in Timișoara, we are focusing on a sustainable future”, he added.

Continental makes more than 17 million products a year in Timișoara

The electronic components factory in Timișoara produces over 17 million products annually. Airbag control units, electronic parking systems, control units for various technologies such as air suspension, power steering, suspension adjustment and dynamic load stabilization, Head-Up and Head-Up Combiner display units and on-board instruments are manufactured here. Over time, the factory developed in the direction of Industry 4.0, integrating equipment and technologies such as the innovative storage system, the trigeneration system and others.

Over 17,500 employees in Romania

The technology company founded in 1871 provides safe, efficient, intelligent and affordable solutions for cars, machinery, traffic and transportation. Continental achieved a turnover of 33.8 billion euros in 2021 and currently has more than 190,000 employees in 58 countries and markets. On October 8, 2021, the company celebrated its 150th anniversary.

Between 1999 and 2021, Continental invested over 2 billion euros in its activities in Romania. All three fields of activity of the company are represented in Romania. Continental owns six production units and four engineering centers in Timișoara, Sibiu, Carei, Nădab and Iasi. The company has a tire distribution center in Bucharest. At the end of 2021, Continental had more than 17,500 employees, of which more than a third were engineers and computer scientists, and will continue to hire based on future projects.

CERTION completes VOGH Olimp project, less than two years after the works started
CERTION completes VOGH Olimp project, less than two years after the works started 1536 864 ROMANIA PROPERTY CLUB

08.11.2022

The real estate developer CERTION announces the completion of VOGH project, the first brand residences operated as a hotel in Olimp, less than two years after the start of the works. Thus, the company is preparing to start the reception process and then the delivery of the apartments to customers, with the project to be opened to guests in the first part of next year.

Located and developed in Olimp resort, which is in full transformation through investments of over 700 million euros until 2025, the 12-storey complex totals 173 apartments, out of which 85% have already been sold, with a total value of 57.6 million

“The successful completion of VOGH Olimp complex, despite the less favorable context of the last two years, confirms our ability to fulfill our promises to our investors and customers. For the entire team, delivery to the promised standard and on time was the main objective during this period,” said Cătălin Scripcaru, CEO of CERTION.

Among the main facilities available to guests and residents of VOGH Olimp is the spectacular infinity pool on the 11th floor overlooking the sea, unique on the Romanian coast. Added to that is the unique CIGAR BAR on the same floor plus a chic SPA area. The property benefits from hotel services specific to authentic brand residences.

The hotel custodian of VOGH Olimp is Loyal Paladin company, which will operate the largest alliance of branded residences in Romania, with a portfolio that will include approximately 2,000 accommodations until 2026.

The chain of brand residences operated by Loyal Paladin and developed by CERTION in the South of the Romanian coast, includes 5 projects, of which VOGH Olimp is the first completed. GALILEO Olimp Resort & Residences is also in an advanced stage of execution, whose construction was started at the end of 2021 and whose delivery is estimated in the second half of next year. The other three CERTION projects in the South of the Romanian coast, LAGO, SOLANTIS in Neptun and PHAROS in Olimp are in the authorization stage.

E.ON Business Services Cluj moves its headquarters to Record Park after one of the largest rental transactions outside Bucharest
E.ON Business Services Cluj moves its headquarters to Record Park after one of the largest rental transactions outside Bucharest 770 584 ROMANIA PROPERTY CLUB

03.11.2022

E.ON Business Services Cluj, the accounting services division of the German group E.ON, moves its offices to the Record Park project in Cluj-Napoca, where it has leased 3,500 square meters, one of the largest areas traded so far by a company outside Bucharest.

E.ON Business Services was established in Cluj-Napoca in 2012, with the aim of delivering financial and accounting services to internal clients of the E.ON Group worldwide. The company reached 600 employees and a turnover of over 20 million euros in 2021. The company’s offices are moved from Amera Tower, an office building developed by investors Ádám and Enikő Ambrus, on two consecutive floors in Record Park, project which offers a total of 15,000 square meters of office space and 236 apartments. E.ON has leased almost a quarter of Record Park Offices, a project delivered in 2020 that also houses the headquarters of MHP Consulting Romania, a subsidiary of Porsche AG, and that of the American insurance company MassMutual.

The Record Park Offices building is owned by AYA Properties Fund, a Belgian real estate investment fund. At the beginning of this year, Speedwell sold Record Park Offices in Cluj-Napoca to the Belgian investment fund AYA Properties Fund for 35 million euros. There is limited shareholder overlap between Speedwell and AYA Properties Fund.

Last year, Speedwell announced that it had invested around 90 million euros on the Romanian market, the equivalent of some projects with a value of around 400 million euros, and that it aims to place an additional capital of 90 million euros with the aim of doubling the portfolio in the next 4 years. The company’s expansion plans are secured by an investment fund launched in 2019 and in which several wealthy Belgian families have investments.

Top cities that attracted the most office tenants in the third quarter of 2022
Top cities that attracted the most office tenants in the third quarter of 2022 420 250 ROMANIA PROPERTY CLUB

03.11.2022

Across the country, in the last three months, companies have leased modern offices with a total area of 108,747 sqm, both new offices and contract extensions, up 9% from the same quarter of 2021, according to an analysis by Fortim Trusted Advisors, an alliance member of the BNP Paribas Real Estate.

At the country level, large cities have an increasing share in the total number of office rentals, to the detriment of the capital. In Bucharest, contracts were rented, pre-rented and extended for a total office area of about 75,700 sqm, while in Iasi of 11,355 sqm, in Cluj-Napoca of 9,293 sqm and in Timisoara of 6,415 sqm.

“Office segments in cities such as Cluj-Napoca, Iasi, Timisoara are developing, but more cautiously. Investors only move from one stage of the projects to another after making sure that there is a current demand. Until now, regional markets have attracted more and more large demand, from multinational companies, which have seen an opportunity in the well-trained workforce, in regional universities and which are now expanding easily from one city to another, depending on the availability of quality office spaces”, says Nicolae Ciobanu, Managing Partner – Head of Advisory Fortim Trusted Advisors, an alliance member of the BNP Paribas Real Estate.

Among the large office tenants who have chosen another city, besides Bucharest, there are also Accenture (in Cluj-Napoca), Linde Global Services, Hella (in Iasi), Tech Mahindra (in Timisoara), Expleo (Iasi).

In the third quarter of 2022, Accenture rented an office space in the Hexagon Offices building in Cluj-Napoca, Linde Global Services pre-leased in the UBC 0 building, from the Iulius Town Timisoara project, and Preh Romania, Hella and Expleo pre-leased in the Palas Campus project.

The new office buildings in the primary and secondary cities of Cluj-Napoca, Iasi, Timisoara, Brasov and Craiova have the same high-quality standards A and the same types of facilities for employees (retail areas, services, common spaces for socialization, green certifications), as those in Bucharest.

In addition, in primary and secondary cities, other premium office projects are in development, which will ensure constant deliveries of new offices over the next two to three years.

German company Infineon Technologies AG opened an R&D center in IULIUS Group’s Palas Iasi complex
German company Infineon Technologies AG opened an R&D center in IULIUS Group’s Palas Iasi complex 420 250 ROMANIA PROPERTY CLUB

12.10.2022

German semiconductor manufacturer Infineon Technologies AG is growing its presence in Romania by opening an office in Iași, located in the Palas mixed-use complex, an investment by IULIUS Group. The new research and development center will initially occupy a 600 sqm area, and will expand in the future. Infineon engineers working here create semiconductor solutions for the automotive industry.

The company currently operates an R&D center in Bucharest and is expanding its business to Iași, by opening an office in the United Business Center 3 office building in the Palas mixed-use complex.

“We are glad that Infineon Technologies decided to join the business community in Palas Iași, an established regional center for major tech companies that create essential solutions for a better life. Iași has grown a lot in the last 10 years and is on the radar of big companies in the most dynamic sectors of the economy, being an attractive city in terms of investments, competing not only with Bucharest, Cluj-Napoca and Timișoara, but also with other similar European cities,” said Ionuț Pavel, Office buildings Manager Palas Iași & Palas Campus.

The new center will accommodate specialists in the development of semiconductor solutions for safer, greener and smarter cars. The office has an initial area of 600 sqm and the company plans to expand in the future.

Infineon Technologies entered the local market in 2005, when it opened a research and development (R&D) center in Bucharest and has grown to over 500 engineers in Romania.

Infineon Technologies AG is a world leader in semiconductor solutions that make life easier, safer and greener. Microelectronics from Infineon are the key to a better future. With around 50,280 employees worldwide, Infineon generated revenue of about €11.1 billion in the 2021 fiscal year (ending 30 September 2021).

The United Business Center premium office space network developed by IULIUS Group includes 14 class A office buildings, with a total area upwards of 182,000 sqm, located in the urban regeneration projects in Iași (7 buildings – 75,600 sqm), Timișoara (4 buildings – 80,000 sqm) and Cluj-Napoca (3 buildings -26,200 sqm). All the buildings are designed, built and operated in an environmentally friendly and people friendly manner, so they are all either certified or pending certification in line with the LEED international sustainability standard developed by the U.S. Green Building Council.

In Iași, the business community formed in the Palas complex has grown steadily, attracted by the young and talented workforce generated by the university center and the modern office infrastructure provided by IULIUS. The interest of the business environment in the Group’s projects was the cornerstone for developing the new Palas Campus project nearby the Palas mixed-use complex. Palas Campus is the largest A class office building in Romania, with a gross leasable area upwards of 60,000 sqm; it is set to open early next year and is already fully leased.

AFI Europe aims to achieve zero carbon emissions for all its projects by 2025
AFI Europe aims to achieve zero carbon emissions for all its projects by 2025 420 250 ROMANIA PROPERTY CLUB

06.10.2022

AFI Europe announces a series of plans aimed at achieving ambitious sustainability targets for all its projects, a significant reduction of carbon emissions, the well-being and safety of their occupants, as well as transforming real estate projects into smart buildings with a high degree of access to technology.

According to the company’s sustainability strategy, one of the most important objectives is to obtain, by 2025, the “LEED Zero Carbon” certification for all ongoing office projects, and also for all future AFI Europe’s projects targeted to be developed in the future in Romania. Therefore, AFI Europe Romania enrolled in the process of obtaining “LEED Zero Carbon” certification, process targeted to be finalized within the next 2 years.

The company is assisted by Colliers as a consultant and shall primarily target all operational buildings in AFI Europe Romania’s portfolio. Based on an initial process of evaluation, a set of measures shall be issued and implemented such as: increasing energy efficiency (by BMS optimization, LED lighting and controls, improvement of insulation and other technical improvements), using green energy (100% electricity from renewable sources) and plan improvements to diminish carbon emissions from fossil fuels.

“AFI Europe is taking the impact of buildings on the environment to the next level, by committing to LEED Zero Carbon certification for its entire office portfolio. Obtaining carbon neutrality by 2050 is a target of European Union and AFI Europe Romania acts as a pioneer on the Romanian market by making these early improvements. We are excited that our ESG Strategic Advisory team will consult AFI during the process of LEED Zero Carbon certification. This program has a unique ability to verify this new level of milestone in sustainability by tackling climate change and encouraging enhanced progress on the triple bottom line of “people, planet and profit”, mentioned Oana Stamatin, ESG Chief Officer – CEE & Romania, Colliers.

On the long run, AFI Europe’s strategy involves a carbon-free approach for all ongoing office projects and that will be developed in Romania, and its commitment to a sustainable development anticipates and moves several years ahead of the objectives set at the European level.

7 office projects certified as sustainable projects

To date, AFI Europe has obtained LEED and BREEAM green certifications for all 7 office projects existing in its portfolio: AFI Park, AFI Tech Park, AFI Victoriei Plaza, AFI Park Floreasca, AFI Lakeview, AFI Park Timișoara and AFI Park Brașov, and also for AFI Brașov shopping center and AFI City Bucuresti Noi residential compound which received the certification “Green Homes”. AFI Cotroceni and AFI Ploiești shopping centers are under process of obtaining the green certification.

With regards to the well-being and safety measures for buildings occupants, during 2021 the company has invested in Romania approximately 1 million EUR in the latest Bi-polar ionization air purification system, which has been installed in all office buildings and shopping centers from AFI’s portfolio. To provide comfort, well-being and productivity to all projects occupants and visitors, the quality of the indoor environment is ensured by improved ventilation and increased intake of fresh air, reduction of air pollutants from building materials, adequate thermal comfort or access to natural light.

At the beginning of 2022, the company announced obtaining the Well Health & Safety certification for its entire office portfolio in Romania. This covers five key areas, including cleaning procedures, air quality management and health services. “We are constantly concerned with providing a healthy and safe working environment and community to all tenants present in our buildings, using the most modern systems available today. From our point of view, well-being and health are invariably linked to the impact we have on nature. This is also the reason why all our actions in recent years converge in the direction of sustainability, both in the building’s construction phase, by purchasing sustainable materials and reducing the carbon footprint related to the construction process, as well as in terms of operation and use of buildings. We are investing significantly in the latest solutions for reducing water and energy consumption, using renewable resources, selective waste collection, as well as encouraging sustainable transportation for the tenants by using bicycles and electric cars”, mentioned Emma Toma – Head of Office Division, AFI Europe Romania.

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