ROMANIA PROPERTY CLUB

Leading Sustainable and Innovative Real Estate Development in Romania
Palas Campus – photo 2

Iasi office tenants plan to phase out remote work
Iasi office tenants plan to phase out remote work 2048 1028 ROMANIA PROPERTY CLUB
Palas Campus – photo 2

Iasi registered a slower office market dynamic during the first half of 2024, following a strong 2023. While no new leases were officially registered in H1, the third quarter revitalized the perspectives for the end of the year. Levi9 opened its office in Silk District, whereas Coca-Cola announced a regional office at the same location. Regus, the worldwide leader in serviced offices, signed a partnership to offer flexible space to companies looking to test the local market and ramp up hiring before committing to longer leases. Despite the slower take-up and the 20% vacancy rate, prime rent jumped to 17 EUR/sq m, one of the highest asking rents for a regional city.

Following Iulius Group’s successful leasing of the newly delivered Palas Campus and the subsequent new entries (Expleo), expansions (BRD Societe Generale Service Center), and renewals (Conduent), one of the most important events is the delivery of the first phase of Silk District. This mixed-use development kick-started the gentrification process of the former industrial platforms south of Iasi. Prime Kapital recently announced the start of the Phase III development, outlining the huge success of the residential component. The developer’s courage to create a hub led to other initiatives in residential and commercial in the immediate vicinity, thus potentially transforming the entire area into a prime urban destination. The office component of Silk District added 23,000 sq m to the total stock, with the potential to build up to 104,000 sq m of Class A workplace infrastructure.

Some developers, such as Evergent Investments, postponed their 100 million EUR office, residential, and commercial mixed-use investment to assess macro and geopolitical risks. As Iasi is closer to the Ukrainian border than other regional leaders, it is natural that some investors have a different risk appetite in comparison to the developers with strong experience in the local market.

Should the local talent pool continue to upskill, the local office market shall grow as well. The rise in wages makes the city less appealing to BPO/SSC operators, presently considering tertiary markets to meet their profitability margin. Recent initiatives, such as Launch’s debate over the transition to a product market, are much welcomed.

“The office portfolio based in Iaşi maintained a positive dynamic as a result of employees returning to the office. This year, we had 10 major clients sign lease renewals for terms up to 10 years and areas adding up to more than 5, 000 square meters. Besides these, we have also had new leasing transactions for another 6,000 square meters, including a new coworking space in Iaşi, as well as with international automotive, financial services and marketing companies. The market is expected to stabilize in the coming year, as many of the companies operating in United Business Center Palas and Palas Campus plan to phase out remote work, which means a focus on refurbishing their current premises to address both the changes in organizational culture, and the need for direct team-based collaboration.”

Ionut Pavel Office Buildings Manager Palas Iasi & Palas Campus
Ionuţ Pavel, Office Buildings Manager United Business Center Palas
Iasi: Dynamic industrial & logistics market

Iasi: Dynamic industrial & logistics market
Iasi: Dynamic industrial & logistics market 2560 1707 ROMANIA PROPERTY CLUB
Iasi: Dynamic industrial & logistics market

While the stock in the broader North East region represents merely 3% of the total modern Class A industrial & logistics infrastructure, during the first half of the year, the total new deliveries represented 16% of the pipeline. This is in anticipation of the opportunities brought by the A7 highway and a reflection of a vibrant local business environment.

Production facilities dominated the market, with local, national, and international champions placing bets on the value-add of the region. Catena, All Green, Crescento Packaging, and Dalex Termo Prod are building six new warehouses in Miroslava Industrial Park. German company Gergen Kipper und Fahrzeugbau is adding new facilities in the same park. Belgian producer IGW is building a new gearbox factory in Tomesti. One of the most important investments is a new professional cleaning products factory, built by local champion Misavan in partnership with Quimxel Spania. The 10 million EUR investment shall create 100 new jobs. An interesting project is Chimcomplex’s proposal to invest 2.2 billion EUR in a new biochemistry compound. The company filed a proposal to take over the city’s heating system, as a by-product of the cogeneration plant. Thus, the company pledges to contribute to the country’s reindustrialization policy.

Iasi: Dynamic industrial & logistics market – photo 2

Antibiotice Iaşi, the largest producer of medicines with Romanian capital, has a total investment plan of 850 million RON between 2023 and 2030, to reach a turnover of 1 billion RON at the end of this period. The company has already started investing in the industrial platform in Iasi, opened a new production unit for creams, gels, put into operation a power plant with photovoltaic panels, and the manufacturer’s representatives are still looking for new growth opportunities. The plan is already established, but depending on what comes new, the company’s strategy adapts. “The emphasis will be on the modernization of existing manufacturing sites, the development of new production flows as well as investments in research. In addition, we plan investments to strengthen our production infrastructure, modernize the water and energy management systems, strengthen energy independence, as well as improve the logistics capacity of the platform”, said Ioan Nani, general director of Antibiotice Iaşi. The funding sources are multiple and include both state aid from the Ministry of Finance, a loan from the European Investment Bank (EIB), as well as own funding sources

On the professional developer’s side, Oresa Industra and ELI Parks are the funds that placed their trust on the Eastern front. ELI Parks secured a landmark lease of 12,000 sq m with Dr Max, the leading pharmaceutical chain. Oresa Industra is looking to extend its Iasi park by 40,000 sq m. Subject to demand, other top industrial & logistics investors might develop a presence in the East region once A7 is functional, starting in 2026.

Meanwhile, the local authorities are setting up new industrial parks to support the local production economy. The County Council allocated funds for new industrial parks in Letcani, Pascani, and Holboca.

Infrastructure

Moldova on the investment radar, due to infrastructure progress
Moldova on the investment radar, due to infrastructure progress 1024 768 ROMANIA PROPERTY CLUB
Infrastructure

The region of Moldova, guided by Iasi, will have a series of opportunities in the coming years, from infrastructure projects for the A7 and A8 highways, to the development of new hubs.

The North-Eastern region of Romania continues its development, investors are targeting locations for production facilities while major infrastructure developments will easily connect the region with the rest of the country.

The A7 highway is in the advanced stages of execution, with an expectation for handover in 2025 and 2026 for the portion leading to Siret. A7 will connect the entire Modova region with Bucharest, quite literally paving the way toward new production and logistics facilities.

Considering the region’s high unemployment rate and low salaries, new investments will markedly change the standard of living for the people in Moldova.

However, Iasi is vocal about prioritizing A8, the highway that connects the city to the western market routes across the Carpathian mountains. Works started towards the west side of the highway (Targu Mures end), with various lots under planning, bidding, or execution. Another important point of A8 is the bridge across the Prut river, at Ungheni, which will enhance the economic, logistics, and cultural exchanges with Republica Moldova, a country timidly making a move towards European integration.

However, considering the complexity and cost of crossing the mountains, the final delivery of A8 might be pushed towards the end of the decade.

Iasi hotel market still underdeveloped

Iasi hotel market still underdeveloped
Iasi hotel market still underdeveloped 2560 1920 ROMANIA PROPERTY CLUB
Iasi hotel market still underdeveloped

Iasi remains one of the most underdeveloped hotel markets in Romania, with branded hotels representing just 12% of total rooms capacity.

In 2023 Iasi airport represented the third busiest airport from Romanian following Bucharest and Cluj-Napoca with an annual traffic of 2,3 million passengers. The trend maintained in the first semester of 2024, when data from National Statistic Institute shows a total traffic of 1,056,000 passengers.  The airport has 4 terminals, with passenger operations taking place in the main terminal T4 (which is used for all domestic and Schengen flights) as well as T3 (used for non-Schengen flights). Terminal T4 was opened in March 2024, following an investment of around 100 million EUR. The old T1 terminal now functions as office, administrative and storage space, while the former T2 terminal is to be converted into a cargo terminal.

The arrivals in “Rooms and apartments for rent” from Iasi City was relatively stable throughout the last 3 years.  Although for 2023 it was a decrease in overnights of 12% compared to 2022, in the first 9 months of 2024 there is a growth of 16.0% compared to 2023.

The average length of stay in hotels and apartments for rent is in the range of 1.5-1-6 nights. However, for apartments we have noticed resilience as opposed to hotels where there is a decrease y-o-y in the last 6 years (i.e.: 1.73 nights in 2018 and 1.67 nights in 2024).

There is no branded hotel in the pipeline, with a small offer of only 193 rooms, in two hotels, 3* classified. There are no 4* or 5* branded hotels in Iasi.

In terms of tourist arrivals in hotels, Iasi city registered a positive increase of 1.5% in 2023 as compared to 2022 but a negative growth of almost 1% for overnights. The negative trend from 2023 continued in 2024 and both indicators are below 2023 with around 12%.

Mircea Draghici, Managing Partner, Est Hospitality:

“We have noticed a shift in demand from hotel rooms to apartments for rent in the market. This is a trend that we see in other cities as well in the last two years. It also shows that Iasi city has a big growth potential for full-service hotels (ie 4-star).”

Moldova magnet-city

Moldova magnet-city
Moldova magnet-city 1597 946 ROMANIA PROPERTY CLUB
Moldova magnet-city

Numerous investments in education, water & sewage, local transportation, road, and healthcare infrastructure are redrawing the city lines and increasing the comfort level for its 275,000 population.

The main energy distributor, Delgaz, is performing grid upgrades; the water & sewage company, ApaVital, is upgrading and extending its network in Iasi and the metro area, bringing XXI facilities to every inhabitant. The City Hall takes advantage of NRRP funds to upgrade and expand the school network (20+ million EUR budget). While projects such as the East Motorway are still under review, important makeovers of major roads and junctions shall improve traffic and accessibility, paving the way for new neighborhood development. The “Sf Maria” Children’s Hospital shall benefit from a 6 million EUR NRRP investment in equipment and materials that will reduce in-hospital infections; on top, 9 million EUR are allocated for other projects, including extending the Emergency Unit. Other medical units stand to receive 30 million EUR EU funds for upgrades as well. The most-awaited development is the Regional Hospital, a 700 million EUR investment. The bidding process is underway, with a reception term established for 2027. On the General Mayor’s priority list is the 110 million EUR Bahlui stadium, for which a concept revision is implemented.

One of the most meaningful public investments is the 70 million EUR in the UMF campus, half of which is backed by EIB. This is the first external loan contracted by UMF, targeting student housing upgrades, building new campus facilities, and developing the Maternity-Infant R&D center.  Iasi is a strong leader in Romania’s medical education landscape, with a spillover effect into the public-private sector. Antibiotice Iasi shall execute a 170 million EUR investment plan by 2030, extending the critical medicine production list and a new R&D center. Only Romania and Germany filed a project for the EU STEP (Strategic Technologies for Europe Platform) program, which supports the production of critical medicine for Europeans. Along with investments in digitalization, production sites, and equipment, Antibiotice plans to increase its headcount by 200 and double the median salary, up to 2,500 EUR net, to retain talent in Romania.

However, the most exciting and most awaited projects by the people of Iasi are the A7 and A8 highways due to their potential to boost the prosperity level of the region.

Other meaningful investments in Iasi represent the new Opera building and the refurbishment of the Filarmonica. The Ministry of Culture recently announced it secured the land for the new 80 million EUR Opera house, whereas a 10 million EUR upgrade of the Filarmonica property is underway. Important entertainment operators try to capture value from the rise of Iasi. Beraria H plans a 40 million EUR urban regeneration project, featuring commercial and leisure community spaces. A local entrepreneur is investing 10 million EUR in an edutainment facility that will comprise karting, drifting, and children’s experiential learning features. Destiny Park, an edutainment provider with a strong presence in Bucharest, announced they’re surveying Iasi for a potential expansion.

The outstanding real estate development in the past decade in Iasi quickly attracted multinational companies, which trained and nurtured local talent. Thus, it was natural that a local champion emerged from the youth labor pool. Digitail raised 10 million EUR from Atomico, byFounders, Gradient Ventures (Google), and Partech. Presently, the city is a great outsourcing destination, however, the local talent is actively trying to build a strategy toward the transition to a product-oriented IT industry.

Overall, the strategic steps Iasi takes in improving the public infrastructure, extending its role in the provision of critical medicine, building highways, and transitioning to more value-added IT services shall ensure a strong and sustainable economy that needs to be served by real estate development.

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Urbano Shopping & Living – The biggest Commercial Park in Transylvania
Urbano Shopping & Living – The biggest Commercial Park in Transylvania 2560 1743 ROMANIA PROPERTY CLUB

A new Integrated Retail Destination & Family Entertainment Center in Cluj Metropolitan Area

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Urbano Group is investing 100 million EUR in a new major commercial real estate development, on a 25 hectares land in the heart of the Cluj Metropolitan Area.

The first phase of the Urbano Shopping & Living project (2024 – 2025) will integrate over 30 retailers and service providers, including a commercial galleria, a do-it-yourself retailer, a cash & carry hypermarket, a supermarket retailer and a unique fast food and drive-in hub.

The second phase (2026 – 2028) will bring in a unique concept for the Romanian market: an attractive mix of retail, community services and Family Entertainment Center offering various cultural, edutainment and leisure experiences, an indoor and outdoor sports area, office spaces, medical services, hospitality and events services and other community-oriented functions.

The developer targets BREEAM certification with a focus on green and sustainable solutions: energy efficiency and renewable energy production, green mobility, connection to the local transport system, bike tracks, environmentally friendly landscaping, eco-friendly water & waste management.

Urbano Shopping & Living is in the phase of design details, with the construction site expected to start in November 2024. The project will generate a major positive impact in the proximity area for the residents of Florești and Gilău and the west of the Cluj Metropolitan Area.

With direct access to DN1/E60 Cluj-Napoca – Oradea national road, the commercial park can also be accessed by metropolitan bus, with a dedicated bus station located on the premises. At 1.2 km there is the Gilău junction of the A3 Transylvania Motorway.

In the future, the project will benefit from direct access to Cluj Metropolitan Ring TR35 (2029), as well as to the Metropolitan Bike Track along the Someș River (2028).

TIMEFRAME

Phase 1: 2024 – 2025

Phase 2: 2026 – 2028

DEVELOPER & AGENT

Urbano Group acts as a major development integrator of premium properties projects in the following areas: logistic-industrial, residential, office and commercial. The group has been active since 2016 in the city of Cluj-Napoca and the Cluj Metropolitan region in Transylvania, Romania, focusing on bringing positive change to the communities and on the revitalization of urban and peri-urban areas.

Nhood Romania has been selected as the exclusive agent by the developer due to its expertise in areas such as the operation and leasing of projects with mixed functions, community activation and the development of sustainable projects with a wide range of functions and services.

Rivus Cluj Napoca Iulius 08

Cluj – The hottest retail hub in Romania
Cluj – The hottest retail hub in Romania 2560 1600 ROMANIA PROPERTY CLUB
Rivus Cluj Napoca Iulius 08

RIVUS – IULIUS, Cluj

With approximately 250,000 sqm under development and 75,000 sq m more in the pipeline, Cluj represents the most exciting retail hub on the Romanian market.

The most cityscape-changing investment is run by Iulius Group, one of the existing investors in shopping centers in the city. Rivus is a mixed-use development covering 14 ha that will bring 145,000 sq m of commercial space to Cluj, out of which 120,000 sq m are dedicated to a state-of-the-art shopping center. The project recently received a long-awaited Zonal Urban Planning permit, one of the key steps in securing a building permit; works will most likely break ground in 2025. The entire urban regeneration project will serve sophisticated shopping needs and will be the go-to destination for the community, due to its lush gardens and cultural and leisure areas. Moreover, the developer will create a promenade area to Somesul Mic River, which is currently inaccessible and unappealing, and enhance the urban mobility facilities. The concept design is signed by the Dutch UNStudio, renowned for landmark projects across the world.

Iulius is well acquainted with Cluj retail market, as Iulius Mall in Gheorgheni neighborhood has a history of 17 years and an offer which exceeds 240 stores, an entertaining food court, an Auchan hypermarket, and a 10-room movie theatre operated by Cinema City.

Another important, well-established player in Cluj is CPI Property Group, which owns VIVO! shopping center, the first modern mall in the city, serving both Cluj & Floresti, a 50,000-people village, part of the metropolitan area. The group has an extensive modernization process underway within the portfolio aimed at reconstruction, renovation, equipment and installation changes, but also a refresh of the tenant mix. Burger King has already inaugurated a new unit, while Primark will open next year.

Urbano Group is developing a second large-scale project that shall serve the needs of c.a. 80,000 people in immediate proximity and an extended catchment area of c.a. 400,000. The new retail park spanning 130,000 sq m gross built area is developed on 27 ha in two phases in Luna de Sus, a community part of the fast-growing Floresti metro area. One of the advantages of the project is the proximity to the A3 highway and DN1, which will represent a great entry point for county-wide shoppers. The developers recently appointed Nhood as an exclusive agent, one of the companies with an outstanding track record in urban regeneration (Coresi Brasov).

For each new apartment listed for rent there are three potential tenants. Marasti, Center, Manastur and Zorilor are the most wanted areas for rented apartments.

Other local and international developers are looking to shape the city as well. Local investor Hexagon Group is pending approval of a mixed-use development that features a commercial gallery. Prime Kapital is also pending for a PUZ for the former Cesarom platform, where the current master planning features a 75,000 sqm shopping center.

On the capital markets side, BT Asset Management recently bought a 9,000 sq m retail park, FunShop Turda. This is one of the first investments of the 2022 born fund with 32 million EUR assets under management.

The excitement for Cluj is understandable, as the city has been incredibly dynamic, attracting international companies and building national and international champions. Due to its appeal to the younger generation, the population of Cluj will likely increase, and the planned shopping schemes shall serve the city well for decades. Cluj registers the second-highest prime shopping center rents – 65EUR/sq m, after Bucharest (85 EUR/sq m). The prime yield for modern retail is 7.6%, which is a balanced take on the sustainability of the sector in the region.

Sorin Guttman Project Manager

SORIN GUTTMAN, Manager RIVUS

“Already at this stage, RIVUS reaches 50% leased area for the retail area, which will have 145,000 sqm. Far from being just a mall, RIVUS will bring many firsts to the region, through a concept that started from the community’s expectations and needs: the first performing arts center and the first performance hall integrated into a real estate project; the first Jumbo in Cluj – 8,000 sqm; entertainment centers for all ages, including the Hype Arena concept; the latest cinema technologies, for the first time in the region; fresh market; the largest bookstore in the country – 2,500 square meters; the most varied dining mix in the region, with over 30 restaurants and cafes; DIY anchor etc. In total, more than 400 brands, services and retail concepts, with many firsts in the fashion area. All this is supported by a mixed concept that has at its center a park of over 5.2 hectares, with the role of connection to the Someș river, accessible to the public through the urban reconversion project, which gives back to the city 14 hectares of former industrial platform in the form a lifestyle center.”

Cluj-Napoca, the most expensive residential market in Romania

Cluj-Napoca, the most expensive residential market in Romania
Cluj-Napoca, the most expensive residential market in Romania 2560 1707 ROMANIA PROPERTY CLUB

Residential analysis with the support of imobiliare.ro

Cluj-Napoca, the most expensive residential market in Romania

One of the most dynamic regions in the country, Cluj is a leader for the broader Center-West area. Its youthful and entrepreneurial vibe appeals to more than 679,000 inhabitants, out of which 287,0000 live in Cluj-Napoca, the county’s capital.

A beacon of entrepreneurial success among Romanian regional leaders, Cluj’s strong economic development is fuelled by the second-largest population of students -72,000. All these figures translate in a powerful demand for modern housing units. The strong demand, without a similar offer, leads to high price increases.

According to imobiliare.ro, prices for new units reached in September 3,230 EUR/sqm, 75% higher than the medium prices at national level. As compared to September 2023, the increase is 20.6%.

Areas with the biggest offer include: Manastur, Marasti and Gruia. Each new apartment put for sale has two potential buyers. The biggest demand is in the Center & Zorilor areas.

The medium rents for new residential units reached in September 690 EUR/month, a 6% increase, compared to the same period from the previous year.

For each new apartment listed for rent there are three potential tenants. Marasti, Center, Manastur and Zorilor are the most wanted areas for rented apartments.

Gobant Office Designed By Cos

Cluj: Local office market revival
Cluj: Local office market revival 2560 1709 ROMANIA PROPERTY CLUB
Gobant Office Designed By Cos

Office Design by COS for Globant, Cluj

While the modern Class A office stock remained constant at 340,000 sq m, Cluj registered the most dynamic leasing market outside Bucharest in 2024. Close to 30,000 sq m were let in Cluj, a significant uptick compared to the past two years.

The city dubbed “Silicon Valley” of Romania attracted new employers in the IT&C sector, such as Yopeso and HN Services. Companies with a major presence, such as Betfair and Endava, chose to extend their leases, leading to significant renewals of 8,500, and 4,500 sqm, respectively. New entrants in Romania, such as Copeland, acknowledged Cluj’s leading role in nurturing a qualitative talent pool by opening a multi-disciplinary service center that will be a home for more than 200 professionals. Banca Transilvania, the leading financial institution in Romania, headquartered in Cluj extended its presence by renting nearly 4,000 sq m.

Thus, rents registered a slight uptick, ranging between 14 to 16 EUR/sqm. The vacancy rate is single-digit, lower than in Bucharest and other leading regional cities. The prime yield stands at 8.75%, reflecting the recent year’s volatility and increase in interest rates.

In the medium term, more than 70,000 sqm are expected on the market. In addition to the extension of Liberty Business & Technology Park, one of the most expected new deliveries is Iulius’s Group’s new 15,000 sq m development on the former Carbochim platform. Part of a landmark mixed-use development, the new office building will allow companies to benefit from the premium environment created by integrating an ultra-modern shopping destination, lush green areas, and leisure facilities. Iulius has already put its toll on Cluj, following the same transformative urban regeneration strategy applied in Iasi and Timisoara. The office component, under the United Business Center umbrella, features three separate projects built in 2008, 2014, and 2018, totaling 27,000 sqm. Companies that chose to work in UBC buildings include Endava, Genpact, Office Depot, and Analog Devices.

The Office is one of the emblematic business parks in ultra-central Cluj-Napoca. The 60,000 sqm of office and retail were built by Mulberry Development and NEPI Rockcastle custom to Cluj-Napoca market needs.

As this was an accelerated growth market, the business park was constructed in three phases between 2013 and 2017 with the end goal of delivering a 9,000 sq m united floor plate, that could host up to 1,000 employees on a single level. As the metro project is years in the making, The Office concept features 1,100 car parking spaces and up to 400 bicycle/motorbike racks.

The modern amenities, 200 seats capacity conference center, and visually appealing landscaping serve community building purposes for companies such as Deloitte, Yonder, 3Pillar Global, Bombardier, Betfair, Steelcase, National Instruments and Bosch. In 2019, Paval Holding added the landmark property to their portfolio for c.a. 130 million EUR.

Hexagon Offices is a Class A business complex delivered in mid-2019 by a joint venture between local entrepreneurs who managed to secure top-tier tenants such as Cognizant and Accenture. It exchanged hands for 32 million EUR at the end of 2019, being taken over by a Romanian family business.

Another considerable mixed-use development is Prime Kapital’s 17 ha urban regeneration project on the former Cesarom platform. In addition to a medium-sized shopping center and a much-needed residential component, the project should bring 49,000 sqm of offices to market. The master planning and permitting process is still under development, with a soon-to-be-announced timeline.

Silviu Babtan

SILVIU BĂBȚAN, Office Buildings Manager IULIUS Cluj

“2024 was an exciting year for our office component in Cluj-Napoca, as a consequence of a new stage of expansion for companies. We recorded one of the most significant transactions on the office market in Romania, the largest outside the Capital, to our knowledge, representing a new partnership for 8,500 sqm, with a single company, in the IT field. Also, in 2024 we signed new contracts and extensions for an area of ​​20,000 sqm, out of a total of 27,000 sqm totaling the three office buildings developed, in Cluj-Napoca, by IULIUS under the national United Business Center brand. Thus, approximately 50% of the transactions registered this year, in Cluj-Napoca, were for our office buildings. We are at 100% occupancy, but we are happy with the interest in new partnerships, in the context of the development of 15,000 sqm of premium office spaces, in the RIVUS mixed-use urban reconversion project, for which the IULIUS company announced the approval of the Zonal Urban Plan of to the Cluj-Napoca Local Council.”

Trc Park Cluj

Cluj: Strong activity in the industrial sector
Cluj: Strong activity in the industrial sector 2560 1920 ROMANIA PROPERTY CLUB
Trc Park Cluj

The Cluj modern Class A Industrial & Logistics stock remained stable at 420,000 sq m, registering a slight decrease in the vacancy rate to 4.3%, representing circa 18,000 sq m available.

Rents increased to 4.65 EUR/sq m, close to the prime asking rent in Bucharest – Ilfov, while the pipeline of buildings under construction is 17,000 sq m. The total leasing activity slowed down in the past twelve months.

The 7,800 sq m lease Cargo-partner signed in CTPark Cluj is the most meaningful transaction of 2024.

Transilvania Constructii is an active local player. In Cluj the Romanian developer owns a portfolio of three parks, totaling 161,000 sqm:  TRC Park Cluj, located in Tetarom III, TRC Park Transylvania, located east of the city, with access to E576 and TRC Park Cluj Airport. At the airport facility, the owner plans a refurbishment process, transforming the building’s visual impact while maintaining functional excellence.

There is new, strong active interest in securing production and logistics facilities in Cluj.

Lasselsberger is looking to invest nearly 200 million EUR in a new production facility in Sandulesti, for which it requested state aid in exchange for creating jobs.

German-based Stada recently inaugurated a new production facility in Turda, following a 70 million EUR investment, of which 20 represent state aid. It is the largest greenfield investment on the Romanian pharma market in the last two decades. The factory has a production capacity of 160 million boxes of medicines annually and will have over 300 employees in total. About 20% of the production will remain in Romania, while 80% will be exported to international markets.

Terapia, a SunPharma portfolio company, started construction works to upgrade its landmark facilities in Cluj and add sustainability features.

Knauf is working on a 76 million EUR investment in Huedin: a new factory with an annual capacity of 30 million sqm, which will produce the entire range of plasterboard boards, from standard to special ones for protection against fire, moisture resistance and superior sound insulation performance. The factory in Huedin is designed to meet the most demanding standards regarding energy efficiency and environmental impact, being equipped with the most innovative technology in the field of ovens and dryers.

The market is characterized by a strong presence of local developers and public industrial parks. Local companies recently applied for permits to build up to 100,000 sqm of industrial space in Gilau, while Reggia Capital & Real Estate plans a park displayed on 2.6 ha in Valcele, Feleacu.

Cluj City Hall approved the industrial park status for Parcul Industrial Est, a new project on 14 ha that will host companies in electrical equipment, construction, printing, and tools production. An industrial park status means there will be a tax deduction on land and buildings, in exchange for generating jobs and investments in the local economy. One of the most important industrial parks in Cluj is Tetarom. The city hall approved the Tetarom IV extension and started the bidding process for improving road access to Tetarom III.

Looking forward, the construction of the underground, metropolitan train, motorway, and new connections to the A3 highway (through Tureni, starting in 2025) shall generate new development opportunities in a region with a skilled labor force and tradition in diverse manufacturing.

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