New investments, estimated at around € 1 billion in office, retail, residential and hotel projects, together with a public investment in a new hospital, bring new opportunities to the local real estate market.
Globalworth, the largest office space owner in Romania, recently announced that it has purchased two plots of land for 16 million euros near its Globalworth Plaza & Green Court projects. Globalworth plans to develop two 40,000-square-metres office projects with unconventional lobbying, a green roof and flexible workspaces.
The company also develops in the area the Globalworth Campus, 88,000-square-metres business park, consisting of three buildings, to be completed by the end of this year. One of the world's largest companies, Amazon, leased here 13,500 square meters for its new center in Bucharest.
The South African investment fund NEPI Rockcastle is expected to begin expansion work at Promenada Mall, a mixed 60,000 square meter office and retail space project. The new development has already received an investment of 33 million euros by the end of 2017 and the total cost is estimated at 166 million euros, the delivery date being expected for the second quarter of 2020, according to a public company report.
Skanska has already started work on the Equilibrum project, at the crossroads of Herastrau and Dimitrie Pompeiu Blvd. The investment announced by the developer in the first phase (20,800 square meters) is 37 million euros, the whole complex will total 40,700 square meters.
One United Properties, the developer known for its premium residential projects, recently set up a new division that focuses on offices and bought in the area the North Gate project, where Renault renewed its 20,000-square-metres contract. The estimated market value of the project is 28 million euros.
The area also attracts the attention of hotel investors. Lithuanian company Apex Allaince, which owns Europa Royale and Hilton Garden Inn in Bucharest, builds on Dimitrie Pompeiu Boulevard a four-star hotel to be affiliated with the Courtyard Marriott chain. The new hotel, to be delivered in 2019, will have 259 rooms, 119 parking spaces, a bar, a restaurant and a long-awaited modern conference center in a high-demand area for this type of service.
In the context of growing housing demand as well as a positive economic development, residential projects totaling more than 5,000 apartments are announced in the area and will be delivered in several phases.
In addition, institutional investors as well as local and international players have made significant purchases here over the past two years. Last year, Growthpoint and EBRD joined Globalworth with approximately 26.9% and 4%, respectively. Israeli billionaire Teddy Sagi bought Swan Business Park for 30 million euros and One United Properties acquired North Gate, a project with an estimated market value of 28 million euros.
The area has the highest density of AAA tenants (triple A tenant), some examples including Huawei, Oracle, Orange, Raiffesien Bank, Renault or Vodafone. (source: forbes.ro)
