Argo is one of the biggest owners of retail parks and commercial centres in Romania.
According to the conclusion of a study conducted by ARGO, the tenants in the food and entertainment areas (restaurants, fast-foods, cafes, indoor games etc.), less affected by the „online era” will continue their expansion in the following years in the commercial centres in Romania, both as number and surfaces, the local market on this segment being anyway still underdeveloped compared to its potential. At the same time, the cinemas will grow in the next years, and their design will require the recalibration of some areas in order to create large enough premises to offer a unique experience for leisure. Therefore, the regression of other retailer categories that will not be able to adapt the e-commerce era, will be compensated.
The kids area could extend significantly in the commercial centres, according to ARGO study.
“Kids in Romania still benefit from extremely few options of specific entertainment, so, apart from the children theatres and parks (not many, too), there are not many options left ; moreover, if we speak about indoor spaces, then the options become very small. Therefore there is a business potential, also stimulated by the fact that more and more parents think that the internet is useful for everybody, but real life and socialization have their roles in children evolution”, showed Graham Kilbane.
After the entertainment, food and children areas, depending on the location of each commercial centre, the next place in terms of extension potential for the future could be occupied by activities dedicated to the local communities. Comparing to other European countries, the NGOs activity and the volunteering are still at low levels in Romania, although there is a favourable trend.
“I believe that the commercial centres will involve more and more in local communities life on a regular basis, by own activities as well as through partnerships with other institutions and organizations. For instance, ARGO has implemented in its retail parks a weekly program of free instruction of the third generation in computer and internet use and I believe that other commercial centres also offer different opportunities in this direction.”, Graham Kilbane added.
Argo Real Estate Opportunities Fund (ARGO) is one of the biggest retail parks and commercial centres owners in Central Europe and SEE, with projects over 340,000 sqm GLA. Argo is a closed investment fund, mainly real estate oriented.
In Romania, Argo Real Estate Opportunities Fund owns four retail parks: Shopping City Sibiu, Shopping City Suceava, Era Shopping Park Oradea and Era Shopping Park Iasi, with a total rentable area of 271,000 sqm. Era Shopping Park is the biggest retail park in Oradea with 64,000 sqm rentable area. Era Shopping Park Iasi is also the biggest retail park in the city with 80,000 sqm rentable area. Shopping City Suceava has a rentable area of 47,000 sqm and Shopping City Sibiu is the biggest retail park in Argo’s portfolio and the third biggest in Romania, with over 80,000 sqm rentable area. (source: wall-street.ro)
