The two companies entered a joint-venture partnership in 2016 (the DJV), and are investing predominantly in retail assets, carefully selected residential projects, and, depending on opportunities, other real estate areas.
“Prime Kapital is committed to developing high-quality spaces with long-term sustainability. Our commitment to providing quality can be seen across the board. We have a keen focus on the regeneration of derelict industrial platforms, seeing these large sites transform into neighborhoods with integrated functions and quality green and leisure areas. Our residential development pipeline is on track with our medium-term goal to deliver 2,000 quality dwellings per year, over multiple cities in Romania”, said Maggie Kitshoff, Residential and Office Partner in Prime Kapital.
“The DJV has proven to be very beneficial, with both Prime Kapital and MAS benefitting from integrated, effective teams, and each partner providing best-in-class talent pools and specialised functions to the other. We are happy to have extended our partnership, and are looking forward to continuing our growth via further commercial and residential development pipeline”, said Irina Grigore, CEO of MAS PLC.
The DJV plans to invest 517 million euros in developing or extending enclosed and open-air malls in 10 cities across Romania: Cluj-Napoca, Iasi, Pitesti, Alba Iulia, Bucharest, Brasov, Giurgiu, Baia Mare, Slobozia, and Roman.
For office development, the two partners plan to invest, via the DJV, 254 million euros, in two projects in Cluj-Napoca and Iasi (Silk District), and an additional 1,194 billion euros for residential developments in six cities: Bucharest (3 projects), Brașov (1 project), Cluj-Napoca (1 project), Iași (1 project), Ploiești (1 project), Timișoara (2 projects).
Ongoing residential developments
At Marmura Residence, the DJV’s first completed residential project, the handover was performed for four buildings of the project’s total five buildings comprising 458 units. Construction on the fifth building is substantially complete and handover of the last units is expected to commence soon.
Construction and sales continue for approximately half of the development comprising 746 dwellings on the Avalon Estate residential project. To date, 70% of the 352 residential units currently released for sale have been sold. Construction and finishing works on the first buildings are complete, and the sales office has been operational in the project’s Gatehouse since March 2022.
Construction of the first phase of Silk District’s residential component (315 units; 71% sold) is progressing well. Permitting for the second phase (346 units; 48% sold) has been obtained and it is ongoing in respect of the third phase (312 units; 25% reserved).
For Pleiades Residence, a 10.1ha mixed-use urban regeneration in downtown Ploiesti, construction works have commenced, and sales (launched in December 2021) are progressing well.
The DJV plans to develop residential projects on former industrial sites of Roman Brasov (2,137 apartments) and Elba Timisoara (1,251 apartments) as well as for the residential components of the large-scale mixed-use projects in Bucharest (3,149 apartments) and Cluj (1,461 apartments).
New projects
A 6.9ha site was secured in south-eastern Timisoara, in an area being converted from industrial to retail and residential, for the DJV’s second large-scale residential development in the city. It will consist of approximately 2,300 apartments and support functions. Also, the DJV has secured land and is currently undergoing due diligence for a large-scale enclosed residential estate of approximately 920 apartments, in a major secondary city in Romania.
In addition to the above, the DJV has secured an approximately 5.9ha site in Giurgiu, on the European Route E85, a major freight and leisure road transport artery, connecting Romania to Bulgaria, on the route to Greece and Turkey. The site, which has good visibility from the city centre and an excellent location adjacent to Giurgiu’s border with Bulgaria, is earmarked for an approximately 14,200m2 GLA open-air shopping centre, with the potential for an additional 4,300m2 GLA extension.
