Wednesday, 18 February 2026
Square 7, part of the M Core group, has continued to expand its retail portfolio in Romania, balancing acquisitions, development, and asset management amid a challenging economic environment. In this CIJ EUROPE Q&A, Anca Merdescu, Head of Investments at Square 7,part of MCore reflects on the group’s investment priorities in 2025 and outlines how its long-term strategy is shaping decisions for the years ahead.
Looking back at 2025, what were the key investment priorities for Square 7, part of MCore and how did they shape your portfolio strategy this year?
Our key investment priorities in 2025 were closely linked to maintaining a strong focus on what we know best, which is convenience retail. While the Romanian market offers many opportunities, we believe that preserving a clear and consistent strategy is essential. Saying no can sometimes be difficult, but it is often the safest approach when it comes to protecting long-term strategic direction.
In parallel, we were very active on the development and asset management side, including several properties we have acquired in recent periods. A significant part of our work during the year focused on the integration process that follows acquisitions, covering people, internal processes, data, and overall operational alignment.
At the same time, we could not ignore the broader economic context, which has added sensitivity to all investment decisions. The increase in VAT and the higher overall tax burden are being felt directly by consumers, and this is reflected in our financial assessments. We also see economic sentiment and consumer confidence on a declining trend, influenced by fiscal consolidation measures and persistent inflation. As long-term investors, we continued to build our portfolio carefully in 2025, remaining open to acquisitions but highly selective and guided by a long-term view.
Square 7, part ofM Core have been active in new retail parks as well as in rebranding existing assets. How do you assess the performance of these projects so far, and what lessons are you taking into 2026?
Overall, asset performance has been in line with our expectations, although we have also had to adapt to new regulatory and fiscal measures that have a direct impact on landlord costs.
The intensity of activity over the past period has allowed us to encounter a wide range of situations, which has contributed to our continuous development as an organisation. When you are completing acquisitions worth hundreds of millions year after year, the learning curve is ongoing.
One important lesson relates to market maturity. Being an active buyer is sometimes not enough; you also need a prepared seller and a truly sellable asset. This can make a significant difference in execution, timing, and overall performance.
Another key aspect is our relationship with financing partners. We focus on building long-term partnerships with our lenders, and it is essential for us to deliver on what we commit to in shared business plans. This can be challenging, particularly in development projects, but transparency and alignment with banking partners are critical.
Finally, the team itself is a decisive factor. Doubling a team in a short period is not easy, but it also brings new energy and perspectives that support our growth plans.
How does Square 7, part of MCore integrate ESG and sustainability criteria into its investment approach?
ESG and sustainability criteria are essential for M Core. As long-term investors, we cannot invest against the direction in which the market is moving.
Green certifications, nZEB requirements, and energy-efficiency measures are a must in everything we do, whether we are developing projects from scratch or acquiring existing assets. These elements are always assessed as part of our investment and development process, as they directly influence long-term performance, operational efficiency, and asset relevance.
With the recent relocation of your Bucharest office and ongoing projects in regional cities, how important is geographic diversification in your medium-term strategy?
Geographic diversification plays a very important role in our medium-term investment plan. Convenience retail works well across a wide range of locations, which is why we are comfortable investing not only in major cities but also in smaller and regional markets.
We believe there is still significant growth potential across Romania, and we want to be present where consumers actually live and shop. By expanding beyond the main urban centres, we aim to build a flexible and resilient retail platform that can adapt to local needs and support long-term growth across the country.
Looking ahead, what types of assets or market segments do you see as priorities for Square 7, part of MCore in 2026 and beyond?
Looking ahead to 2026 and beyond, we remain committed to our core activity, which is retail. We believe this segment offers resilience and long-term relevance across different market cycles.
At the same time, M Core operates as a family office, which gives us the flexibility to move quickly when we identify a real opportunity. That flexibility is important, but any potential investment must meet very clear criteria. Opportunities need to align with our risk and return expectations, as well as our ESG, sustainability, and quality standards.
In that sense, we combine the agility of a family office with the discipline and analytical rigor of an institutional investor, particularly when it comes to risk assessment and long-term value creation. This balance between flexibility and rigor will continue to define our investment approach going forward.
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