The real estate investor Argo Group, controlled by the largest bank in France, BNP Paribas, and its founder, the Cypriot Andreas Rialas, is preparing to exit the Romanian real estate market, after in 2011 it had become the largest owner of malls in the country.

Shopping centers owned by the investor – Shopping City Sibiu, Shopping City Suceava, Era Shopping Park Iași and Era Shopping Park Oradea – combined a rentable area of 243,000 square meters.

The group’s most important asset was Shopping City Sibiu, sold in 2016 to NEPI in a transaction of EUR 100 million. This was followed in 2017 by the sale of Era Shopping Park Iași to the Prime Kapital – MAS REI consortium.

The company that manages Era Shopping Park Oradea entered insolvency in 2013 with debts worth around EUR 60 million. After a long period of trying to sell this asset, Argo managed to find a buyer, from which it earned USD 3.2 million.

After the sale of the shopping center in Oradea, Argo was left with Shopping City Suceava, and is now in advanced negotiations with the British giant M Core for its sale, which is equivalent to an exit of Argo from the Romanian real estate market.

Source: Profit.ro

The ARO – Patria block, in the center of Bucharest, will be consolidated with non-reimbursable national funds, announces the general mayor of the capital, Nicușor Dan. In the spring, it was announced that the owners’ agreement had been obtained for the consolidation of the ARO block in the capital, and the expert appraisal works of the building will be initiated.

“We are technically assessing the ARO Block, an emblematic building of the Capital on Magheru Boulevard no. 12-14, which houses the Patria cinema and which, according to older assessments, was classified as Class I Seismic Risk. Built in 1935, the Aro Block was the first modernist building in the Capital, designed by architect Horia Creangă. The owners’ agreement was obtained for the consolidation of this historic monument building, and now the Capital City Hall, through the Municipal Administration for the Consolidation of Buildings at Seismic Risk (AMCCRS), is initiating the expertise works that will last 60 days. The next stage will be the energy audit, and then we will enroll in the Ministry of Development program to obtain the funds necessary for consolidation and rehabilitation”, the mayor said.

The Patria Cinema, an emblematic place for Bucharest and operating continuously since 1935, was closed in 2015 indefinitely, due to the new law that do not allow companies located on the ground floor of buildings with seismic risk to operate.

Source: Profit.ro

British real estate giant M Core is in advanced negotiations to acquire two major shopping centers—Shopping City Suceava and Focșani Mall—along with a portfolio of retail parks in Romania. The transaction is estimated at approximately EUR 100 million, according to industry sources.

Both malls, launched in 2008, represent key assets in the Romanian retail landscape. M Core, one of the UK’s largest commercial property owners with a portfolio valued around EUR 7 billion, first entered the Romanian market last year by acquiring 25 retail parks from Belgian investor Mitiska REIM for EUR 219 million.

As part of its expansion strategy, M Core formed a joint venture with Square 7 in April, tasked with overseeing the company’s growth in Romania. The acquisition of Shopping City Suceava, Focșani Mall, and additional retail parks would solidify M Core’s presence in the region, where it aims to further establish itself as a prominent player in the Romanian retail property market.

Source: Profit.ro

The Titan Heavy Machinery Factory in Sector 3 of the Capital, established 54 years ago, has been put up for sale. CITR and Trust Insolvency are handling the company’s insolvency, and interested parties can submit offers. The sale price was not made public.

The industrial platform has potential for residential, commercial or mixed development.

The land has a total area of 47,300 sqm, the halls have a built-up area of 38,900 sqm, as well as a five-story administrative building, with an area of 2,700 sqm, renovated in 2009. The land and buildings are located on Basarabiei Boulevard 250, in close proximity to Kaufland and Lidl stores.

Source: economica.net

The real estate advisory firm, Griffes, reports an outstanding performance in the first three quarters of 2024, marking a record year for the company, especially in the office leasing sector.

Griffes team advised on a total of over 70,000 sqm office space transactions this year, spread 80% in Bucharest and 20% in the geography of regional cities mostly Cluj-Napoca, renowned as “the technology and IT capital” of the country. Griffes’ portfolio covers both new leases (36%) and contract renewals (64%), providing support for companies setting up new offices or consolidating their business, and constant guidance for businesses seeking to secure their premises and the financial stability in their renewal efforts.

So far, the total value of all office leasing deals signed by Griffes in 2024 is exceeding the EUR 65 mln. threshold, bolstered up by the long-term strategy of the occupiers who secured premises, (weighted average), for 6.8 years.

The renewal of Genpact’s 30,000 sqm lease at Hermes Business Campus in Bucharest is particularly noteworthy. This is the largest office deal in Romania for the past decade and reflects the continuity and the confidence of multinational companies in Romania’s business environment.

Currently, the average office lease transaction in Bucharest stands around 1,350 sqm, while in Cluj-Napoca it averages approximately 1,800 sqm.

“2024 has been a truly transformative year for Griffes, showcasing the strength of our long-term partnerships with landlords and our ability to adapt to the evolving needs of the tenants. We have been relentless in searching for balance in between a very granular demand and a higher risk environment (supply wise), so we became hypercreative to craft solutions. Over half of our work is with tenants that already work with us the 2nd or 3rd time, which is fantastic for a team only several years old, and most of the lease duration we signed are for more than 6 years, firm and robust. In a market where word of the day is ”volatility, this is what I call true extra value and high performance,” stated Andreea Paun, Founder and Managing Partner at Griffes.