All posts by tudor@cijeurope.com.

M Core buys 10 hectares of land in Galati from Speedwell

Real estate group M Core, whose main shareholder is British real estate magnate Caspar MacDonald-Hall, has bought from real estate developer Speedwell a plot of land of approximately 10 hectares in Galati on which it will build a retail park.

The British group has an approved Zonal Urbanistic Plan to create a retail park with a leasable area of approximately 30,000 square meters and has already signed agreements with Lidl and Leory Merlin.

M Core’s plan is to start construction works in the spring of next year, with the development cost of the project estimated at over EUR 34 million. With this project, M Core also adds Galati to the list of 35 cities in Romania where it is already present with retail projects.

Speedwell announced in 2019 that it wants to sell the land in Galati, on which it had planned to develop the Pelican Park retail project.

Source: Profit.ro

CEDER 2025 in review: Financing Real Estate in Romania

Discussions during the “Market Growth Projections” panel held at CEDER 2025 touched upon the role of financing in Romania’s market, revealing both signs of support from the banks, and areas needing structural change, with some investors highlighting specific practices they see as barriers to liquidity and growth.

Silviu Toma, Executive Director, Project and Corporate Structured Finance, at Raiffeisen Bank conveyed the bank’s long-standing dedication to the sector, stating, “we always supported [the] real estate market, and we are trying also to do this right now”. He indicated that the bank is actively adapting its approach, reviewing criteria and credit policies more often due to market volatility, unlike years past when policies remained static.

He affirmed, “the criteria are much more relaxed” today compared to 12 months ago. He believes the investment and development markets should be more substantial in Romania, stating, “we have potential, we have fundamentals”. Silviu Toma also detailed risks recently encountered, including hedging risk, the inability to transfer costs to tenants, leverage, and aggressive valuations. He mentioned efforts to “reduce the amortization of the loans” and be “much more flexible in terms of excess cash” to provide project buffers.

When it comes to asset classes, looking ahead, Raiffeisen is focusing on the retail, logistics, and industrial sectors, while being cautious about office due to occupancy uncertainty, and seeing potential in specialised real estate like clinics and residential for lease.

However, some of the investors taking part in the discussion voiced criticisms regarding financing practices. Joao Saracho de Almeida, Managing Director at Solida Capital Europe, found Romanian amortisation rates notably high, “completely unheard of in other countries”. He urged Romanian banks to “converge more with what is the practice in Germany, in Poland, in even Hungary”. He also felt local banks were not “really hungry for real estate business”, leading investors to use external banks with “non-standard conditions”. He concluded that “there should be a different proactivity from [the] financing sector.”

Vlad Dragoescu, Director, CEE Head of Portfolio Management at Revetas Capital, also noted that the banks’ preference to lend to the state due to the public deficit means “we won’t see liquidity debt in the market”, which might lead to a looming “financing wall”.

Anca Merdescu, Head of Investments at Square 7, part of M Core, summarized the tight relationship between financing and investment by saying: “financing, it’s a very important aspect of any investing, I would say. […] But, […] I think it’s a mix of collaboration between the banks and the investors in order to make this liquidity happen.”

IULIUS developing the third Family Market project in Tomești Commune, Iași

IULIUS Company announces its third Family Market convenience retail project, located in Tomești Commune, Iași County. The concept was launched in 2022, with two projects opened in Miroslava Commune and Bucium neighborhood in Iași.

IULIUS will allocate approximately EUR 28 million for the upcoming Family Market, with an extensive leasable area spanning approximately 16,000 sqm, as well as a diverse mix of shopping, green spaces, sport, everyday use services, and leisure destinations. The trade area within a 10-minutes-drive radius includes 55,000 people, and could also potentially become a shopping destination for people from the Republic of Moldova, being located close to the border. The approval and permitting process is underway for this development. The works are expected to start by the end of this year, and the estimated completion term is the last quarter of 2026.

“The Family Market concept proved its relevance and usefulness in supporting a better quality of life in the expanding communities adjacent to Iași City, by bringing closer the services that locals needed and could only access in the city, but also by developing as meeting places and relaxation venues. The first such projects in Miroslava and Bucium registered up to 33% sales increases in 2024 compared to 2023, while the number of visitors increased by up to approximately 40%. This is because, alongside the retailers and the locals, we managed to propose a mix of services and products customized to the needs of the communities we address, combining popular brands and local producers, with more than 50% of the tenants being local entrepreneurs. Our experience to date will be applied to Family Market Tomești, a destination that will make life easier for families and provide them with convenient access to the facilities typical of a modern urban lifestyle,” said Radu Pârlea, Family Market Shopping Center Manager.

Kaufland inaugurates new hypermarket in Bucharest

Kaufland Romania expands its presence nationwide and opens its 25th store in Bucharest. With this investment, the company reaches a national network of 192 hypermarkets and creates 70 new jobs.

The new Kaufland is located on Şoseaua Colentina no. 461A and has a total area of approximately 6,000 sqm, of which over 3,200 sqm are intended for indoor sales space. In order to facilitate access and streamline traffic, a connecting road was built between Şoseaua Colentina and Şoseaua Andronache.

The shopping mall offers customers access to a variety of shops and services. To ensure accessibility, the hypermarket has a parking lot with 265 spaces.

Kaufland Andronache stands out from other stores in the country through a green project that brings nature into the middle of the city. On an area of 1,400 sqm, saplings will be planted in the coming period, which, over time, will form an urban forest in the heart of Bucharest.

Sameday acquires courier rival Cargus from MidEuropa Partners

Sameday, the courier company owned by the eMAG group, has acquired competitor Cargus from the investment fund MidEuropa Partners. The deal is subject to approval by Romania’s Competition Council.

With this transaction, MidEuropa Partners exits its final investment in Romania. Earlier this year, the fund also sold the Regina Maria healthcare network. Despite these exits, MidEuropa has indicated continued interest in the Romanian market and plans to announce new acquisitions soon.

Cargus is one of Romania’s leading courier companies, reporting a turnover of 567.6 million lei in 2024, reflecting an 11% year-on-year increase.

Hercesa plans housing development near Bucharest

The Spanish group Hercesa wants to expand its real estate portfolio in the industrial and residential sectors in localities around Bucharest, after 20 years of focusing only on the development of apartments in the Capital.

“We are actively looking to expand the portfolio, both in the collective housing sector and in the individual housing sector, in the area surrounding Bucharest, which represented a refuge for clients, during the pandemic, and for developers, during the slightly more problematic authorization periods, and where there is still a lot of potential and even in the industrial sector. We want to replicate in Romania all the attributes of our business in Spain. For the immediate future, we will limit ourselves to Bucharest and its surroundings, but we do not exclude, as a medium or long-term planning, to go out to other cities. There are many cities with potential, such as Iași, Brașov, Timișoara and Cluj,” said Romeo Ghica, Hercesa Romania Operations Manager.

The Spaniards from Hercesa entered Romania in 2004 by acquiring the current Cișmigiu hotel building in the center of Bucharest and continued with the development of the Vivenda Residencias complex, which has reached 1,000 apartments delivered. The investor has also started the last phase of development of Vivenda, which will include a first block with 400 apartments. In parallel with this project, Hercesa is developing the first three buildings of the Stellaris Residencias complex, in partnership with Bluehouse, near the Steaua stadium.

Source: Profit.ro

Lion’s Head secures permit for first logistics park in Romania

Lion’s Head has obtained the construction permit for its first logistics park in Romania, to be developed in Popești-Leordeni, near Bucharest. The project will span approximately 85,000 sqm of built-up area and offer flexible warehouse units ranging from 1,500 to 20,000 sqm.

Strategically located between the existing DNCB ring road and the new A0 ring road, with direct access to the A2 highway, the site ensures efficient connectivity across Bucharest and to key national transport corridors.

The logistics park will comprise three warehouse buildings designed for storage and distribution purposes. Each unit will offer a clear height of 12 meters, addressing the operational needs of various tenants. The development will occupy a 155,000 sqm plot acquired by Lion’s Head in 2023, with construction scheduled to begin in the third quarter of 2025. The investment is valued at EUR 65 million.

Designed with a focus on sustainability and efficiency, the project includes landscaped green spaces, recreational areas, and ample parking with electric vehicle charging stations. It will incorporate modern building management systems (BMS), sustainable materials, and smart energy solutions to reduce operational costs and environmental impact.

“Romania’s logistics market holds exceptional potential, and we are fully committed to contributing to its growth. With our experienced local team, we are confident in delivering a project that provides sustainable, efficient, and flexible spaces tailored to tenant needs,” said Alina Necula, Country Manager Romania at Lion’s Head Investments.

“This step aligns with our strategy to expand into new CEE markets by transforming local opportunities into regional growth platforms. Romania is central to this vision, and this logistics park will play a key role in shaping our next-generation, future-ready logistics portfolio,” added Vladimir Gurdjieff, Group Director Logistics and Industrial Assets at Lion’s Head Investments.

The development marks Lion’s Head’s entry into Romania’s logistics sector and the expansion of its local portfolio. The company, a joint venture between AG Capital and Old Mutual Property, manages assets worth over EUR 440 million, including the Oregon Park office complex in Bucharest.

In 2024, the International Finance Corporation (IFC), a member of the World Bank Group, committed EUR 150 million to support Lion’s Head’s sustainable logistics developments in Romania and Bulgaria, aimed at enhancing green warehousing infrastructure across the region.

Atlantic Grupa leases some 7,000 sqm at VGP Park Split

VGP has signed a built-to-suit lease deal with Croatian distributor of fast-moving consumer goods Atlantic Grupa. Under the deal, Atlantic Grupa leases some 7,000 square metres for its premises at the VGP Park Split, which is under development.

The facility, pre-leased during the construction phase, is going to include ADR zones for dangerous goods and temperature-controlled chambers.

VGP Park Split is situated in Dugopolje, in southern Croatia near major transportation hubs such as Split Ferry Port and Split’s International Airport, providing easy access to key markets in Croatia and neighbouring countries. On an 187,000 square metres plot, VGP is going to develop a total of 74,000 sq m of logistics and industrial premises.

Florin Tanase finalize the structure of the first building from Noura Residence

Football player Florin Tanase, currently playing for FCSB, and FIFA agent Florin Vulturar, completed the structure of the first building from Noura Residence, located in the northern part of Bucharest.

Noura Residence will comprise 128 apartments in four buildings with six floors each. 40 apartments were already contracted so far, representing 31% of the total units included in the project, in less than six months from the sales start.

”We received a very good response from the market, which proves us that we have found an attractive recipe for those looking for a premium home, located in the northern areas of Bucharest, with very good access to the most important points of interest in the city. We are rapidly advancing with the construction of Noura Residence, we have already implemented several top technologies, we are working on the second building in the project and we’re preparing for premium finishing stage in the first building. The development of Noura brings me multiple satisfactions, I am actively involved in all stages, and I will certainly continue to be an active investor in the Romanian residential market” stated Florin Tanase, the developer of Noura Residence.

”Pipera-south area, where the project is being developed, is one of the most effervescent on the residential market in Bucharest. Over 50% of the new homes due to be completed this year in the city and its surrounding areas are located in the northern parts of Bucharest, according to SVN Romania’s data. The easy access to the main business centres from Aviatiei area, to the most important commercial areas from northern city, to some of the best private educational institutions but also to Henri Coanda Airport and A3 Highway are the main advantages of the area”, said Victor Vremera, COO and managing partner SVN Romania, agent of the project.

Globalworth plans new office construction

Globalworth is in the final phase of analyzing the opportunity to start new office construction, almost 5 years after the completion of Globalworth Square.

“We are in the final stages of analysis to start new developments. Half speculative, half pre-leased. There is a clear need for new developments. If a company wants to move to Bucharest now, it finds that it does not have much choice in terms of new buildings. The most modern building in Bucharest was delivered in 2021, and if you are planning to move in 2027, the building will be 6 years old. For some we already have authorization, and for others we are working on it,” says Andrei Boca, Leasing Director at Globalworth.

Andrei Boca said that, in the first phase, during the pandemic, Globalworth faced a reduction in some of its tenants, and the spaces received back were very quickly absorbed by the market, by companies that moved from inaccessible areas or from class B buildings, such as eMag and Coca-Cola.

“In the past, we assumed to leave a floor or two of a building, for possible phases of tenant growth. In 2025, we are fighting to regain this flexibility, because almost all buildings are fully occupied, which leaves very little room for maneuver for those who want to grow. We have cases of companies that have reduced their footprint and that want to grow again. They have a number of employees, which corresponds to a number of jobs. During this period, companies have grown, but the number of jobs has remained unchanged and overlaps of employees in the office work schedule may occur,” explains Boca.

Source: Profit.ro

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