The Academy of Economic Studies in Bucharest is expanding its campus in Piața Romană, after inaugurating a new building consisting of a new building and a modernized one.

The building has a built-up area of 650 sqm, a developed area of 6503.50 sqm. The height regime of the new building is 3 Basement+Ground+7 Floors, and the area of the old building is Basement+Ground+3 Floors.

The new building houses the headquarters of the Council for University Doctoral Studies, the premises of the Doctoral Schools, conference rooms, research laboratories, deans’ offices and faculty secretariats, spaces for scientific activities and academic communication.

The value of the executed and received works is RON 53.77 million including VAT.

CITR announces that the number of impact companies in imminent insolvency increases by 18%, from 6,949 to 8,190, and the one of impact companies in difficulty reaches the highest level since 2013. The study was carried out based on the most updated official financial data, related to the financial situation of the companies at the beginning of 2024.

“The analyzed figures represent a relevant x-ray aimed at understanding the business environment in Romania. We are not talking about a crisis or an external factor that disrupted the activity of companies in 2023, we are talking about an acute, multi-annual and statistically relevant lack of performance, materialized in poor results and sub-optimal indicators. The bottom line is that we are at a critical point where all these companies must adopt measures to adapt and consolidate in order to continue on the long term and have the ability to respond to new challenges,” said Paul-Dieter Cîrlănaru, CEO, CITR.

Of the impact companies, approximately 17% are newly entered into this category and include both newly established companies and companies that, in the previous year, did not reach the threshold of assets greater than EUR 1 million. 7,161 new companies entered the impact category, and 26% of them are already in an imminent insolvency situation. The companies newly entered in imminent insolvency, by migrating from one category to another, or newly entered among impact companies, are active in five industries: Construction (25%), Agriculture, forestry and fishing (14% ), Real estate transactions (13%), Wholesale and retail trade (12%), Real estate transactions (13%). Thus, in 2023, the ranking of the industries with the most affected companies remains unchanged.

Moreover, 47% of the impact companies in difficulty, according to the statistics, postpone for three years the access to a restructuring measure.
The debt of impact companies increased by 8%, from EUR 211 billion, to EUR 228 billion.

The total turnover of distressed companies at the beginning of 2024 was Eur 140 billion, equivalent to 33% of the total turnover of impact companies.

The number of impact companies has steadily grown over the last 10 years, reaching a total of 43,241 at the beginning of 2024. Out of these, 24,748 are considered “financeable” companies, able to manage their debts and access new sources of financing. On the other hand, 8,190 companies are in a situation of imminent insolvency.

“Despite a 4% increase in turnover, the companies’ net result fell by 8%, suggesting a significant pressure on operating costs and a difficulty in effectively managing financial resources. Also, the total assets of these companies increased by 6% – a situation in which difficulties are observed in the recovery of receivables – and the debts increased by 8%, thus underlining the trend of increased indebtedness. All of these aspects reveal increased fragility and a build-up of debt that can have a knock-on effect in certain industries or along supply chains,” concludes Paul-Dieter Cîrlănaru, CEO, CITR.

The Romanian impact companies have generated 83% of Romania’s turnover, at national level.

Currently, 43% of all impact companies, the equivalent of 18,493 companies, are restructurable or in imminent insolvency.

The economic situation worsened during the analyzed period for most companies, only 16% of them managing to improve their financial position, migrating from the difficulty area to the financeable area.

Most of the impact companies in difficulty activate in industries like:

• Companies in the construction industry represent 21% of the total number of companies in difficulty;
• Companies in trade and commerce represent 21% of the total number of companies in difficulty;
• 11% of the total number of companies in difficulty is represented by companies in the real estate industry;
• 10% of the total number of companies in difficulty is represented by companies in the manufacturing industry;
• 10% of the total number of companies in difficulty is represented by agricultural companies.

The number of construction permits issued for residential buildings in Romania rose by 2% in the first half of 2024, reaching a total of 23,772, according to data from the National Institute of Statistics (INS). This increase reflects a steady demand for housing, with several regions across the country showing positive growth in permit approvals.

Significant increases in building permits were recorded in the South-Muntenia region, which saw an additional 264 permits issued compared to the same period in 2023. Other regions with notable growth include the West (+202 permits), Bucharest-Ilfov (+137), North-East (+79), and South-West Oltenia (+64). However, some regions experienced a decline, with the Center region seeing a decrease of 243 permits, followed by the North-West (-31) and South-East (-11) regions.

For the month of August 2024 alone, a total of 3,360 permits were issued for residential buildings, representing a 3.6% drop compared to July 2024. Despite the decrease in the number of permits, the total usable area of residential buildings saw a 3.1% increase, amounting to 808,191 square meters. Notably, 70.3% of these permits were issued for properties in rural areas.

The regional breakdown for August shows mixed results. Decreases in building permits were seen in the North-West (-159 permits), West (-59), South-Muntenia (-19), Center (-18), and Bucharest-Ilfov (-16) regions. Meanwhile, increases were observed in South-West Oltenia (+51), North-East (+48), and South-East (+45).

These figures highlight the varying dynamics of Romania’s residential construction sector, with certain regions continuing to drive growth while others experience temporary slowdowns.

Perla Harghitei, a leading natural mineral water bottler in Romania, is constructing a new headquarters in Sâncraieni, Harghita County. The modern office space, spanning 1,130 sqm, will accommodate up to 100 employees and feature meeting rooms, work areas for teams, and relaxation spaces.

The project, valued at EUR 2.8 million, is part of a broader EUR 40 million multi-year investment plan by Perla Harghitei. This follows the recent completion of a EUR 5.4 million water management station, developed in partnership with BWT Germany and Inotec Romania.

Perla Harghitei reported a turnover of approximately EUR 30 million in 2023, reflecting a 20 percent increase compared to the previous year. The company expects continued growth in 2024, driven by its ongoing investments.

Source: Profit.ro

A multijurisdictional legal team from Clifford Chance Badea, led by partner Mădălina Rachieru-Postolache, advised NEPI Rockcastle on its latest green bond issuance, valued at EUR 500 million. The bond issue was oversubscribed by more than six times, signaling a strong return to the Eurobond market for NEPI Rockcastle after more than two years.

This successful transaction adds to Clifford Chance Badea’s extensive green financing portfolio. The core team, coordinated by Rachieru-Postolache, included senior associates and lawyers from the firm’s Bucharest, London, and Amsterdam offices. The Bucharest office team was represented by Gabriel Toma (Senior Associate) and Martha Busuiocescu (lawyer), while the London team featured Paul Deakins (Partner) and Ayan Koshal (Senior Associate). From Amsterdam, the legal support came from Tineke Kothe (Senior Counsel), Dewi Walian (Counsel), and Marte Schaaf (Associate).

Rachieru-Postolache highlighted the professionalism and efficiency of the team, noting the successful outcome of the transaction despite the tight timeline. “The overwhelming investor enthusiasm is a testament to their confidence in NEPI Rockcastle and the growing market interest in sustainable financing projects,” she said, expressing gratitude to the NEPI Rockcastle team and all parties involved in the project.

This bond issuance is part of a broader green financing strategy by NEPI Rockcastle, which has included the implementation of a EUR 1.5 billion Guaranteed Euro Medium Term Programme and subsequent bond issues under this framework. Clifford Chance Badea has played a key role in these initiatives, including advising on the update of NEPI Rockcastle’s multi-year bond programme, which has a total cap of EUR 4 billion.