After it seemed that Barbu Vacarescu – Pipera area has reached its potential and developers focused on other locations in Bucharest, the district is now entering a new development phase, transforming in a North Metropolitan hub of Bucharest, according to an analysis by BUCHAREST REAL ESTATE CLUB.
New estimated investments of more than EUR 1 BILLION in office, retail, residential & hotel schemes, together with public investments in new hospital infrastructure bring new opportunities on the Bucharest real estate market.
Globalworth, the largest office owner in Romania, has recently announced it has acquired for 16 million EUR two plots of lands from Italian Nusco family, neighboring its projects Globalworth Plaza & Green Court. It plans to build here two new state of the art office schemes of 40,000 sq. m, featuring unconventional lobby, green roof and co-work spaces. The company is also building in the area Globalworth Campus, a premium 88,000 sq. m business park, comprising of three office towers, that is to be entirely finalized in 2018. One of the biggest companies worldwide, Amazon, leased here 13,500 sq. m for its new Bucharest center.
South-African investor, NEPI Rockcastle, is expected to begin works at the expansion of Promenada Mall, a mixed project of 60,000 sq. m of retail and office spaces. According to a company public report, the new development has benefited of EUR 33 mln investments up to the end of 2017, the total costs reaching EUR 166 mln, with a targeted opening date for Q2 2020.
Skanska has already begun construction at Equilibrum office project at the junction of Gara Herastrau & Dimitrie Pompeiu streets. The first building will comprise of 20,800 sq. m and has an estimated delivery time in Q2 2019. Upon completion, the entire two-building complex will offer 40,700 sq. m gross lettable area (GLA). The Swedish-based real estate developer announced investments of 37 million EUR in the first phase of the project.
One United Properties, the developer known for its premium-residential projects, has formed a new office division and bought in this area North Gate building, where Renault renewed its 20,000 sq. m lease. The market estimated value of the building is EUR 28 mln.
The area is also attracting the attention of hotel investors. Lithuanian- based Apex Alliance which owns in Bucharest Europa Royale and Hilton Garden Inn is building on Dimitrie Pompeiu boulevard a new four-star hotel affiliated to Courtyard Marriott chain. The new hotel that is to be delivered on the market in 2019, will have 259 rooms, 119 parking units, a bar, a restaurant, meeting rooms and a much-awaited conference center (approx. 535 sqm) in a busy office area of Bucharest.
A public project, The Metropolitan Hospital to be built on the former public transportation base (RATB), was recently approved by the General Council of Bucharest Municipality. The new medical unit will have 1,500 beds and requires an investment of EUR 300 mln.
Under high market premises, driven by the country’s overall strong economic fundamentals, the residential sector is also improving its offer, with projects exceeding 5,000 apartments in the area. Local entrepreneur Petre Niculae has bought a 20,000-hectare plot neighboring the future Metropolitan Hospital, where it plans to build a 40,000 sq. m project, totaling around 600 apartments. Close by, Mohammad Murad, the owner of Phoenicia hotels chain and real estate brokerage company Coldwell Banker Affiliates of Romania, is building Onix Park – a residential compound of 2,000 apartments. Recently, a new large-scale development was announced: Israeli-based Hagag is to start construction for a 90 million EUR project, totaling 1,350 apartments. One of the most experienced Romanian residential developer, Impact, is also interested in the area and is on the process of buying a 55,000 sq.m plot from Nusco family. Local investor Gabriel Popoviciu has a large residential scheme under development here: Belvedere Residences with 1,500 apartments.
High profile institutional investors as well as local and international players have made significant acquisitions in the past 2 years in this area: Growthpoint and EBRD have entered the shareholding of Globalworth with a 26.9% and a respective 4% stake in 2017, Israeli billionaire Teddy Sagi has bought Swan Business Park for EUR 30 mln, while One United acquired North Gate, a building with a market estimated value EUR 28 mln. The area has the biggest density of AAA tenants in Bucharest, with examples including Huawei, Oracle, Orange, Raiffeisen Bank, Renault or Vodafone.