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September 28, 2020
BUSINESS

S IMMO AG invests EUR 75m in Bucharest projects

Austrian real estate investment company S IMMO AG announces exceptionally positive results for the first half-year 2016 and further development plans in Romania. The company’s total revenues amounted to EUR 95.3m (HY 2015: EUR 92.2m), an increase over the prior-year figure.

Romania is an important market for S IMMO AG’s further expansion in Southern and Eastern Europe. Two of the company’s current key projects are located in Bucharest: the development of the promising office property called THE MARK has just started, while the reconfiguration of the Sun Plaza shopping centre, started at the beginning of the year, is proceeding according to plan. S IMMO AG will invest roughly EUR 75m in these two projects. To date, S IMMO AG invested over EUR 200m on the local market, including landmark developments such as Sun Plaza shopping centre and Sun Offices in the South of Bucharest and Novotel Bucharest Business Centre hotel on Calea Victoriei.

According to Friedrich Wachernig, member of S IMMO AG’s Management Board, “Romania continues to spur a high investmentfriedrich-wachernig_s-immo-ag potential, due to the long-term recovery of the market, the rising GDP per capita as well as the decreasing unemployment rate. S IMMO AG thus focuses on long-term developments in the country, with THE MARK and Sun Plaza projects having already started and advancing according to schedule. We are extremely optimistic for the evolution in the upcoming years.”

THE MARK is the first significant class A office project to be built in Bucharest CBD after a pause of approximately 10 years. The project has a total built area of 43,000 m² and a combined GLA of approximately 25,500 m², comprised in two class A+ buildings. Located on the new Uranus boulevard, at the junction of Calea Grivitei and Buzesti street, THE MARK will be a new business destination in Bucharest as well as a new visual reference point in the city due to its outstanding location and innovative design approach adapted to the actual urban living. The project will benefit of a generous parking area with 345 car seats (300 underground and 45 above ground), as well as bicycle racks and electrical vehicle charging stations. The investment value for THE MARK is estimated at approx. EUR 45m starting with construction. The construction works started in July 2016 and are expected to be completed in the second quarter of 2018.  The leasing process will start in the fourth quarter of 2016, with CBRE and Jones Lang LaSalle to act as the project’s co-exclusive leasing agents.

sunplazabucharest-eg-001-final2-0000Opened in February 2010, Sun Plaza is the dominant shopping centre in South Bucharest, with a built area of approx. 200,000 m2 and a leasable area of over 80,000 m2, managed by CBRE Romania and owned by S IMMO AG. After the remarkable performance achieved in its six years of existence, Sun Plaza took on a new challenge in 2016: a refurbishment process that will significantly improve the retail mix and shop count. The upgrading process of Sun Plaza started in the first quarter of 2016 and is expected to be completed in the first quarter of 2018. The remodeling works will bring 11,000 m2 of high-quality retail and leisure space for up to 40 new stores. The total investment value for Sun Plaza remodeling is estimated at EUR 30m.

 

S IMMO AG

 

As Austria’s first stock exchange listed real estate investment company, S IMMO AG has stood for experience, a balanced portfolio, and sustainable growth since 1987. The company invests in commercial and residential properties in Austria and Germany as well as Central and Southeastern Europe. S IMMO AG’s strategic core shareholders are Erste Group and Vienna Insurance Group.

 

 

 

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