AFI Europe Romania seeks more lucrative segments: apartment rental
Visibly driven by the sluggish activity in its main markets (commercial and office), AFI Europe Romania bought just over a hectare of land in the overcrowded Pipera area in northern Bucharest, where it plans to build 450 apartments and rent them.
It is a proven recipe for success, tested for decades by the Romanians that have used their savings to buy apartments to derive a slightly better yield compared to the dismal (sometimes real negative, such as now) bank deposit interest rates.
On a larger scale, but following the same business plan labelled as Built-to-Rent concept, AFI Europe paid some EUR 12 mln to Impetum Group for the land and will develop the project itself.
"This transaction is in full accordance with our strategy to diversify our portfolio in Romania by increasing the residential component," explained Doron Klein, CEO of AFI Europe Romania and the Czech Republic, quoted by Ziarul Financiar.
The target market: "young people, dynamic people and families looking for more mobility and flexibility in the selection process of an apartment, carefully choosing the owner who can offer, in the same place, access to a number of attractive services and facilities for its tenants," adds Doron Klein.