Israeli group AFI Europe Romania is preparing to expand its mixed-use project AFI Cotroceni in Bucharest with new retail, office and residential spaces plus a hotel.
The new developments will increase the total value of the project from around EUR 700 million to over EUR 1-1.2 billion, Ziarul Financiar estimates.
“On the new 50,000 sqm plot purchased a year and a half ago next to AFI Cotroceni, we will be able to develop a 150,000 - 200,000 sqm project, a huge project. We will implement a residential component for rental, a concept that we trust, offices and additional retail, and a hotel. By implementing these elements in the Cotroceni area, the synergy between the segments will be excellent," commented Doron Klein, CEO of AFI Europe Romania.
AFI Cotroceni has tenants in the AFI Park office buildings that need room to grow and expand, and for this reason the developer is considering the construction of a new building near the IMAX cinema, or other buildings on the new land purchased a year and a half ago, adjacent to the mall on Timisoara boulevard.
According to the most recent public report, at the end of 2017, the AFI Palace Cotroceni mall had a value of EUR 495 mln, while the five office buildings of the AFI Park project were evaluated at EUR 165 mln.
AFI Europe Romania has stepped up the development activity in Romania in recent years. Moreover, last year, AFI Europe Romania bought NEPI’s office portfolio for EUR 300 million and signed an agreement to take over the Casa Radio project in Bucharest.