The proposals represent a unique opportunity to develop what is probably the largest plot of derelict and underused land at 60 km from Bucharest and inside of an urban agglomeration, Ploiesti City. The components of successful regeneration should generate significant opportunities at a local, regional and national level. They contain the essential components needed to integrate new and existing communities with the opportunities created by new development.
In doing so, the real estate development would fundamentally change the social and economic role of UPETROM, a Romanian company acting on the international market of oilfield equipment, with new benefits and opportunities throughout the construction program and beyond. Formerly considered the largest producer of oil equipment in Romania but also in South East Europe, the former Plant 1 May had about 18,000 employees nearly three decades ago, being a symbol during communist period and their well-known celebration parades. In the years 1970-1980 the company becomes the main supplier of deep drilling rigs in CAER countries; to these can be added other countries like India, Pakistan, Siria, Irak, Turkey.
The real estate property belonging to UPETROM Plant has a strategic position and existing infrastructure which is making the regeneration process much easier. There is direct connection to main national roads and highways A3 (to Bucharest) connecting to A2 (to Constanta port); direct connection to the national railroad system and transport authorization for all main access roads.
The mix of uses and building types in the former plant proposals would act as a catalyst for economic clustering and further diversity in industry sectors in Ploiesti City. Part of the industrial platform is already included in the biggest real estate developer’s expansion plans (shopping areas and supermarkets to be developed in proximity by Prime Kapital and Lidl; industrial sites already developed by Timken or presence of other multinational industrial companies like OMV, Rompetrol, British American Tabaco etc.). From a total of 357,000 sqm, divided in 2 sides by its own railways with connection to the national railway systems, the northern side is already sold and some plots of lands from the south side are under negotiation process.
The investment costs and time are attractive for logistics and industrial real estate developers, due to an existing PUZ and PUD for industrial development, existing environmental permit for all land plots and the existing utilities infrastructure. The industrial site is surrounded by several residential properties (blocks of flats and houses) as well as commercial real-estate properties (Kaufland). The property is divided into several plots of lands, most comprise a few industrial constructions (warehouses, locker rooms, offices) and concrete platforms used as storage facilities. According to the Local Urban Planning Document the property is in S9 area with FAR of 35% and BTL of 1.05. The surroundings are well served by public transportation services. The potential for commercial development in the area is ensured by the good location and good access, in a circulated area.
Based on Casazela Properties’ data and research on the real estate market, the main trends with impact on the real estate business are:
- Private capital injections on the real estate market, especially in developing supporting infrastructure
- Urban development, due to migration to the cities, the main engine for growth in large and mid-sized cities
- Technology innovations
This property, offering different sizes of plots of lands (from 3,000 sqm to 71,000 sqm), represents a perfect example of how the private capital is taking over properties and projects that were abandoned by banks and giving them a new chance to serve their purpose and generate income. In the last 5 years, the industrial properties are leading the types of properties resold in Romania, followed by residential properties and lands. Romania’s stock of modern Industrial & Logistic spaces was increasing with 50 percent over the last three years, but there is still significant room for growth compared to other CEE countries.
For any enquires about the sales process (assets are sold in in insolvency proceedings, ensuring transparent price expectations and reliable property rights of land plots), please contact us: [email protected] or +40 734302308.
For more details about the above property please visit the link: UPETROM 1 Mai, Ploiesti
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