AFI Europe to develop new shopping center, office project in central Romania

Israeli real estate developer AFI Europe Romania has signed the purchase agreement for a 40,000 sqm plot in the city center of Brasov, in central Romania. The value of the deal was not disclosed. The company plans to develop a new shopping center and an office project on this plot, according to a company statement. Both projects are to be opened in October 2017. “Brasov is the main tourist destination in Romania, attracting some 1.5 million tourists per year, and the city has a large population with purchasing power above average,” said David Hay, CEO AFI Europe Romania. The new shopping center, located in downtown Brasov on the former Hidromecanica platform, will have a gross leasable area (GLA) of 45,000 sqm spread over three levels. The third level will host the food court, the entertainment area, and a cinema. AFI Europe Romania is already in advanced discussions with a hypermarket chain and the leading fashion retailers to anchor the project. This is AFI Europe’s third commercial center in Romania. The developer already runs AFI Palace Cotroceni in Bucharest, one of the largest shopping centers in Romania, with a GLA of 81,000 sqm, and AFI Palace Ploiesti, with a GLA of 33,000. AFI Europe’s Class A office project in Brasov will have a leasable area of 11,000 sqm and will be designed as a green building. On the office segment, the company is currently developing AFI Park, a 5-building project with a GLA of over 70,000 sqm, next to the AFI Cotroceni mall. Three of the project’s building are already finished and fully leased. The other two buildings are to be completed in 2016. AFI Europe has been operating in Romania since 2005. In the near future, the company will develop two other mixed projects in Arad (on a plot of 80,000 sqm), and in Bucurestii Noi neighborhood in Romania’s capital (on a plot of 148,000 sqm). On the office segment, AFI Europe will also develop AFI Business Park Bucharest with a GLA of 50,000. Located near the J.W. Marriott hotel, the park will include 2 Class A office buildings, and an office tower. AFI Europe invests EUR 15 mln to expand shopping center in Bucharest. Romanians spend more in AFI Palace malls, owner posts higher revenues. Developer AFI Europe Romania delivers its third office building in tech compound. Irina Popescu, irina.popescu@romania-insider.com