Owners of AFI Palace Cotroceni shopping mall in Bucharest foresee EUR 30 mln income this year

AFI Palace Cotroceni shopping mall in Bucharest, AFI Europe’s largest and most important asset, posted a net operating income of EUR 7.4 million in the third quarter of 2014 and of EUR 22 million in the first nine months, representing a year-on-year increase of 4%. Based on these results, the net operating income for the entire year is estimated at EUR 30 million. AFI’s retailers’ sales, excluding the hypermarket, increased by 4.3% year-on-year in the third quarter and by 3.7% in the period between January and September. The mall had an average of 52,000 visitors per day in the first nine months, while its occupancy rate reached 98%. AFI Palace Cotroceni was valued at EUR 401 million at the end of September, which represents a 7% increase compared to 2013. AFI Palace Ploiesti shopping mall, in the portfolio of the same real estate owner, was valued at EUR 66 million as of September 30, up from EUR 56.5 million last year. The occupancy rate of the shopping mall in Ploiesti remains 99%. "The value of our income generating assets, projects under construction and lands in the portfolio has grown significantly to EUR 670 million, with an average occupancy rate of 98% and a net operating income of more than EUR 27 million for the first nine months of 2014. We plan to continue this growth rate with new office buildings and new shopping malls to be developed in the near future” said David Hay, CEO AFI Europe Romania. On the office segment, AFI Park 1 was valued at EUR 28 million, while AFI Park 2 was valued at EUR 27.5 million. The company has three other office buildings currently under construction, namely AFI Park 3 – which is to be completed in December 2014, and AFI 4&5 – which are to be completed in the fourth quarter of 2015. Irina Popescu, irina.popescu@romania-insider.com