AFI Palace Cotroceni mall, the largest asset of AFI Europe Romania ended 2014 with total revenues of 37.5 million Euro, out of which 30 million Euro stand for the net operational income (NOI), with 4 per cent more compared to 2013.
The same indicator was 7.7 million Euro in Q4 of 2014, compared to 7.5 million Euro registered in the same period of 2013, a company release states. The commercial center is evaluated at 401 million Euro, representing a 7 per cent increase compared to 2013. The sales of retailers, tenants within the commercial center also increased with 9 per cent in Q4 of 2014. The mall registered an average traffic of 52.000 visitors daily foe an occupancy rate of 98 per cent.
At the beginning of this year, AFI Europe announced it completed the third office building of AFI Park, Bucharest newest and most advanced Class A business park. AFI Park 3 is fully leased to Endava Romania and TELUS International, and the spaces were handed over to its tenants, according to schedule, in order to move in and start operations.
“AFI Park has all the essential advantages as the best option for multinationals when deciding to open a new office or to expand in Romania. With advantages such as superior location, expansion options, the best performed technical specifications and work environment, 24/7 non-stop continuous operations time, the proximity to AFI Palace Cotroceni and to the Politehnica University as an excellent source of future employees for IT&C and BPO companies, AFI Park offers it all”, said David Hay, CEO AFI Europe Romania. “We are continuing the development of the office complex with AFI Park 4&5 (32,000 sqm GLA), building to be delivered in Q4 2015”, added David Hay.
The construction of AFI Park 3 (12,200 sqm GLA) began in June 2013 under the General Construction Company Danya Cebus with a total budget of over EUR 20 million. The construction was finalized on time and within budget. The project is financed with a development loan of EUR 15 million by BCR (Banca Comercială Română), a member of Erste Group. AFI Park 3 has all of its office spaces fully leased. AFI Park 2 is also entirely occupied by Electronic Arts and AFI Park 1 is fully leased to companies such as Microchip, Cameron and Sparkware Technologies. Recently, X Body by Monica Iagar, world champion and double European champion at high jump, was launched in the Ground Floor of AFI Park 2, featuring a new fitness center based on EMS technology.
AFI Park 1 and AFI Park 2 are the first office buildings in Romania to obtain the LEED Gold Core & Shell Certification. The additional office buildings in AFI Park are in process of being certified as LEED Gold. The first two buildings were recently valued at EUR 28 million and EUR 27.5 million respectively.
In April last year, AFI Europe Romania started the construction of AFI Park 4&5, the 4th phase of the award winning office project, which will be finalized in Q4 2015. AFI Park 4&5 is constructed as one building, offering a floor plate of approximately 3,000 sqm to respond to the needs of large open space for IT&C and BPO companies, offering to its tenants 24/7 non- stop continuous operations time. The building will total 32,000 sqm of Class A leasable area (GLA) spread over 12 floors, served by 2 underground parking levels with 300 spaces. The ground floor will offer retail spaces, designed to provide tenants with services and amenities in addition to the services provided by the shopping mall. The 12th floor will host a coffee shop terrace for the benefit of the future tenants.
AFI Park consists of 5 Class A office buildings, with a total gross leasable area of 70,000 sqm, all buildings are linked to AFI Palace Cotroceni (81,000 sqm GLA). Together, the two projects (151,000 sqm GLA) feature the largest complex of retail and business in Romania and one of the largest in the CEE region.
AFI Properties is a member of AFI Group, an international holdings and investments conglomerate with subsidiaries that engage in real estate, construction, infrastructure, industry and hotels (www.afigroup-global.com) The company is active in the income producing and development property market since 1971. AFI Properties has been listed on the Tel-Aviv stock exchange in 2004. The company has been active in Europe since 1997 through its subsidiary AFI Europe mainly in the CEE markets. AFI Properties is ranked “BBB+ positive” by S&P and “A3 stable” by Midroog (a subsidiary of Moody’s).
AFI Properties financial results for the first 9 months of 2014 registered a sharp increase in profit to EUR 55.4 million compared to EUR 26.5 million first 9 months of 2013. AFI Properties also announced a net operating income (NOI) of EUR 59.8 million for the first 9 months of 2014 representing an increase of 12% in comparison first 9 months of 2013 and NOI of EUR 20.4 million for Q3 2014, an increase of 12% in comparison to Q3 2013. Total income of AFI Properties for the first 9 months of 2014 summed up to EUR 128.5 million. During Q3 the company distributed, for the first time since 2006, dividends of EUR 16 million. As of September 30th 2014, the company’s assets total leasable area, based on the proportionate share of AFI Properties, was 549,000 sqm and the company’s equity totaled EUR 599 million.
AFI Europe is a subsidiary of AFI Properties is one of the leading real estate development, management and investment companies, which is operating in Central and Eastern Europe since 1997 and is focusing on the development of large-scale commercial, residential and mixed use projects.
AFI Europe’s diversified portfolio consists of shopping malls and retail properties, business parks and large-scale residential and mixed-use developments. AFI Europe operates in Romania, Czech Republic, Poland, Germany, Bulgaria, Serbia, Hungary and Latvia.
About AFI Europe Romania:
AFI Europe operates in Romania since 2005. The company has developed and is managing “AFI Palace Cotroceni”, the biggest and most dominant shopping mall in Romania and among the biggest shopping malls in the CEE region. The project spreads over a leasable area of more than 81,000 sqm and offers to its visitors a large entertainment area with multiple leisure options and a variety of over 300 shops of local and international brands, visited by 55,000 customers per day.
In October 2013 AFI Europe inaugurated AFI Palace Ploiesti, the first and only modern shopping mall developed in the city centre of Ploiesti, following an investment of over EUR 50 million. The shopping mall offers a total gross leasable area (GLA) of 33,000 square meters spreading over two retail floors occupied by 100 national and international brands, including more than 7,000 sqm of entertainment.
Adjacent but fully integrated into AFI Palace Cotroceni shopping mall, AFI Europe Romania is currently developing AFI Park, Bucharest’s newest and most advanced Class A business Park, which has achieved 100% occupancy rate of its office spaces in the first 3 buildings. AFI Park offers 70,000 of office leasable area, currently targeted by multinational headquarters and IT&C corporations. In April 2014 AFI Europe Romania has commenced construction of AFI Park 4 & 5 office building that will offer additional 32,000 sqm of gross leasable area to the project and is planned to be delivered in Q4 2015.
In the office segment, AFI will develop AFI Business Park Bucharest, a 50,000 sqm of GLA class A business park to be located in close proximity to the J.W. Marriott hotel and the Romanian Parliament in Bucharest’s district 5. The business park will comprise of 2 low rise office buildings and one office tower, with ample green areas, a high tech/campus style environment in an urban complex with a central plaza & gardens.