Real estate developer AFI Europe, controlled by Israeli billionaire Lev Leviev, has officially announced that next year plans to start the construction of its first residential project in Romania on the former Laromet platform in Bucurestii Noi neighborhood.
“(…) We expect next year to start our first residential project in Romania, AFI City, located in Bucurestii Noi. We keep searching for new opportunities similar to the project in Brasov”, David Hay, CEO AFI Europe Romania commented, a press release informs on Monday.
AFI Europe Romania published its Q3 and first nine months of 2016 financial results, generating a Net Operating Income (NOI) from its income producing assets in Romania of EUR 12 million in Q3 and more than EUR 34 million during the first nine months of the year, representing 17 percent for Q3 and 14 percent for nine months higher results compared to the same periods in 2015.
AFI Europe Romania commercial properties and projects under development were valued on September 30 reaching over EUR 800 million, representing an increase of 10 percent compared to last year.
“The rise in the value of the assets reflects not only the improvement in the Romanian economy, but mainly the team work of AFI in managing the different assets, both in the development of new projects and the day to day management of the existing assets. In order to maintain and even to enhance the growth of AFI Europe Romania, we have commenced this year the development of AFI Tech Park, a 50,000 sqm office project on Progresului Boulevard in Bucharest, and plan to commence development of AFI Brasov, consisting of a 40,000 sqm GLA shopping mall and 25,000 sqm GLA offices,” Hay added.
AFI Properties, the parent company of AFI Europe, completed this year office buildings AFI Park 4&5 in Bucharest (32K GLA). In the office park, 70,000 GLA sqm of the office buildings AFI Park 1-5 are close to 100 percent occupancy rate.
Higher results for AFI Cotroceni and AFI Cotroceni
AFI Cotroceni, the largest Shopping Mall in Romania, generated a NOI of more than EUR 25 million in 9 months of 2016, representing 10 percent higher results compared to the first nine months of 2015. As of September 30 AFI Cotroceni was valued at EUR 467 million an increase of 7.6 percent compared to last year. Currently the shopping mall is ongoing expansion works adding 6,500 sqm of GLA following which a new valuation process shall be performed.
AFI Cotroceni retailer’s sales (Turn-Over) increased by 12 percent compared to the same period last year, resulting in EUR 170 million in the first nine months of 2016. Footfall (visitors) to the mall increased by 5.5 percent and the occupancy rate is 99 percent.
AFI Ploiesti results continue to show significant increase in all parameters. Retailer’s sales rose by 16 percent in nine months of 2016 and NOI increased by 4 percent, to more than EUR 3.3 million compared to the same period last year. Current occupancy rate of the shopping mall in Ploiesti is 99 percent.
AFI Ploiesti is finalizing these days’ expansion works including new shops of Deichmann and Starbucks that have recently been opened. The mall maintained its value of EUR 67.5 million.