Veranda Mall in Bucharest turns 2, announces large expansion following EUR 10 M investment

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Veranda Mall is marking two years of existence by announcing big expansion plans. Opened in November 2016, Veranda Mall in Obor area, Bucharest will accommodate new tenants in the upcoming weeks and a huge cinema and an entertainment area as of next year.

The total area of the mall after expansion will be 36,000 square meters. 15,000 sqm are outdoor spaces, with a playground for kids and an outdoor skating rink. Among the new tenants, there are BCR, Decathlon, Collin’s and World Class, whose openings are scheduled by the end of this year. The new Collin store will stretch on a 355-sqm area, following a EUR 200,000 investment. Decathlon will have 1,800 sqm and a 600-sqm outdoor playground, while Worldclass will be accommodated in a 1,500-sqm space.

As for the new cinema, it will be a premiere for the country as it is operated by CINEMAX, the largest multiplex cinema network in Slovakia, which is thus entering the local market. The cinema halls will have a total area of 2,700sqm, 12 screens, two VIP halls and Kids Lounge. The investment mounts to EUR 2.5 million.

The total investment costs of the latest expansion stand at EUR 10 million, with the Veranda Mall representatives stating that the expected incomes by 2020 are also EUR 10 million.

Veranda Mall went beyond our expectations, what we have planned has been achieved, so we have big expansion plans now. It had 7.5 millions visitors in 2017 and 16 million visitors in the past two years and we hope it will remain a proximity space,” said Andrei Pogonaru, the owner of the shopping center.

Andrei Pogonaru

Pogonaru said the new Decathlon, Worldclass, Collin’s and Cinemax openings are part of the center’s expansion and growing up stages and that they come following the strategic decision to complete the tenants’ team and to adjust to the proximity consumers’ needs.

The owner also revealed that the first part of their investment, the one in the land, has already been recovered, while the overall investment in the center and the new cinema will be recovered in about 8 to 10 years.

Overall, the Pogonaru family has invested more than EUR 100 million in Veranda Mall. The first stage had a total cost of EUR 41 M, except for the plot of land, while the total value of the investments climbed to EUR 60 million. The owners have put EUR 780,000 just in revamping the infrastructure around the shopping the center.

We expect to exceed a turnover of EUR 10 million in 2020 following the expansion and the cinema opening, which generate additional traffic and implicitly from the stores’ sales”, Pogonaru pointed out, adding they forecast a 30 percent increase in 2018 as against 2017.

As for the occupancy rate, it stands at 96 percent, but, as Andrei Pogonaru confessed, it is enough and 100% is not a target for them, as a shopping center must have extra commercial premises for rent, just in case.

Veranda Mall, the shopping centre within the Bucur Obor area in the Capital, is built on the former platform of the Prodplast factory, also owned by Pogonaru family.

Plastics manufacturer Prodplast relocated to Buftea, on the Bucharest-Targoviste road, focusing now on making biodegradable plastics. Prodplast paid over EUR 1.5 million to MJ Maillis Romania for the land and buildings where is going to relocate its production unit.

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