Romanians spend more in AFI Palace malls, owner posts higher revenues
The 300 retailers in AFI Palace Cotroceni, one of the top three malls in Romania’s capital Bucharest, increased their sales by 9.3% in the first quarter of 2015 compared to the same period of last year. Tenants in AFI Palace Ploiesti, the other shopping center that Israeli group AFI Europe owns in Romania, also had 21.7% higher sales.
These results show that Romanians have increased their shopping budgets compared to last year.
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AFI Palace Cotroceni, which is currently 99% occupied, had a net operating income (NOI) of EUR 7.4 million, 1.3% higher than in the first three months of 2014, the mall’s owner AFI Europe Romania announced in a press release.
AFI Palace Cotroceni is AFI Europe’s most valuable asset in Romania. The mall, which has a gross leasable area (GLA) of some 81,000 sqm, had 52,000 visitors per day, on average, in 2014 and was valued at EUR 401 million, at the end of September 2014.
AFI Europe’s other mall, which is located in Ploiesti, had over EUR 1 million NOI in the first quarter. It has a GLA of 33,000 sqm and is also 99% occupied. AFI Europe invested EUR 50 million in this project.
AFI Europe Romania saw its net operating income increase by 8.1% in the first quarter of 2015, to almost EUR 9 million. The increase was mainly generated by its two new office buildings AFI Park 2 and AFI Park 3, which were inaugurated in the past months. The office buildings are located near the AFI Palace Cotroceni mall and are part of an office compound that includes five buildings with a total leasable surface (GLA) of over 70,000 sqm.
“The net operational income of our revenue generating properties in Romania increased by 8%, with an average occupancy rate of 98%. The AFI Park 2 and AFI Park 3 office buildings have contributed to the net revenues as will AFI Park 4&5, which we will finalize by the end of this year,” said David Hay, CEO AFI Europe Romania.
He added that the company plans to start new projects this year, such as the AFI Business Park office compound and a mixed project in Bucurestii Noi, in Northern Bucharest.
AFI Europe is part of Israeli group AFI Properties, controlled by billionaire Lev Leviev.
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Andrei Chirileasa, andrei@romania-insider.com
