Founded by former co-founders and managers of NEPI, Prime Kapital is now one of the most active real estate developers in Romania with residential projects in Bucharest, Iasi and Ploiesti and plans for expansion in Cluj-Napoca, aside from the retail developments in major cities across the country. Maggie Kitshoff, Partner Prime Kapital (in opening picture), who leads the company’s residential division, talks in this interview about the company’s strategy and development plans.

“Our aim has been to cater to clients in the mid-market segment by delivering premium apartments at prices that are both affordable and highly competitive. We go beyond simply selling square meters; our entire approach revolves around providing buyers with turnkey services, car-free environments, and high-quality design and materials,” Maggie Kitshoff says.

“Our projects are deeply influenced by the mindset and focus typically found in developments across Scandinavian countries. We prioritize quality throughout every aspect of our offerings, ensuring it goes beyond mere surface-level features. This includes thoughtfully planned parking infrastructure, green spaces, community areas, and long-term policies aimed at preserving these elements for the benefit of the wider community. Our clients place immense value on these aspects,” she explains.

After completing nearly 1,600 new homes in Bucharest, Iasi and Ploiesti, Prime Kapital is preparing to launch even bigger projects in Bucharest and Cluj-Napoca. Like some of its existing projects – Marmura Residence in Bucharest and Silk District in Iasi – the new developments will be located on former urban industrial sites in Bucharest and in Cluj-Napoca.

“At IMGB, we’re planning to develop approximately 3,150 modern apartments on a spacious former industrial platform, designed as a car-free, green haven with direct access to a large new retail centre that will be developed simultaneously. In addition, near downtown Cluj-Napoca, we are busy zoning 17.1 hectares for a mixed-use project. It will feature around 1,460 apartments seamlessly connected to the retail, parking, storage, and office spaces, promising a dynamic community experience in a unique mixed-use project.”

Read the full Q&A interview below to learn more about:

• Prime Kapital’s ongoing projects
• The development approach
• Features and amenities included in the projects
• Clients’ preferences when it comes to buying new homes
• Market challenges and sales results

Over the last six years, Prime Kapital has become one of the most active developers in Romania in the residential segment. How many residential projects are you currently working on and what is their status?

Maggie Kitshoff: We've completed nearly 1,600 new homes spread across three cities. Our projects include significant developments in the Capital and Iasi, Romania's second-largest city.

In 2022, we delivered the entire Marmura Residence, now a community consisting of 458 apartments, boutique offices, and a neighborhood retail offering, including a direct rental offering.

In addition to completing the initial phase of Avalon Estate, consisting of 352 villas, townhouses, and apartments, we've also taken care of essential infrastructure like basements, parking facilities, roads, and green spaces. We're now gearing up to launch sales for almost 200 new apartments, with almost 75% of all units featuring car-free frontage, designed to face tranquil green alleys and pedestrian-friendly roads.

At Silk District (Iasi), we've successfully completed three major development phases and have recently launched the third residential phase, which will introduce 340 high-quality apartments to the community, in addition to the almost 700 completed units and the first completed phase of the newest and most modern Class A offices in the city. Moreover, the first phase of Pleiades Residence (Ploiesti) was completed, adjacent to the Prahova Value Centre also developed and completed in 2021.

Our projects not only offer modern living spaces but also provide a blend of convenience and natural beauty. For instance, Avalon Estate borders a natural lake where wildlife (ducks, foxes, birds) sightings are common, adding to the charm and security of the area.

What is your flagship project in Romania and what makes this project stand out in your portfolio and on the local residential market?

Maggie Kitshoff: Our projects really stand out, thanks to our meticulous planning and dedication to creating clean, open, and light-filled spaces. We're all about setting a new standard of living while ensuring each project has its own distinct character. 

Take Avalon Estate, for example. It's truly one-of-a-kind. With its vast green spaces and low-density buildings, it's going to be a tough act to follow at similar prices. We're talking about buildings with just 3-4 apartments per floor, creating an intimate atmosphere that's usually reserved for premium developments, but at current average prices, of 2,300 per net usable area, it sells in the upper mid-range, whilst the product and environment is premium. Both our projects in Bucharest received significant acknowledgment from the Romanian Order of Architects.

Then there's Silk District, our biggest and most ambitious mixed-use project yet. Not only does it boast top-notch design, aesthetics, and quality, but it also has a significant impact on the wider community. And let's not forget about the green areas and car-free leisure spaces, covering a whopping 40% of the entire site and again, bringing a fresh architectural style to the city. 

What is the profile of the clients you target with your residential projects?

Maggie Kitshoff: Our aim has been to cater to clients in the mid-market segment by delivering premium apartments at prices that are both affordable and highly competitive. We go beyond simply selling square meters; our entire approach revolves around providing buyers with turnkey services, car-free environments, and high-quality design and materials. Our apartments, are known for good light, clean interiors, high ceiling volumes, quality facades, and well-coordinated infrastructure.

Our projects are deeply influenced by the mindset and focus typically found in developments across Scandinavian countries. We prioritize quality throughout every aspect of our offerings, ensuring it goes beyond mere surface-level features. This includes thoughtfully planned parking infrastructure, green spaces, community areas, and long-term policies aimed at preserving these elements for the benefit of the wider community. Our clients place immense value on these aspects.

Ultimately, our homes are where we spend our lives, and in Europe, we often reside in densely populated communities. These communities aren't just about buildings; they're about people who share common values. We recognize the importance of fostering such environments and strive to reflect these values in all our projects and will continue to do so, and find better and more efficient solutions to achieve and manage this. 

Nowadays, consumers are also interested in staying connected to nature and living in sustainable dwellings. How do you address this in your projects?

Maggie Kitshoff: The Prime Kapital residential brand has earned a reputation for prioritizing and delivering green, car-free spaces. Our buildings are meticulously designed to be well-insulated, optimally oriented for natural light, and overall, environmentally conscious.

What sets us apart is our commitment to sustainability, evident in our choice of locations. Many of our projects are situated on repurposed industrial sites, showcasing our dedication to sustainability right at the core of our approach. It's not just about creating living spaces; it's about creating communities that harmonize with their surroundings and minimize environmental impact.

What similarities and differences do you see between your clients in Bucharest and those in regional cities where you have projects under development?

Maggie Kitshoff: Many of our clients are primarily seeking homes for themselves, intending to reside in our neighborhoods. They're typically individuals who prioritize lifestyle considerations and adopt a long-term perspective toward their surroundings.

Our goal is to craft well-rounded environments that provide safe havens for both children and residents, with minimal pollution and traffic disruptions. To achieve this, we place a strong emphasis on creating high-quality green spaces and recreational areas. Additionally, we strive to integrate traffic solutions seamlessly into the environment.

Seeing these aspects of our projects come to fruition as developments take shape is immensely gratifying. It underscores our commitment to not just building homes, but nurturing thriving communities where residents can truly flourish.

Do you have other projects in the pipeline in the residential segment?

Maggie Kitshoff: We've got some exciting plans in motion. At Silk District, a new residential phase will be launched in Spring 2025 (Phase 4), bringing a vibrant residential concept inspired by Copenhagen's green courtyards to the project. With record sales already achieved in only one month after launch in Phase 3, we are excited to continue to see this community grow. 

At IMGB, we’re planning to develop approximately 3,150 modern apartments on a spacious former industrial platform, designed as a car-free, green haven with direct access to a large new retail centre that we will develop simultaneously. 

In addition, near downtown Cluj-Napoca, a mixed-use project spanning 17.1 hectares is also in planning on a large industrial land plot. It will feature around 1,460 apartments seamlessly connected to the retail, parking, storage, and office spaces, promising a dynamic community experience in a unique mixed-use project. 

Is the current context in the Romanian residential market encouraging new investments or not?

Maggie Kitshoff: Yes, the residential market, despite challenges in recent years, VAT changes, high inflation, and interest rates, does remain robust, and a shift in focus to more sustainable energy solutions, zero energy buildings in addition to improved affordability. 

We continued to see satisfactory results, with sales and rent levels often exceeding 90% at the time of completion and overall sales results in excess of 86% across all buildings currently in construction.

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