Anchor Group, one of the biggest real estate developers in Romania will invest EUR 10 million to renovate Plaza Romania, one of the oldest shopping malls in Bucharest, as part of a strategy to reposition the shopping center as a proximity family mall.

Renovation work is programed to take 18 months and will consist of a façade change and interior redesign as well for the shopping area. Also, a part of the mall will be converted to office space.

“After this renovation we hope to have at least 95 percent of the mall rented and to grow visitor number by at least 20 to 25 percent to about 30,000 (a day – e.n.). Compared to last year we already see a growth in visitors number of 15 percent”, Razvan Gaita, CEO of Anchor Group said in a press conference.

Now, approximately 65 percent of the mall's 40,000 sqm gross leasable area (GLA) is occupied, compared to 55 percent this time last year. Clothing retailer Time Out opened a shop in Plaza Romania this spring and wellness group World Class doubled its leased area, according to the company.

Also, retailers such as Koton and LC Waikiki will open shops in the shopping center.
"Our target is to reposition as a family mall, in order to differentiate from the competition in the area. We will be addressing to our neighbors in Drumul Taberei, Militari and Crangasi. We will have more spaces for relaxation, especially interactive software spaces”, Gaita said.

Plaza Romania started to lose visitors and business after AFI Palace Controceni mall was opened less than a kilometer away. AFI Palace, owned by Israeli group AFI Europe, is almost twice as big as Plaza Romania, with 76,000 square meters GLA.

Anchor Group representatives say that the shopping mall will be opened to public during the whole period of the modernization works, which will be coordinated by the company’s specialists and not by an outside general contractor.

Anchor Group also plans to start modernizing its other mall, Bucharest Mall in Vitan area, which is the oldest shopping center in Bucharest (15 years old). Renovation work will  probably start in June. The total investments for the two malls amount to EUR 25 million and financing will be provided by the main shareholder in Anchor Group, Turkish FIBA Group.

Andrei Chirileasa, andrei@romania-insider.com

(photos by Anchor Group, Andrei Chirileasa)