BUCHAREST RETAIL MARKET 2014

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BUCHAREST RETAIL MARKET 2014

BUCHAREST RETAIL MARKET 2014

Welcome to DTZ Echinox ‘Bucharest Retail Market 2014’. This guide’s purpose is to provide a clear picture of the retail market in Bucharest, offering data on modern retail properties across the city, along with demographic and economic information.

The modern retail stock in Bucharest is of 902,000 sq. m, comprising 11* shopping centers, 7 retail parks and 5 commercial galleries. Shopping centers account for 54%, while retail parks and commercial galleries represent 35% and 11% from total retail stock. Compared with the modern retail stock outside Bucharest, where most of the space was delivered between 2006 – 2008, in Bucharest more than 50% from the total retail stock– approximately 55% - was delivered between 2008 – 2010.

We have analyzed Bucharest by district and we have used the same information for all districts, in order to facilitate comparison.

Currently there are two shopping centers under construction in Bucharest: Mega Mall, with 72,000 sq. m of rentable area, developed in the 2nd District scheduled for delivery in 2015 and Park Lake Plaza, developed in the 3rd District, with a rentable area of 69,000 sq. m, expected to be delivered in 2016. Another modern retail scheme currently under construction is Auchan Tricodava, commercial gallery located in the 6th District that will have upon completion in 2015 approximately 21,000 sq. m of rentable area.

Structure of Bucharest’s modern retail stock

shop units and parking places for each modern retail development;

1,200,000

 Information on prime rents;

11%

1,000,000 SC

 A list of modern retail schemes in operation by district. 35%

902,000 sq. m

Retail Parks

800,000 600,000 400,000

54% Commercial Galleries

200,000

Existing stock (sq. m)

Source: DTZ Echinox

Source: DTZ Echinox

New supply (sq. m)

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

0

2000

We hope you will find the publication interesting and we encourage you to access the wide variety of DTZ publications.

Modern retail stock in Bucharest 2000 - 2016

2006

 Information such as rentable surface, delivery date, major tenants,

*Including also Fashion House Outlet

2005

unemployment rate & income;

INTRODUCTION

2004

 Statistics for each district analyzed such as population,

2003

the main capitals in CEE;

Headline rent achieved for units of 100 sq. m in prime shopping centres in Bucharest is between € 50 - 70/ sq. m/ month, while for secondary shopping centers the headline rents for units of same size is between € 25 – 45/ sq. m/ month.

2002

 Bucharest economic environment, including a brief comparison with

2001

The guide includes, but is not limited to:

BUCHAREST RETAIL MARKET 2014

BUCHAREST RETAIL MARKET 2014 New supply 2015 – 2016 in CEE’s main capitals:

Bucharest

Warsaw

Prague

Budapest

largest city

2014 Modern retail stock (sq. m)

2015 Pipeline (sq. m)

2016 Pipeline (sq. m)

2016 Modern retail density / 1,000 inhabitants

1,750,000

1,200

1,500,000

1,000

Bratislava 1,250,000

2,000,000

800

1,000,000 600

1,500,000

750,000 400

500,000

1,000,000

200

250,000 500,000 0 0 Source: DTZ Echinox

Population

The city’s contribution to Romanian GDP last year was of 23%, not surprisingly since Bucharest is the most developed in the country and one of the main industrial centers and transportation hubs of Eastern Europe. Bucharest has a modern retail stock accounting for more than 30% of Romania’s total square meters of modern retail space. The first shopping center and commercial galleries in the country were delivered in Bucharest and presently is the only city in Romania that has a high end retail avenue. However, the city continues to be behind CEE’s main capitals when it comes to modern retail stock density per 1,000 inhabitants. As a direct consequence, Bucharest is one of the hottest capital city in CEE in terms of retail construction works, with a total volume of 187,000 sq. m planned for delivery in the next two years.

OVERVIEW

0 Bucharest

Budapest

Prague

Warsaw

Source: DTZ Echinox

Major international clothing retailers no. of stores in CEE’s main capitals:

Warsaw

Prague

1999

2001

2004

2004

9

5

5

7

Warsaw

Prague

2003

2003

2005

2011

13

14

16

11

Source: DTZ Echinox

Budapest Bucharest

Warsaw

Prague

Year of entry

2001

1999

2002

2009

Number of stores

7

10

11

6

Warsaw

Prague

Year of entry

1998

1998

1999

2007

Number of stores

5

11

10

5

Budapest Bucharest

Budapest Bucharest

Budapest Bucharest

sq. m

Bucharest is the largest capital city in the CEE region and the in the European Union by population.

6th

BUCHAREST RETAIL MARKET 2014

BUCHAREST RETAIL MARKET 2014

MAJOR INDICATORS 2014

MODERN RETAIL STOCK BY DISTRICT

Population*

Age structure 15 - 65 years* Unemployment rate** Average individual net income (€)*** Average family net income (€)***

1,883,425

2.04%

2*

0

0

0

0

2

45,500

45,500

3*

4

131,000

1

45,000

0

0

176,000

4

1

82,000

2

71,000

0

0

153,000

5

1

26,000

1

27,000

1

14,000

67,000

6*

3

138,000

1

51,500

2

42,500

232,000

Total

11

481,000

7

319,000

5

102,000

902,000

611 1,019

*Districts with modern retail schemes currently UC

RETAIL SPACE & MARKET CONDITIONS 2014 No. of shopping centers in operation

11

No. of retail parks

7

No. of commercial galleries

5

Prime shopping rents*

902,000 479

OVERVIEW

Source: DTZ Echinox

1st District

228,500 sq. m

2nd District

232,000 sq. m 6th District

60

Big box retailers

Carrefour, Cora, Auchan, Metro, Selgros, Kaufland, Kingfisher, BauMax, Hornbach, Mr. Bricolage, Leroy Merlin, Dedeman, Arabesque, Praktiker, Mobexpert, Ikea, Kika, Jumbo

*Headline rent level achieved in dominant shopping centres for units of approximately 100 sq m

5th District 67,000 sq. m

45,500 sq. m

3rd District

60 - 70

No. of big boxex

Source: DTZ Echinox

Commercial Galleries Total no. of Total GLA Commercial Galleries sq. m) 0 0

DISTRICT 1

***Retail Metrics DTZ Echinox 2014

Total modern retail stock density (sq. m) (per 1,000 inhabitants)

Retail parks Total no. of Total GLA Retail Parks (sq. m) 2 124,500

73%

*National Institute of Statistic **National Agency for Employment (ANOMF) Feb 2014

Total modern retail space (sq. m)

Shopping centers Total no. Total GLA of SC (sq. m) 2 104,000

4th District 153,000 sq. m

176,000 sq. m

TOTAL (sq. m) 228,500

1ST DISTRICT MODERN RETAIL STOCK

1ST DISTRICT MODERN RETAIL STOCK

MAJOR INDICATORS 2014

MODERN RETAIL DEVELOPMENTS

Population* Age structure 15 - 65 years*

Name

225,453

1 Baneasa Shopping City*

69%

Address 42 D Bucuresti - Ploiesti Road

GLA sq. m Shop units Parking Year of Opening 66,000

250

2000

2008

Owner Baneasa Developments

Major tenants: Inditex, H&M, Peek & Cloppenburg, Reserved, Noriel, Media Galaxy, Grand Cinema Digiplex

Unemployment rate** Individual net income €*** Family net income €***

1.20%

2

797 1,177

3 Colosseum Retail Park

71,500

2000

2008

Carrefour, Mobexpert, Ikea, Kingfisher

284 Chitilei Road

53,000

50

2370

2011

Nova Imobiliare

38,000

143

1200

2013

Raiffeisen Evolution

Major tenants: Carrefour, Leroy Merlin, Altex, JYSK

4

***Retail Metrics DTZ Echinox 2014

st 1

RETAIL SPACE & MARKET CONDITIONS 2014 No. of shopping centers in operation

2

No. of retail parks

2

DISTRICT

Promenada

246 B Barbu Vacarescu St.

Major tenants: Billa, Inditex, Peek & Cloppenburg, New Yorker, H&M, Humanic, Hervis, C&A, Altex, Flanco *Commercial gallery Feeria also included Source: DTZ Echinox

228,500

Total modern retail stock density (sq. m) (per 1,000 inhabitants)

1,014

Prime shopping rents*

65 - 70

No. of big boxex

11

Big box retailers

Carrefour (2), Metro, Selgros, Kaufland, Brico Dépôt, BauMax, Leroy Merlin, Arabesque, Mobexpert, Ikea

*Headline rent level achieved in dominant shopping centres for units of approximately 100 sq m Source: DTZ Echinox

44 D Bucuresti - Ploiesti Road

Major tenants: Mobexpert, Ikea, Bricostore, Carrefour

*National Institute of Statistic **National Agency for Employment (ANOMF) Feb 2014

Total modern retail space (sq. m)

Baneasa Retail Park

1

4

2ND DISTRICT MODERN RETAIL STOCK

2ND DISTRICT MODERN RETAIL STOCK

MAJOR INDICATORS 2014

MODERN RETAIL DEVELOPMENTS

Population* Age structure 15 - 65 years* Unemployment rate**

345,370 1

73%

2 589

Family net income €***

927

Address

GLA sq. m

Shop units

Parking

Year of Opening

Owner

Mega Mall*

3-5 Pierre de Coubertin Blvd.

72,000

200

2,200

2015

NEPI

32,000

55

2,200

2003

Catinvest & Cora

13,500

7

300

2012

Intercora

Major tenants: Carrefour, Inditex, Cinema City, H&M, C&A, Altex

1.02%

Individual net income €***

Name

Esplanada

20 Vergului St.

Major tenants: Cora, Flanco, Noriel, Mobexpert

3 Intercora Mihai Bravu

*National Institute of Statistic **National Agency for Employment (ANOMF) Feb 2014 ***Retail Metrics DTZ Echinox 2014

Major tenants: Kaufland, Domo, Takko, Deichmann, DM, Lem's

nd 2

RETAIL SPACE & MARKET CONDITIONS 2014 No. of shopping centers U/C

1

No. of commercial galleries

2

Total modern retail space (sq. m) Total modern retail stock density (sq. m) (per 1,000 inhabitants) Prime shopping rents*

DISTRICT

*Under construction Source: DTZ Echinox

45,500 132 50 - 60

No. of big boxex

11

Big box retailers

Carrefour, Cora, Kaufland (3), Selgros, Parktiker, Brico Dépôt, Dedeman Mobexpert (2)

*Headline rent level achieved in dominant shopping centres for units of approximately 100 sq m Source: DTZ Echinox

319 Mihai Bravu Blvd.

1

2

3

3RD DISTRICT MODERN RETAIL STOCK

3RD DISTRICT MODERN RETAIL STOCK

MAJOR INDICATORS 2014

MODERN RETAIL DEVELOPMENTS

Population* Age structure 15 - 65 years*

73%

Unemployment rate**

1.3%

Individual net income €***

580

Family net income €***

982

1

2

Liviu Rebreanu St.

GLA sq. m Shop units

Parking

Year of Opening

Owner Sonae Sierra/ Caelum Development/ Carrefour

69,000

200

2,700

2016

51 G Theodor Pallady St.

45,000

50

2,500

2010

Metro Imobiliare Investment

44,000

200

500

Refurbished in 2000

Nova Trade

40,500

140

1,850

1999

Anchor Group

120

1,700

2008 2011 Refurbished

Aberdeen Immobilien

76

200

2010

Cocor SA

Major tenants: Auchan, Metro, Decathlon, Jumbo

3 Unirea Shopping Center

1 Unirii Square

Major tenants: Mega Image, Inditex, H&M, Flanco, Altex

rd 3

RETAIL SPACE & MARKET CONDITIONS 2014 No. of shopping centers in operation

4

No. of shopping centers U/C

1

No. of retail parks

1

Prime shopping rents*

Park Lake Plaza*

Pallady Retail Park

**National Agency for Employment (ANOMF) Feb 2014 ***Retail Metrics DTZ Echinox 2014

Total modern retail stock density (sq. m) (per 1,000 inhabitants)

Address

Major tenants: Carrefour, Inditex, H&M

*National Institute of Statistic

Total modern retail space (sq. m)

Name 385,439

DISTRICT

4

Bucuresti Mall

Major tenants: Mega Image, Inditex, H&M, Media Galaxy, Hollywood Multiplex

5

Iris Shopping Center

Cocor Store

6

No. of big boxex

10

Big box retailers

Carrefour, Auchan (3), Kaufland, Metro, Mr. Bricolage, Arabesque, Parktiker, Jumbo

*Headline rent level achieved in dominant shopping centres for units of approximately 100 sq m Source: DTZ Echinox

36,500

29 - 33 I.C. Bratianu Blvd.

10,500

Major tenants: Terranova, Billa,Steilmann, Romanian DesignersGallery *Under construction Source: DTZ Echinox

2 45 - 50

33 A 1 Decembrie 1918 Blvd.

Major tenants: Auchan, C&A, H&M, CCC, New Yorker, Deichmann, Flanco

176,000 458

55-59 Vitan Avenue

3

4

4TH DISTRICT MODERN RETAIL STOCK

4TH DISTRICT MODERN RETAIL STOCK

MAJOR INDICATORS 2014

MODERN RETAIL DEVELOPMENTS

Population*

Name

287,828

Age structure 15 - 65 years*

74%

Unemployment rate**

1.4%

1

Sun Plaza

Address 391 Vacaresti Avenue

GLA sq. m

Shop units

Parking

Year of Opening

Owner

82,000

170

2,000

2010

S IMMO AG

800

2008

Revetas Capital

2,000

2009

Euroinvest Intermed

Major tenants: Flanco, Cora, Inditex, H&M, New Yorker, C&A, Cinema City

Individual net income €*** Family net income €***

2

630

Vitantis

7A Vitan - Barzesti Road

39,000

56

Major tenants: Carrefour, Intersport, Praktiker, Takko, Kenvelo, Domo, Casa Rusu

1,046

3

Grand Arena

12-18 Metalurgiei Blvd.

32,000

180

*National Institute of Statistic

Major tenants: Carrefour, Flanco World, Decathlon, Intersport, Deichmann, Sephora

**National Agency for Employment (ANOMF) Feb 2014 ***Retail Metrics DTZ Echinox 2014

Source: DTZ Echinox

th 4

RETAIL SPACE & MARKET CONDITIONS 2014 No. of shopping centers in operation

1

No. of retail parks

2

Total modern retail space (sq. m) Total modern retail stock density (sq. m) (per 1,000 inhabitants) Prime shopping rents*

153,000 532 40 - 45

No. of big boxex

11

Big box retailers

Carrefour (2), Cora (2), Auchan, Metro, Kaufland, Selgros, BauMax, Hornbach, Dedeman

*Headline rent level achieved in dominant shopping centres for units of approximately 100 sq m Source: DTZ Echinox

DISTRICT 1

2

3

5TH DISTRICT MODERN RETAIL STOCK

5TH DISTRICT MODERN RETAIL STOCK

MAJOR INDICATORS 2014

MODERN RETAIL DEVELOPMENTS

Population* Age structure 15 - 65 years* Unemployment rate** Individual net income €*** Family net income €***

Name

271,575 1

75%

Vulcan Value Center

Address 88 Scriitor Mihail Sebastian St.

GLA sq. m

Shop units

Parking

Year of Opening

Owner

27,000

50

900

2014

NEPI

120

600

2008

Greek Bank Consortium

40

980

2012

Cora

Major tenants: Carrefour, C&A , H&M, Takko, New Yorker, Hervis, Domo, Noriel, JYSK

1.15% 546

2

Liberty Center

151-171 Progresului St.

26,000

1,031 Major tenants: Billa, Adidas, Deichmann, CCC, Kenvelo, Leonardo, Altex

*National Institute of Statistic

3

**National Agency for Employment (ANOMF) Feb 2014 ***Retail Metrics DTZ Echinox 2014

th 5

RETAIL SPACE & MARKET CONDITIONS 2014 No. of shopping centers in operation

1

No. of retail parks

1

No. of commercial galleries

1

Total modern retail space (sq. m) Total modern retail stock density (sq. m) (per 1,000 inhabitants) Prime shopping rents*

67,000 247 25 - 30

No. of big boxex

3

Big box retailers

Carrefour, Cora, Kaufland

*Headline rent level achieved in dominant shopping centres for units of approximately 100 sq m Source: DTZ Echinox

Cora Alexandriei

152 Alexandriei St.

Major tenants: Cora, Altex

DISTRICT

Source: DTZ Echinox

2

3

14,000

6TH DISTRICT MODERN RETAIL STOCK

6TH DISTRICT MODERN RETAIL STOCK

MAJOR INDICATORS 2014

MODERN RETAIL DEVELOPMENTS

Population* Age structure 15 - 65 years*

367,760

Name 1 AFI Palace Cotroceni

74%

Address

GLA sq. m

Shop units

Parking

Year of Opening

Owner

4 Vasile Milea Blvd.

76,000

250

2,500

2009

AFI Group

2009

Atrium European RE

Major tenants: Auchan, Inditex, H&M, Sephora, C&A, New Yorker, Intersport, Cinema City, IMAX

Unemployment rate**

1.05% 2

Individual net income €*** Family net income €***

589 1,032

3

Plaza Romania

4

RETAIL SPACE & MARKET CONDITIONS 2014 No. of shopping centers in operation

3

No. of retail parks

1

No. of commercial galleries

2

No. of commercial galleries U/C

1

Total modern retail space (sq. m)

232,000 630 65 - 70

No. of big boxex

14

Big box retailers

Carrefour (2), Cora, Auchan (2), Kaufland, Metro, Selgros, Brico Depot, Arabesque, Dedeman, Parktiker, Kika, Mobexpert

*Headline rent level achieved in dominant shopping centres for units of approximately 100 sq m Source: DTZ Echinox

51,500

100

2,500

26 Timisoara Blvd.

48,000

150

2,000

2004

Anchor Group

Major tenants: Mega Image, World Class, Inditex, H&M, Mango, Adidas, Nike, Sephora

**National Agency for Employment (ANOMF) Feb 2014 ***Retail Metrics DTZ Echinox 2014

Prime shopping rents*

546-560 Iuliu Maniu Blvd.

Major tenants: Auchan, Decathlon, C&A, Imaginarium, New Yorker. Humanic, Hervis, Leonardo, Deichmann, Media Galaxy, Praktiker

*National Institute of Statistic

Total modern retail stock density (sq. m) (per 1,000 inhabitants)

Militari Retail Park

th 6

DISTRICT

Cora Lujerului

19 Iuliu Maniu Blvd.

23,500

45

1,700

2005/2008

Cora

25 Brasov St.

21,000

N/A

2,000

2015

Immochan

210-210B Splaiul Independentei

17,000

50

1,400

2003

Catinvest & Carrefour

2,700

2008

Liebrecht & WooD

Major tenants: Cora,

Auchan Tricodava*

5

Major tenants: Auchan

6

Carrefour Orhideea

Major tenants: Carrefour, Kenvelo, Lee Cooper, Deichmann, Takko, Time Out, Flanco

7 Fashion House Outlet

A1 Highway Entrance

14,000

60

Major tenants: Puma, Otter, Stefanel, Lee Cooper, Adidas, Franco Feruzzi *Under construction Source: DTZ Echinox

1

3

6

BUCHAREST RETAIL MARKET 2014

BUCHAREST RETAIL MARKET 2014 MAJOR INDICATORS 2014

?

1st Shopping Center in Bucharest

Bucuresti Mall Delivered in 1999

3rd District

?

Largest Shopping Center in Bucharest

Sun Plaza With 82,000 sq. m GLA

4th District

Largest Retail Park in Bucharest

Baneasa Retail Park With 71,500 sq. m GLA

1st District

The district with the highest density of retail spaces (sq. m) / 1,000 inhabitants

1st District With 1,013 sq. m

? ?

?

The district with the lowest density of retail spaces (sq. m) / 1,000 inhabitants

2nd District With 132 sq. m

2nd District

?

2nd, 3rd & 6th District

?

The district with the largest retail stock in Bucharest

6th District With 232,000 sq. m

6th District

Source: DTZ Echinox

Age structure 15 -65 years*

Unemployment %**

Individual net income (€)***

Family net income (€)***

1

225,453

69%

1.20%

797

1,177

2

345,370

73%

1.02%

589

927

3

385,439

73%

1.30%

580

982

4

287,828

74%

1.40%

630

1,046

5

271,575

75%

1.15%

546

1,031

6

367,760

74%

1.05%

589

1,032

*National Institute of Statistic

2nd, 3rd & 6th District

Districts with more than 2 Shopping Centers

Population*

1st District

Districts with modern retail schemes UC

?

District

3rd & 6th District

3rd & 6th District

CONCLUSIONS

**National Agency for Employment (ANOMF) Feb 2014 ***Retail Metrics DTZ Echinox 2014

RETAIL SPACE & MARKET CONDITIONS 2014 District

SC

Retail Parks

Commercial Galleries

Modern retail space (sq. m)

Retail density (sq. m)/ 1,000 inhabitants

Prime SC Rents (€)

Big boxes

1

2

2

-

228,500

1,013

65 - 70

10

2

-

-

2

45,500

132

50 - 60

11

3

4

-

1

176,000

458

45 - 50

11

4

1

2

-

153,000

532

40 - 45

11

5

1

1

1

67,000

247

25 - 30

3

6

3

2

1

232,000

630

65 - 70

14

Source: DTZ Echinox

DEFINITIONS COMMERCIAL GALLERY – A modern retail scheme with minimum 5,000 sq. m of GLA, anchored by a hypermarket with a rentable area that exceeds the total rentable area of the retail scheme;

SHOPPING CENTER – A modern retail scheme with a commercial gallery of minimum 5,000 sq. m GLA that has a rentable area exceeding the hypermarket / supermarket’s rentable area; RETAIL PARK – Modern retail schemes with over 5,000 sq. m GLA, representing other than shopping center or commercial gallery retail formats.

DISCLAIMER This report should not be relied upon as a basis for entering into transactions without seeking specific, qualified, professional advice. Whilst facts have been rigorously checked, DTZ Echinox can take no responsibility for any damage or loss suffered as a result of any inadvertent inaccuracy within this report. Information contained herein should not, in whole or part, be published, reproduced or referred to without prior approval. Any such reproduction should be credited to DTZ Echinox. © DTZ Echinox October 2014

DTZ Echinox General Contact Banu Antonache Office Center, 40-44 Banul Antonache Street, 3rd Floor Bucharest, district 1, Romania Phone: +4021 310 3100 Facsimile: +4021 313 9010 www.dtz.com/ro / www.dtzresearch.ro

DTZ Echinox Contacts Management

Retail Agency

Oana Iliescu

Bogdan Marcu

Phone: +4021 310 3100

Phone: +4021 310 3100

Email: [email protected]

Email: [email protected]

Investment

Research

Razvan Sin

Mihaela Galatanu

Phone: +4021 310 3100

Phone: +4021 310 3100

Email: [email protected]

Email: [email protected]

© DTZ Echinox October 2014