AFI Palace Cotroceni shopping mall in Bucharest, the company’s largest and most important asset, generates over 80% of the net operating income on the local market. The shopping mall was valued at EUR401 million in September, up 7% compared with September last year.
“AFI Europe Romania is continuing to show improvement in the financial results. The value of our income generating assets, projects under construction and lands bank has grown significantly to EUR 670 million with an average occupancy rate in the income generating assets of 98% and a NOI of more than EUR 27 million for the first nine months of 2014. We plan to continue this momentum of development with new office buildings and new shopping malls to be developed in the near future,” said David Hay, CEO AFI Europe Romania.
Thus, the shopping mall’s net operating income totaled EUR7.4 million for the third quarter and EUR22 million for the first 9 months of 2014, representing an increase of 4% compared to the same periods in 2013. Based on first 9 months results, net operating income for 2014 is estimated to total approximately EUR30 million.
AFI’s retailer’s sales, excluding the hypermarket increased by 4.3% in the third quarter of 2014 and by 3.7% during the first 9 months of 2014 compared to the same periods last year.
In 2013, the company announced that sales of retailers in the shopping mall totaled EUR145 million in the first nine months, thus, this year, sales exceeded EUR150 million.
AFI Palace Cotroceni also showed stable results in shoppers’ footfall (visitors to the mall), with an average of 52,000 visitors per day during the first 9 months of 2014 and prior to the 4th quarter footfall results. Current occupancy rate is over 98%.
AFI Palace Ploiesti was valued at EUR66 million in September, from EU56.5 million last year. The mall’s shoppers’ footfall remains stable at 15,000 visitors per day, while current occupancy rate is 99%.
On the office segment, AFI Park 1 was valued at EUR 28 million, AFI Park 2 was valued at EUR 27.5 million.
Currently, the other 3 buildings in AFI Park are under construction, including AFI Park 3 which is planned to be completed and handed over to its tenants in December 2014 and AFI 4&5 which are planned to be completed in the fourth quarter of 2015.
AFI Europe Romania also owns plots of land in Arad and Bucharest, where it plans to develop retail and office projects.