This is not first the time the malls owned by Anchor Grup, part of Turkey’s FIBA group, have been expanded, though. The substantial growth of the retail market over the past decade made adjustments necessary on an increasingly competitive market.
Ali Ergun Ergen, in charge of Anchor Grup when the two malls opened in 1999 (Bucuresti Mall in Vitan, south-central Bucharest) and 2004 (Plaza Romania, west of the city), returned to his former company after supervising the development of the Baneasa Shopping City in northern Bucharest for six years. His plans are to bring the two malls back to the top positions they once held in Romania’s capital city retail sector.
The largest malls in Bucharest are Baneasa Shopping City and AFI Palace Cotroceni, completed in 2008 and 2009, which are newer and have enough space to accommodate a wider range of stores and provide more entertainment options.
Ergen devised the extension plan precisely to be able to offer more in Bucuresti Mall and Plaza Romania. The investment in the two malls has already been recouped. Anchor Grup officials did not provide details about the development plans, which are to be made public during a press conference scheduled for Wednesday.
“The two projects will be expanded by 20%. The extension of Bucuresti Mall will be built in the back of the building, close to the gas station, where I’ve learnt they’re going to a build a patio, too. Talks with potential tenants are already in progress,” a retail market source said.
In his six years with Baneasa Shopping City, Ergun Ergen got to meet a series of tenants not yet present in Anchor Grup’s malls. Bucuresti Mall’s current lettable area is about 38,000 square meters, while Plaza Romania’s is some 47,000 square meters, therefore the additional areas might be of 7,000 square meters and 9,000 square meters.
Competition in recent years and the economic crisis have hurt the business of the two malls. Plaza Romania posted EUR12.4 million revenue in 2011, down 11% on 2010 and 36% lower than in 2009, while Bucuresti Mall did somewhat better, with EUR16.3 million in 2011, down by 7% compared with 2010, and by 14% from 2009.
(English version by Loredana Fratila-Cristescu)