Four investors started work on new office buildings with a lettable area of almost 80,000 square meters in the first two months of 2013 without knowing for sure what companies will rent them.
At least two projects will be self-funded by developers as most banks are reluctant to share the risk with real estate investors no matter how safe a bet such a development might appear to be.
Three of the four projects were started in Bucharest, while the fourth will be developed close to the center of Cluj (NW Romania) a city low on office space supply, where several developers intend to invest.
Each of the three projects in Bucharest, Green Court, Center Square and Unirii View is located with 500 meters from a subway station, which shows how important access to subway has become, since it is regarded as the fastest and most efficient means of transportation in the city.
Sweden’s Skanska started work on its project, Green Court, four months after acquiring its first plot of land in Bucharest on the Barbu Vacarescu Street near Aurel Vlaicu subway station (north of the city).
Skanska announced a EUR46 million budget for the first building of the Green Court complex, with a lettable area of 19,500 square meters, which should be completed in the fourth quarter of 2014. Skanska pays for the investment itself and is also the general contractor.
Skanska is one of the few large companies that decided to come to Romania during the crisis years, where most players froze their projects.
Another project in Bucharest is Center Square near Piata Romana (center of the city), which businessmen Dan Cojocaru and Michael Hadjipavlou, owners of architecture and design firm Proiect Bucuresti, revived this year. The project was first discussed two years ago when US AIG Lincoln was supposed to take part in it.
This year, however, the investors started work on their own through Alecsandri Estates and will use EUR2.9 million from Piraeus bank for the first phase. The complex will include three buildings with a lettable area of 24,000 square meters and the builder of the first phase is Comnord.
The third project in Bucharest, near Piata Unirii, is a partnership of Costel and Ionut Casuneanu, sons of businessman Costel Casuneanu, a big name in the asphalt paving business. They teamed up with Belgian Yves Weerts and started work on Unirii View, a 17-story tower with a lettable area of 18,700 square meters. They are self-funding the project at first and hope to get loans from banks once they start signing pre-leases.
Businessman Ovidiu Sandor partnered with NEPI for The Office business park in Cluj, whose first building with a lettable area of 19,000 square meters will be self-funded and is due for completion in 14 months.
(English version by Loredana Fratila-Cristescu)