Real estate major investment opportunities in Romania. Assesment of real estate market in 2014.

1. ANTEEA ESTATE
2014
Anteea Estate www.anteea-estate.ro

2. Contents
Anteea Estate
Property Management - Case Studies
Other Services/Investment Oportunities
1
2
4
33
Market Brief 20145
Our Profile/ Our Services

3. Summary
• Our Profile
• Our Services in Romania
• Case studies
• Investment opportunities: building in historical centre 90%
occupancy rate/ land plot investment opportunity
• Conclusion: Why Anteea Estate?
• Our Team

4. Our Profile
• Anteea Estate is a specialized real estate consulting firm
founded in 2002 with an experience of 12 years on Romanian
market;
• Specialized in providing real estate consulting services,
covering a wide range of services;
• Specialized professionals with over 10 years experience for
each range of offered services;
• Market research services for our internal use or offered to our
clients;
• Clear working procedures that ensure a high level consistency
and the high quality of our services;

5. Our Services
Representing OUR CLIENTS with/in:
• CAPITAL MARKETS (investments, sales, acquisitions);
• CORPORATE OCCUPIER & INVESTMENT SERVICES (leasing,
lease administration, transaction management);
• LEASING (tenant representation, office leasing, landlord
representation, transaction consulting, localized retail
services);
• VALUATION ( Advisory Services, Business Valuation, Portfolio
Valuation, Valuation for Development – Residential, Office,
Retail);
• PROPERTY/PORTFOLIO MANAGEMENT (Property/Asset
Management, Facilities Management, Lease Management,
Lease Administration, Risk Management).

6. Market Segments
Our
Clients
Capital MarketsProfessional Services
Land plots market
Office Market
Residential Market
Commercial/Retail Market

7. Investment opportunity –
Bucharest historical center
Lipscani 43 building – commercial spaceLipscani 43 building – commercial space

8. Photo Lipscani 43
Gang entrances – Blanari & Lipscani streetGang entrances – Blanari & Lipscani street

9. Photo Lipscani 43
Gang viewGang view

10. Lipscani Building
Characteristics
• Location: Lipscani 43, in the historical center of Bucharest; 3rd
district.
• Total GLA: 326.62 sq.m. / Leasable area: 297.43 sq.m.
• Structure of building: P+2, attic and basement.
• Utilities: water, gas, ventilation, waste.
• All utilities, cleaning, security services are covered by tenants.

11. Lipscani Occupancy Rate
• 90 % occupation rate from the beginning.
• Income from current tenants totals 340,000 Euro/ year.
• All lease increase each year due to market growth.
• The majority of lease contracts are long term contracts.
• There is an additional space of 150 sq.m .that can be
transformed in a roof terrace ( there are no roof terraces in
the historical center).
• SALES PRICE: 3,500,000 Euro

12. Property Management – Our
Services
City Point ResidenceCity Point Residence
Adora Urban ResidenceAdora Urban Residence

13. Property Management – Our
Services
Green Vista ResidenceGreen Vista Residence
Sevastopol ResidenceSevastopol Residence
Text

14. Land / Investments– Our
Services
Land plot Aleea TeisaniLand plot Aleea Teisani
• Land plot within the built-up area – northern part of Bucharest – one of the most expensive
zones as well as the most modern of the capital;
•Size: 25,045 sq.m according to measurements;
•Placement: in the 1st
district of Bucharest, in the north zone of the capital , close to Baneasa
Forest and the ring road; across the street from Philip Morris building;
• 2 ways of access – the access to the land plot is easy and facile, through the paved roads –
first from DN1 Bucharest – Ploiesti and second from the road ring of Bucharest.

15. Assesment Summary
• Land plot “ Gura Calitei”, close to Policolor Dye Factory, next to Domus
electronics and electro domestics store chain/ Location: 3rd
district,
Bucharest;
• Benefiting from zonal urban plan: P+2 + attic/ P+8.
• The purpose of assessment: sales/ possibilities of development.
• Market value of property: 120 Euro/ sq. m.
• Last review date: August 2014.
• Result of assessment: the land is suitable for residential development.
• Utilities available :water, gas, electricity, waste.

16. Land plot location

17. General data of the area
 Placement: south –east area of Bucharest. The area with the
biggest growth potential starting from 2013.
 Catchment area:
 Primary : over 342,541 inhabitants (20.4% of the total population of
Bucharest);
 Secondary : 302,430 inhabitants - 282, 215 inhabitants ( 16.8% of the
total population of Bucharest) + Popesti Leordeni - 20, 215 inhabitants;
 Tertiary: 282,215 inhabitants ( the other half of districts 2 & 4);
 TOTAL: 927,186 inhabitants;
 Access : the access to the land plot is easy and facile, through
the paved road (by car) or through public transportation: 8
bus lines, 3 tram lines and 1 metro station – Anghel
Saligny.

18. Photo area / land plot
Nearby construction of new residentialNearby construction of new residential

19. Photo area / land plot
Anghel Saligny metro station/ Land plotAnghel Saligny metro station/ Land plot

20. Office / Investments– Our
Services
• Land plot: 595 sq. m.; Total built area: 3447 sq.m.
•P +3 – composed of administrative office space, office and storage downstairs
with area of 1,149 sqm and ground floor with a usable area of 2,930 sq.m.
•Utilities: central heating, air conditioning, water, electricity, gas and sewage.
•The building is 90% occupied. Sale price is €1,400,000.
Vitan Office BuildingVitan Office Building

21. General View of Romanian
real-estate market - 2014
 The Romanian real-estate market transactions were around 402 million
Euro in the 1st
half of 2014 and the entire transitioned surface was over
692,000 square meters.
 Compared with first half of 2013 the market reported an increase in
investments of 222% (3. 22 times);
 In comparison with the entire year , the increase in the first semester
was of 17%.*
 Due to increased investments the prime yields for the office market
suffered a compression from 8,25% to 8%.
 The rest of prime yields remained unchanged. *
 The prime rent was relatively stable for the commercial centers – 60
Euro/sq.m. / month; 18 Euro/sq.m./month for office space and 3.8
Euro/sq.m./month for industrial properties. *
* According to a CBRE market report

22. Retail space – Romanian
market 2014 -
• Retail sales grew by 7.8% in the first five months of 2014;
• Occupier demand in Q2 was for the most part stable. Interest
• was focused primarily on large cities;
• On the supply side, this year’s new shopping centre supply will
• represent a 12-year low, with only 4,170 sq.m of GLA delivered in the first
half of the year and 30,000 sq.m under construction and set to be
completed in H2.
• There are, however, four schemes under construction and due to be added
to the market in 2015 and 2016, consisting of approximately 210,000
sq.m of GLA – 3 in Bucharest and one in Brasov.
• Several new projects and extensions have the potential to begin
construction in the following months, potentially adding a further 230,000
sq.m of GLA

23. Retail Space – Romanian
market 2014

24. Office space – Romanian
market 2014 -
• Q2 office take-up reached 89,500 sq.m in Bucharest, marking a 47% growth
on previous quarter especially on the back of 3 major deals: Orange (13,700
sq.m), Ericsson (16,000 sq.m), Volksbank (8,000 sq.m).
• New leases accounted for 40% of take-up, followed by renewals (29%),
expansions and pre-leases each with 16%.
• Relocations represented 43% of take-up, while 30% was new demand.
• Over the quarter 46,700 sq.m of space was delivered in Bucharest taking
overall stock levels to 2.1 million sq.m of which approximately 75% is Grade A.
• Pipeline activity recorded an increase to 172,000 sq.m, out of which 76,600
sq.m is due for completion over the remainder of the year.
• With approximately 34% of the H2 2014 pipeline being secured under pre-let
agreements, vacancy rate is expected to remain around 13% as during the last
4 quarters.
• Outside the capital, Cluj-Napoca has the most active development with 36,000
sq.m having announced delivery in H2, further to the 19,000 sq.m
completions of H1.

25. Office space – Romanian
market 2014

26. Office space – Romanian
market 2014 - Bucharest
 Office space transactions first half - 132,000 sq.m., an increase of 27% from
the same period last year.
 Most of the rentals, approximately 40% of the total were made in existing
buildings.
 According to real estate specialist it seems that 2014 will turn out better than
the previous one (2013) in terms of office transactions.
 The motor of the growth, in the first semester was relocation( 61% of total) ,
as opposed to segment of contracts renewals (declining with 33%).
 The relocations totaled 106,750 sq.m competing with contracts’ renewals,
which totaled only 25,259 square meters and have suffered a setback of 33%
compared to the same period last year.
 Pre-lease contracts for buildings under construction represented over half of
the relocations in the first half of 2013 (32,800 square meters). This year,
most of the spaces were occupied in existing buildings a surface of 57,573
sq.m. (40% of total).
 largest share accounting for transactions over 3,000 sq.m. space, with 44% of

27. www.anteea-estate.ro
Your partner for growth
CONTACT: Roxana Pavel, Acting General Manager
roxana.pavel@anteea.ro
+40722222021