Immpuls – leading real estate consulting, design and project management company – estimates that more than 500,000 sqm of shopping centers require works to adapt to market conditions and trends.
With investments of up to €500 per sqm, the refurbishment costs for existing malls rise at over €200 million. Of all the works, the reconversion of spaces and the expansions works needed to improve the mix of tenants make up 40 percent of the total investment costs required for a shopping center.
“Inside and outside face-lift is part of the normal life cycle of shopping malls in any market. But existing centers in Romania must do more and invest in functional changes to improve the tenant mix. That will help them to capitalize on the opportunities and consumer trends or simply to survive,” commented Tudor Popp, Managing Partner Immpuls Real Estate Solutions.
“The entertainment and leisure facilities are the key elements of the social mall. In the next period, we will see developments of the food courts, adding fine dining facilities, as well as an increase in the type and quality of the entertainment. Concurrently, owners need to value more the cinema, which, despite the 14 percent market plus recorded last year, still has a low penetration rate of 0.45, compared to other markets, where the ratio of sold tickets and total population is 0.9 (Poland), 1.1 (Czech Republic), 1.8 (Austria) and 3 (France),” added Popp.
Refurbishments include processes like face-lifts (improving aesthetics, materials and design – requiring on average 30 percent of total investments), functional reconversion and extensions (accounting for 40 percent of costs) and technical upgrades needed to meet the requirements of international retailers or for cost effectiveness (improvements which represents about 30 percent of investments).
The current status of commercial centers in Romania and the perspectives for development are subject of debate during the conference “The Future of Shopping Centers in Romania” on Wednesday, May the 7th, at Hotel Novotel Bucharest. Local and international experts will cover:
Influencing factors (economy, consumers, retailers and competition); the evolution of consumers and retailers; the quality of shopping centers; development models and strategies; differentiation and competition; getting the refurbishment right.
The conference “The Truth Behind the Facade” benefits from a panel of leading speakers that includes:
Georgios Argentopoulos – CEO – Baneasa Commercial Area
Domenico Del Priore – Director -Goodster
Ali Ergün Ergen – Managing Partner – TBE
Matei Florea – Partner – Schönherr Romania
Harald Flöer – Fund Director – Aberdeen Immobilien Kapitalgesellschaft
Razvan Gaita – CEO – Anchor Group
Ioana Gheorghiade – Executive Director Project Finance – BCR Erste Bank
Gijs Klomp – Managing Director – Jones Lang Lasalle
Hannes Lindner – Managing Partner – Standort + Markt
Stephan Mayer-Heinisch – Chairman – Austrian Council of Shopping Centers
Robert Maxim – Managing Partner – Ensight Management Consulting
Luiza Moraru – Head of Retail and Property Management – CBRE Romania
Peter Pointner – Managing Partner – Gastro Immobilien Börse
Harald Schaller – Senior Asset Manager Retail – Immofinanz AG
Brigitte Schmitt – Managing Partner – Oasis Shopping Center Services