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AFI Europe Romania Financial Results: Net Operating Income (NOI) of over EUR 37 million during 2017 first nine months, AFI Cotroceni Crossed The Half Billion Euro Value Mark

Bucharest, November 23, 2017: AFI Europe Romania published its financial results. The Net Operating Income (NOI) from its income producing assets in Romania was over EUR 37 million in the first nine months of the year, representing respectively 10.4% higher results compared to the same period in 2016. The value of the existing income producing assets AFI Cotroceni, AFI Ploiesti and the 5 office buildings of AFI Park increased by 7.5% to EUR 735 million according to the valuation performed as of September 30, 2017.

The number of visitors to AFI Cotroceni, the largest and most dominant shopping mall in Romania, remains stable at close to 50,000 visitors per day. AFI Cotroceni retailer’s sales (Turn-Over) increased by 3% to LEI 770 million compared to first 9 months of 2016.

 

AFI Cotroceni was valued on September 30 at EUR 501 million increased by more than 7%.

The data above is prior and before of the opening of the largest P&C in Romania (5,200 sqm) and the largest Zara shop in the CEE region (4,000 sqm) both which opened after the reporting period and during October 2017. In addition, during December Bershka is set to open in Cotroceni its largest shop in the CEE. Following the extension, AFI Cotroceni GLA increased to 90,000 sqm of rentable areas.

 

Results of shopping center AFI Ploiesti of 34,000 sqm GLA continue to increase significantly in all parameters. Retailer’s sales (Turn-Over) rose by 18% to close to LEI 200 million in the first nine months of the year, compared to the same periods in 2016. The number of visitors is over 15,000 shoppers per day. The occupancy rate of the shopping mall in Ploiesti remains steady at 99% and the value of the mall is EUR 67 million according to the valuation performed as of September 30, 2017.

Office Project AFI Park, 70,000 sqm GLA with a projected yearly income of EUR 13 million is close to 100% occupancy rate, and the value of the 5 office buildings is EUR 165 million according to the valuation performed as of September 30, 2017.

 

The construction works on AFI Brasov are advancing according to the time schedule announced with an estimated delivery date of the project in the first quarter of 2019. Currently AFI Brasov shopping mall is 50% Pre-Leased and additional 30% under signing process. The mall will spread on an area of 45,000 sqm GLA and will include 200 shops and retail units.

AFI Europe Romania commenced the leasing campaign in the office project AFI Park Brasov and is in advanced negotiations with two companies located in Brasov for the leasing of the first 4,000 sqm in the first office building. AFI Park Brasov will be integrated into the AFI Brasov shopping center and will comprise of two Class A office towers totaling 25,000 sqm GLA.

 

In addition on the office segment, construction works for AFI Tech Park in Bucharest are well advanced, currently completing the skeleton structure works and the first office building will open in Q2 2018, offering 20,000 sqm GLA office space and 2,000 sqm of retail area (fitness club canteen and coffee shops), efficiently spread over 8 above ground floors serviced by two underground parking levels. AFI Tech Park is Pre-Certified LEED Platinum.

AFI Europe Romania is currently preparing to launch its first residential project in Romania: AFI City, located in Bucurestii Noi. As phase I, two residential buildings consisting of 190 apartments, 16,000 sqm of built up area are planned to be developed.

“The favorable economic context and the continuous development of key sectors such as IT&C make Romania a very attractive destination for AFI’s real estate investments. Our portfolio value in Romania increased by 7.5% and reached EUR 735 million from existing assets and we have 3 diversified ongoing projects under construction the AFI Brasov mall & offices, AFI Tech Park offices and AFI City Residential complex. We continue to maintain our interest for new opportunities, whether developments of new shopping centers or office projects,” says David Hay, CEO AFI Europe Romania.

 

AFI Properties 9 months of 2017 Financial Results;

Profit of EUR 63 million and a NOI of EUR 63 million

AFI Properties, the parent company of AFI Europe, has published its first 9 months of 2017 financial reports, registering a NOI of EUR 63 million, up 11% and an income of EUR 160 million representing an increase of 30% compared to first 9 months of 2016.

 

AFI Properties registered a profit of EUR 63 mil, up 6%, out of which EUR 48 mil were reflected in valuation profit according to valuation performed as of Sep 30, 2017.

AFI Properties through AFI Europe is under construction in the CEE and SEE markets of 150,000 sqm of commercial projects including 5 office projects in 4 countries and AFI Brasov shopping mall of 45,000 GLA currently under development in Brasov Romania. In the residential segment AFI Europe is developing 1,000 residential units across Serbia, Poland, Latvia and the Czech Republic out of which 400 units are already sold during 2017.

AFI Properties owns and manages over 450,000 sqm of commercial properties and as of September 30, 2017 had cash reserves of EUR 165 million.

 

About AFI Properties:

AFI Properties is a member of the AFI Group, an international holdings and investments conglomerate with subsidiaries that engage in real estate, construction, infrastructure, industry and hotels (www.afigroup-global.com).

The company is active in the income producing and development property market since 1971. AFI Properties has been listed on the Tel-Aviv stock exchange in 2004. The company has been active in Europe since 1997 through its subsidiary AFI Europe mainly in the CEE markets. AFI Properties is ranked “BBB+ positive” by S&P and “A3 stable” by Midroog (a subsidiary of Moody’s).

 

About AFI Europe:

AFI Europe, a subsidiary of AFI Properties, is one of the leading real estate development, management and investment companies, which is operating in Central and Eastern Europe since 1997.

AFI Europe’s diversified portfolio consists of shopping malls and retail properties, business parks and large-scale residential and mixed-use developments. AFI Europe operates in Romania, Czech Republic, Poland, Germany, Bulgaria, Serbia, Hungary and Latvia.

About AFI Europe Romania:

AFI Europe operates in Romania since 2005. The company has developed and is managing “AFI Cotroceni”, the largest and most dominant shopping mall in Romania and among the leading shopping malls in the CEE region. The mall spreads over a leasable area of close to 90,000 sqm (GLA) and offers to its visitors a large entertainment area with multiple leisure options and a variety of over 300 shops of local and international brands, visited by 50,000 customers per day.

In October 2013, AFI Europe inaugurated AFI Ploiesti, the first and only modern shopping mall developed in the city centre of Ploiesti, following an investment of over EUR 50 million. The shopping mall offers a total gross leasable area (GLA) of 34,000 square meters spreading over two retail floors occupied by 100 national and international brands, including more than 7,000 sqm of entertainment.

Adjacent but fully integrated into AFI Cotroceni shopping mall, AFI Europe Romania has developed AFI Park, Bucharest’s newest and most advanced Class A Business Park. AFI Park offers 70,000 of office leasable area occupied by multinational IT&C corporations. AFI Park 1-5 are close to 100% leased. AFI Park line-up of multinational tenants includes: Microchip Technology, Electronic Arts, Endava Romania, Cameron US, SII Romania, ORTEC Central & Eastern Europe, FotoNation, Telus International, Veeam Software and Dell SecureWorks.

 

AFI Europe Romania is currently under development in the City Centre of Brasov Romania of AFI Brasov, which includes a 45,000 sqm GLA shopping mall and two office buildings of 25,000 sqm GLA.

 

In the office segment, AFI Romania is under development of AFI TECH PARK, a 56,000 sqm of GLA Class A Business Park located in close proximity to the J.W. Marriott hotel and the Romanian Parliament. The business park will comprise of 2 low rise office buildings and one office tower, with ample green areas in a central garden, the project being built as a high tech/campus style environment, to answer the expanding needs of IT&C companies in Romania by offering a suitable space in terms of technical specifications accompanied by required expansion options.

 

In addition, AFI Europe Romania has two projects to be developed in the near future: a 80,000 sqm land plot in Arad where a retail park is to be developed anchored by a hypermarket and a DIY shop and the large scale residential project AFI City, to be developed on the 148,000 sqm land plot in Bucurestii Noi district 1 of Bucharest.