Bucharest, 21.08.2017: AFI Europe Romania published its Q2 and H1 2017 financial results, generating a Net Operating Income (NOI) from its income producing assets in Romania of EUR 12.5 million in Q2 and close to EUR 25 million in H1, representing respectively 10.4% and 11.5% higher results compared to the same periods in 2016.
The number of visitors in AFI Cotroceni, the dominant Shopping Mall in Romania, was increased in Q2 2017 by 4% compared with the same period in 2016 and amounted to 50,000 shoppers daily in the mall. AFI Cotroceni retailer’s sales (Turn-Over) increased by 2% compared to Q2 2016.
Peek&Cloppenburg (P&C) will open a 5,200 sqm shop in AFI Cotroceni located in the new expansion of 6,500 sqm of GLA. Following the current expansions AFI Cotroceni will reach 90,000 sqm of leasable areas (GLA).
AFI Ploiesti Shopping Mall results continue to increase in all parameters. Retailer’s Sales (Turn-Over) rose by 19% in Q2 and 16% for the first 6 months of the year, compared to the same periods in 2016. In addition the daily number of visitors to the mall resulted in over 15,000 shoppers per day. The occupancy rate of the shopping mall in Ploiesti remains steady at 99%.
Construction works for AFI Brasov, the third shopping center of AFI Romania, have advanced, and currently 80% of the spaces are already assigned. The shopping center is located in the heart of the city center and will offer a total gross leasable area of 45,000 sqm (160,000 GBA) that will be combined with additional 2 “Class A” office towers totalling 25,000 sqm GLA. The overall investment for the mall and first office building is estimated to be over Euro 120 million. The entire project is developed to be LEED Gold certified as “green” building.
On the office segment, construction works on AFI TECH PARK are well advanced, currently casting the 4th floor of phase one consisting of 22,000 sqm GLA, that will be delivered in Q2 2018.
AFI Park, the 70,000 sqm GLA of Class A office buildings developed adjacent to AFI Cotroceni mall are close to 100% occupancy rate with a projected yearly income of EUR 13 million.
“The current growth of the Romanian economy and the good financial results registered by our company encourages us to continue and search for new opportunities and investments. We are currently under construction of 170,000 sqm out of which 45,000 sqm shopping mall GLA and of 37,000 GLA offices and preparing to launch the AFI City residential project, all in parallel of AFI Cotroceni and AFI Ploiesti expansions and tenant mix changes”, commented David Hay, CEO AFI Europe Romania.
AFI Properties Q2 2017 Results;
Income of EUR 59 million, NOI of EUR 21.5 million
AFI Properties, the parent company of AFI Europe, has published its Q2 of 2017 financial reports, registering a NOI of EUR 21.5 million, up 11% in euro currency terms (3% increase in ISR Shekel currency terms) and an income of EUR 59 million representing an increase of 138% compared to Q2 of 2016.
AFI Properties through AFI Europe is under construction in the CEE and SEE markets of 100,000 sqm of offices in 5 new office buildings in addition to 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 276 units are already sold.
AFI Properties owns over 450,000 sqm of commercial properties and as of June 30 2017 had cash reserves of EUR 180 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, in order 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 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.