AFI Europe Romania published its financial results; the Net Operating Income (NOI) from its income producing assets in Romania reached to over EUR 51 million in 2017, representing 10.1 percent higher results compared to 2016. AFI Cotroceni’s sales reached over RON 1.1 billion in 2017.
AFI Cotroceni, one of the largest shopping malls in Romania, reported a NOI of over EUR 34 million, representing a 2 percent increase compared to 2016 though taking into consideration the extensive expansion construction works that have been finalized only in Q4 of 2017. The number of visitors to AFI Cotroceni increased to 51,000 visitors per day. AFI Cotroceni retailer’s sales increased by 5% to RON 1.1 Billion compared to 2016.
AFI Cotroceni was valued on September 30 at EUR 501 million, increased by more than 7 percent, and following the expansion to host the largest P&C in Romania (5,200 sqm) and the largest Zara shop in the CEE region (4,000 sqm) the mall’s GLA increased to 90,000 sqm of rentable areas.
AFI Ploiesti shopping center of 34,000 sqm GLA generated over EUR 5 million in NOI during 2017 while retailer’s sales rose by 18 percent to over to RON 260 million compared to 2016. The number of visitors is over 15,000 shoppers per day and the occupancy rate of the shopping mall in Ploiesti remains steady at 99 percent.
Office Project AFI Park, 70,000 sqm GLA with a projected yearly income of EUR 13 million is leased 99.7 percent and the value of the 5 office buildings is EUR 165 million according to the valuation performed as of September 30, 2017.
“During 2017 we have expanded AFI Cotroceni by 7,000 sqm GLA opening the largest P&C and Zara shops in Romania and their contribution to the mall results will be felt in 2018. Our overall occupancy in the income producing assets is 99%. In addition we have 3 diversified ongoing projects under construction; AFI Brasov mall & offices which we have over 85% of the mall’s shops signed or concluded to be signed, AFI Tech Park offices which are close to 40% pre-leased and AFI City Residential complex which have launched sales during the last couple of weeks. 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.
The construction works on AFI Brasov are advancing according to the time schedule. Currently there are already signed agreements for 85% of the spaces in the mall. The mall will spread on an area of 45,000 sqm GLA and will include 200 shops and retail units. On top of the mall 2 class A office buildings shall be constructed totaling 25,000 sqm of GLA.
In addition in the office segment, construction works for AFI Tech Park in Bucharest are well advanced and the pre-lease is close to 40%. The first office building will open in Q2 2018, offering 20,000 sqm GLA office space and 2,000 sqm of retail area.