Mobexpert, one of the biggest furniture companies in Romania, is planning to expand in real estate by building apartments or offices above its new standalone stores which will be built in Timisoara, Cluj and Craiova in the next four to six years.
Dan Sucu, the owner of Mobexpert, said for Business Review that the company is looking to buy 2 hectares of land in Timisoara and Cluj. “The land price has gone considerably up, maybe even higher than in Bucharest. We had been planning the expansion of Mobexpert stores for years, before the prices went up. Now, in order for the construction and the acquisition of land to be cost efficient in comparison to the purchasing power in those cities, we thought we would build a residential or office building above each store. This way, we can develop our business closer to the city center. Also, it’s a way to better organize the expenses”, Dan Sucu explained. He also stated that the municipality encourages this type of constructions and allows them to be built closer to the city center.
In Romania’s big cities, land prices in the commercial area are almost equal to prices in residential areas, he added. With a height of up to 10 floors, the construction will respect the surrounding architecture. Dan Sucu didn’t want to reveal the investment value but he said “I will invest as much as necessary and can be justified economically”.
Mobexpert will open in September it’s biggest standalone store in Constanta, after a two year long construction, and an EUR 8 million investment. The establishment is developed on 11,000 sqm and “it’s our most beautiful store”, he said. He said that the construction was a few months delayed by bureaucracy.
Last year, Mobexpert saw a 12 percent year-on-year growth of its turnover, and online sales increased by 50 percent.