Bucharest’s AFI Palace Cotroceni increases income by 6.5 pct in 2013

Newsroom 12/03/2014 | 12:06

The AFI Palace Cotroceni shopping mall in Bucharest increased its net operating income by 6.5 percent in 2013, above the initial target, to a total of EUR 28.7 million, announced today representatives of AFI Europe Romania, the project’s developer and property manager.

Retailers present in the mall reported a 4.3 percent increase of total sales (in euro). By comparison, in 2012 AFI Palace Cotroceni posted a EUR 196 million turnover, up 9 percent y-o-y. Traffic was up by 2 percent in 2013, totaling some 19 million visitors. The daily average number of visitors was 53,000 in 2013, according to the company.

AFI Palace Cotroceni has a 80,000 sqm leasable area and was opened in 2009. It is the biggest and most important asset in the developer’s local portfolio. It was evaluated at EUR 375 million at the end of September 2013.

The developer also announced that AFI Palace Ploiesti, the mall which it opened last October following a EUR 50 million investment was evaluated at EUR 58 million at the same date. In April the developer plans to open a Cinema City multiplex and an entertainment area on the grounds of the shopping mall.

In Romania AFI Europe has also invested in the office segment. It is presently developing the AFI Park project near AFI Palace Cotroceni which will comprise 5 office towers. The first building (12,150 sqm) was completed in September 2012 and is fully leased. The second building will be completed in April and was fully leased to Electronic Arts. The third building will be delivered in December.

This year the company also wants to start construction of the remaining two buildings in the AFI Park project which have a combined GLA of 30,000 sqm and it will be looking to buy more land for retail projects both in Bucharest and outside. Expanding into residential is also on the developer’s radar, David Hay, CEO of AFI Europe Romania, told BR in a recent interview.

AFI Europe has been present in Romania since 2005.

AFI Properties, the parent company of AFI Europe, announced a EUR 32 million profit for 2013.  The company’s operating profit stood at EUR 96.5 million up 85 percent while the net operating income was up by 11 percent and totaled EUR 73 million.

The company is present on 8 CEE markets including Romania where it is present with its fully owned subsidiary AFI Europe.

Simona Bazavan

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