Alpha Bank’s real estate unit in Romania sold apartments of EUR 28 mln in 2018

Newsroom 20/11/2018 | 13:13

Alpha Real Estate Services (ARES), a vehicle set up in 2014 to maximize the value of real estate assets taken over by Alpha Bank, sold in 2018 apartments worth of EUR 28 million in the managed housing projects, almost exhausting the entire portfolio of available apartments.

Of the 156 residential units of the Poseidon Residence – located on the shores of Lake Plumbuita and inaugurated in October 2017 -, ARES has already sold over 75 percent (119 residential units).

ARES also completed this year tha sale of 119 apartments in the Privighetori Park project.

”The pace of sales recorded in 2018 in residential projects managed by ARES is in line with expectations, approaching to the level of 2017. This was due to both recommendations made by owners who have already purchased housing estate in these projects, and the benefits package at our clients’ disposal (customized interior design, various promotional offers, loans directly from the developer or dedicated financing banking products), ”said Iulian Calin, general manager Alpha Real Estate Services.

ARES estimates that the entire stock of apartments that it manages will be sold in the coming months.

Brokerage and real estate management services

Starting with a portfolio of over 1,200 apartments under management in 2014, ARES has almost entirely finished the sale of residential units stock and it is considering launching brokerage services and real estate management to investors or developers active on the residential market, where an integrated team (sales, technical, financial) with solid experience can make the difference. 

ARES will remain in 2019 with a relatively low stock, mainly apartments of large size, penthouses or apartments with more than 100 sqm, which do not qualify for 5 percent-VAT.

”However, we are confident that market demand will remain at high level, supported by revenue growth and the need to improve the quality of housing,” Iulian Calin points out.

Cubic Center leasing

Beyond the residential area, ARES is also involved in the management and rental of the Cubic Center offices building in Pipera area, with a leasable area of ​​27,500 sqm.

During the last year, ARES has signed new lease agreements for around 5,000 sqm of offices with clients like Homelux, Praktiker Real Estate, Cersanit, Allevents, Bitbrenner, Oia Trans and Alpha Bank Romania, and the existing Agricover and Promidea tenants extended their rented areas.

”In the office market, I think the big players give great importance to the proximity to the subway stations, and Class A buildings, such as the Cubic Center, which are farther from the subway, are less demanded even if they offer high quality conditions and equipment as well as private buses to and from the subway, ”Calin states, adding that workforce shortage is now a problem for all businesses.

ARES has leased almost entirely two commercial spaces from its portfolio in Bistrita and Baia Mare (former DIY Ambient).

Another project under ARES management, the MLP logistics park in Popesti-Leordeni (sold partly to Olympian Phoenix and Romcarton), registered significant investments to improve access.

ARES portofolio

”In the future, in addition to finalizing the sale of all apartments in residential projects and continuing the management of the other assets in the portfolio, ARES analyzes the opportunity of taking over or developing new projects and / or concluding partnerships with other players on the real estate market and in other sectors,”concludes Calin.

ARES has managed a portfolio of over 1,200 apartments in five residential projects in Bucharest and Bucharest Ilfov, and more than 90 percent of them were sold in less than four years.

Although the apartments in its portfolio did not match very well the current preferences in the market, having large surface and elevated prices – not included in the Prima Casa program and even above the 5 percent-VAT threshold, ARES managed to achieve good results by implementing specific promotion and award campaigns customized to potential buyers.

During this year, Alpha Real Estate Services has sold over 200 apartments (plus retail space) in its residential units, generating revenue of about EUR 28 million.

In the four years of business, ARES was involved in real estate development projects (completion of the works of the Poseidon Residence complex with 156 apartments, in the Colentina area and the Green Vista block C1 with 50 apartments in the Pipera area); residential projects (property management and property management) sales intermediation for Doamna Ghica Plaza – Doamna Ghica area, Green Vista – Pipera area, Park Baneasa area, Asmita Gardens – Mihai Bravu area) with over 1,200 apartments under management and over 90 percent of them sold.

ARES also managed logistics/industrial projects (management of a warehouse 14,000 sqm and 56 hectares of land in Popeşti-Leordeni; selling the deposit in Popeşti-Leordeni and a 10.5 hectares of land to Olympian Phoenix in May 2017; selling a 10 hectares plot to Romcarton); commercial projects (property management for a commercial building of 10,000 sqm in Baia Mare and a commercial building of 8,500 sqm in Bistrita); office buildings (Cubic Center, 27,500 sqm – Pipera area); land property (selling a land of 11,000 square meters in the Stefan cel Mare area, Bucharest).

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