Tuesday, 19 February 2013
TRADE AND INVESTMENT OPPORTUNITIES IN ROMANIA – Q1 2013
TRADE AND INVESTMENT OPPORTUNITIES IN ROMANIA – Q1 2013
KEY SECTORS OF POTENTIAL OPPORTUNITY FOR EXPORT TO ROMANIA, FOR SOURCING PRODUCTION AND FOR INVESTMENT
- METAL SCRAP
- METALLURGY: BRONZE AND BRASS CASTINGS
- NAVAL CONSTRUCTION & REPAIR
- AGRICULTURAL EQUIPMENT
- FOOD MARKET: MEAT
- INDUSTRIAL AUTOMATION
- INDUSTRIAL MANUFACTURING: BEARINGS
- PHOTOVOLTAIC PARKS
- HEALTH SERVICES AND MEDICAL DEVICES
- FURNITURE AND ACCESSORIES
- COMMERCIAL REAL ESTATE AND HOSPITALITY
This demo report is produced by FRD Center Market Entry Services – www.frdcenter.ro - a privately owned market entry consulting firm based in Romania.
FRD Center offers tailor-made market intelligence, B2B matchmaking and market access consulting services to foreign organisations interested to enter the emerging markets in Europe as exporters, consultants, investors or joint-ventures, to relocate their operations, or to source in CE, SE and Eastern Europe.
Since 2000, FRD Center has been the trade consultant for the Irish Governmental Agency, Enterprise Ireland. Other clients are Commercial Sections of Embassies, Export Councils, Trade Governmental Agencies, Chambers of Commerce, private companies, corporations, SMEs from: Argentina, Austria, Canada, China, Czech Republic, Denmark, Germany, Greece, India, Ireland, Israel, Jordan, Lithuania, Norway, Poland, UK, USA, South Africa, Spain, Sweden, Switzerland etc.
Our services include:
- market research, investment opportunities assessment, sector studies, market briefs
- identification and qualification of B2B distributors, importers, suppliers etc.
- product presentation and assessment of interest from clients / partners
- pre-M&A business support and research
- identification of market opportunities: exports, sourcing, B2B sales etc.
- trade missions, business itineraries, inward buyer missions
FRD Center is the Global Intelligence Alliance Research Partner for Romania, a member of the Global Consulting Network-GCN, of M&A Worldwide, of the Expansion Alliance Group, of International Subsidiary Development Inc. and of EMERGY International network.
Whilst every care is taken in compiling this report, no responsibility is taken for errors or omissions. FRD Center guarantees that this information, collected and generated, has been operated in a professional manner and best efforts were applied with a view to offering accurate and complete results. However, FRD Center will not be held liable for any damage or loss resulting from the use of the information contained herein.
Sources consulted for this report: business mass media, the companies, official sources
1. METAL SCRAP
a) Sector brief
The total metal scrap market in Romania is estimated at approximately 2.5 billion EUR in 2011. 97% of the metal scrap generated in Romania is ferrous, followed by zinc and lead scrap with 2.2% and aluminium scrap with 0.5%.
According to the National Environmental Protection Agency and the Ministry of Economy, some 2,360 companies have active licenses for trading with ferrous and non ferrous metal scrap in Romania. The players are located all over the country and operate approximately 3,800 metal scrap collection points.
Some of the biggest players in the metal scrap sector in Romania are: Remat Calarasi, Rematholding Co, Remat Scholz, Silnef M.G., Tomini Trading, Energrom, Kirazoglu Corporation, Remat M.G., Rematinvest, New Company Recycling.
Romania is a net exporter of metal scrap, with a quantity of some 2.4 million tons of metal scrap exported in 2011.
b) Opportunities: WASTE MANAGEMENT, TRADE, M&A, TECHNOLOGY, EQUIPMENT, TOOLS, QUALITY CONTROL
2. METALLURGY: BRONZE AND BRASS CASTINGS
a) Sector brief
Romania has a developed metallurgy industry which plays a significant role within the country’s economy.
According to the Romanian Foundry Technical Association, the local production of the copper castings registered some 6.2 thousand tonnes in 2011, up by some 12% compared to the previous year. Also, the copper castings represented 5.1% of the production of castings in Romania in 2011. The cumulated sales of the local producers of bronze castings have increased constantly in the last years, reaching over 12 million EUR in 2011.
Some of the main producers of bronze or brass castings in Romania are: Laromet, Orion, Laurex Prod, Nefermental, Basprodex, Gog Metal, Rancon, Turbonef, Adorian 2000, Turnatoria Metalul, Uniprom.
In July 2012, Laromet started the construction works at an industrial unit of non-ferrous metals processing, located near Bucharest.
b) Opportunities: ALLOYS, TECHNOLOGY, EQUIPMENT, TOOLS, FACILITIES, QUALITY CONTROL, PRODUCTION
3. NAVAL CONSTRUCTION & REPAIR
a) Sector brief
The shipbuilding industry has a significant role within the Romanian economy, representing one of the engines of the country’s development.
In Romania, there are some 33 companies specialised in the naval construction or repair services. They recorded total sales of approximately 812 million EUR in 2011.
Some of the main players specialised in the naval construction or repair services in Romania are: Daewoo-Mangalia Heavy Industries, STX OSV Tulcea, STX OSV Braila, Damen Shipyards Galati, Severnav, Constanta Shipyard and Orsova Shipyard.
In 2011, STX OSV Group started an investment plan that includes the modernising of its facilities in Romania and the expanding of the production capacity by 25% in the shipyard in Tulcea. In July 2012, STX OSV Tulcea launched the platform supply vessel (PSV 08 CD).
In Romania in 2011, the volume of the sold production of bulk carriers registered 119 thousand CGT while the volume of the sold production of general cargo ships recorded 5.3 thousand CGT. Also, the local production of sold container carriers registered a volume of 247.5 thousand CGT and a value of some 292.2 million EUR in 2011.
The fitting out services of ships and floating platforms and structures performed in Romania reached 41.6 million EUR in 2011, up by 53% compared to 2010.
b) Opportunities: TECHNOLOGY, EQUIPMENT, FACILITIES, QUALITY CONTROL, COMPONENTS AND PARTS, PRODUCTION
4. AGRICULTURAL EQUIPMENT
a) Sector brief
In the last ten years, significant investments in the development of the agricultural equipment have been registered in Romania. The factors that contributed to this development were:
- the EU funds available for the farmers
- the Rabla Programme (Programme for the renewal of the national park)
- the special credits for co-financing
- the wider using of second-hand products
- the number of modern and efficient farms with large surfaces and financial capacity increased significantly.
The Measure 121: Modernisation of Agricultural Holdings within the Axis 1: Improving the competitiveness of agricultural and forestry sector of the National Rural Development Programme 2007 – 2013, finances investments for the acquisition of agricultural machinery for the vegetal and animal sectors, through public assistance (EU and national) and private co-financing.
By 24 January 2013, within the Measure 121, 2,333 projects with the public value of approximately 966.7 million EUR have been selected in Romania. The payments within the Measure 121 have recorded some 420.3 million EUR by 24 January 2013.
b) Imports & Sales
The Romanian production of agricultural machinery is low and the domestic market is dominated by imports. Romania imports agricultural machinery mainly from Germany, Italy, Austria, France, Hungary, Bulgaria, Turkey, China and USA.
Some of the main importers of agricultural equipment in Romania are: Agrocomert Holding, NHR Agropartners, Agromec Stefanesti, Bronto Compron etc.
Some of the main imported brands of agricultural machinery on the domestic markets are: New Holland, Case, Pöttinger, Einböck, Bogballe, Matermacc, Dondi, Hardi, Caffinni, Solo, Stihl, Efco, Husqvarna, Honda, Makita, Maruyama, Grimme etc.
IPSO, the John Deere farm machinery dealer in Romania, managed to grow 16-fold over the last eight years from 45 to 700 self-propelled machinery (tractors and combine harvesters) sold annually. IPSO is the biggest "player" in the market in Romania in the sale of agricultural machinery and ended 2012 with a turnover of 90 million euro, with a slight increase of 5% compared to previous year.
The Germans from Claas sold in 2011 356 self-propelled agricultural machines, 160 tractors and 196 combine harvester Claas worth 48.5 million euros.
In Q1 2012, the US firm Titan Machinery acquired Agroexpert Timişoara and entered the local market. Its main objective for 2012 was to reach a market share of 35%. Growth potential of the local market of agricultural machinery is quite obvious since, for a given area of 8.3 million hectares of arable land Romania has a fleet of 175,000 tractors, while in Poland, another Eastern European market, for the the 14 million hectares of arable land, there are 1.5 million tractors in use, according to the Food and Agriculture Organization (FAO).
Moreover, another growth engine for agricultural machinery market in Romania is that half of tractors that operate in Romania and are in the MIA records, are produced before 1989.
Some 1,800 – 2,000 new tractors are estimated to have been sold in 2012 in Romania compared to 1,200 in the previous year as well as 500 combine harvesters, all imported. The tractor sales are expected to continue the growing trend and to reach annual sales of 5,000 new units in the next five years. This mostly depends on the financing opportunities and the EU Agriculture Policy for 2014 -2020.
- The International Fair of Products and Equipment for Agriculture, Horticulture, Viticulture and Animal Breeding Indagra. The 18th edition of the fair takes place during 30 October – 03 November 2013, in the Romexpo Center in Bucharest. In 2012, the fair registered 55,000 visitors and approximately 400 exhibitor companies on a total surface of over 30,000 sqm. In 2012, some 40% of the participant companies were international.
- The International Exhibition for Agriculture and Agricultural Equipment RomAgroTec. The 10th edition of the exhibition takes place during 23 - 26 May 2013 in Ilfov (near Bucharest). In 2012, the exhibition recorded 49 participant companies on a surface of 90,000 sqm. Also, the exhibition recorded 5,200 visitors in 2012, up by 10% compared to 2011.
- The Exhibition for Agriculture and Agricultural Equipment AgriPlanta. The 3rd edition of the exhibition takes place during 6 – 9 June 2013 in Fundulea, Calarasi. In 2012, the fair recorded over 6,800 visitors, up by 24% compared to 2011. The fair registered 122 exhibitors y co-exhibitors in 2012.
- The International Fair for Agriculture, Food Industry and Animal Husbandry Agraria. The 19th edition of the fair takes place during 2 – 6 May 2013 in Cluj Napoca. In 2012, the fair recorded over 300 exhibitors from 12 European countries on a surface of 10,000 sqm and over 22,000 visitors.
d) Opportunities: EQUIPMENT, MACHINERY, BRANDS, TECHNOLOGY, EQUIPMENT, QUALITY CONTROL
5. FOOD MARKET: MEAT
According to the National Institute of Statistics, in 2012, the carcass weight of the slaughtered animals and poultry in Romania was of 114,464 tonnes of cattle, 442,942 tonnes of pigs, 74,543 tonnes of sheep and goats and 351,704 tonnes of poultry. In 2012 compared to 2011, the carcass weight of the slaughtered animals and poultry recorded the following increases: cattle (+9.5%), pigs (+4.1%), sheep and goats (+51.2%) and poultry (+1.9%).
Some of the main meat producers in Romania are: Smithfield, Cristim, Unicarm, Marex and Agricola Group.
So far, Smithfield invested in Romania some 600 million USD, out of which 500 million USD in farms and 100 million USD in the processing division. The Smithfield slaughterhouse produces some 30% of carcasses in Romania.
CrisTim recorded an increase of its revenues by 10% in 2012 compared to 2011.
The representatives of the meat producer Marex estimates that the company’s pork production will increase by 15% in 2013 compared to 2012.
The Agricola Group recorded total sales of approximately 133 million EUR in 2012, up by 8% compared to 2011. Agricola estimates that its market share amounted to 16% in 2012 and plans to increase it by 1% in 2013.
In 2012, the fund HKD Industries acquired the meat processor Integra. The purchase deal is estimated at over ten million EUR, including the capital injection. Integra has a meat processing plant located in Chitila (near Bucharest) with the production capacity of 1,500 tons per month. Integra targets an increase of its turnover by 30% in 2013 compared to 2012.
In February 2013, Carrefour Romania opened a new Carrefour Express store in Bucharest, expanding its network under the franchise arrangement with the local meat producer and retailer Angst to 20 units. Carrefour started the franchise chain deal with its long-term supplier Angst in October 2011 by launching the first convenience store in Bucharest. The Carrefour Express brand is part of the company’s strategy to diversify its formats and to launch small corner-shops.
In May 2012, the Agricola Group opened its 64th store. The outlet is located in Palas Mall in Iasi. According to its expansion strategy, Agricola intends to have 170 stores by the year 2014.
The local meat producer Avicarvil opened its first private store under the “La Provincia” brand in the Valcea county in March 2012. The company announced its plans to invest approximately five million EUR in opening 100 such stores. The company considers expanding its store network through franchising.
c) Imports & Exports
According to the National Institute of Statistics, the CIF imports of meat preparations recorded 382.8 million EUR in the first nine months of 2012, up by 5.5% compared to the similar period of 2011.
The Romania’s FOB exports of meat preparations recorded 266.5 million EUR in the first nine months of 2012, up by 28.1% compared to the similar period of 2011, according to the National Institute of Statistics.
In 2012, the producer Agricola Bacau exported 19% of its meat production. The producer exported to Germany, the Netherlands, France and Greece. Also, in the first ten months of 2012, Agricola exported chicken of some ten million EUR.
- The International Exhibition for Meat Industry Carnexpo takes place during 23 – 26 October 2013 in Exporom Bucharest.
- The International Fair for the Food Industry Indagra Food takes place during 30 October – 3 November 2013 in the Romexpo Center in Bucharest.
e) Opportunities: INGREDIENTS, RAW MATERIALS, PACKAGING, BRANDS, RETAIL, MERCHANDASING, EQUIPMENT, TOOLS, QUALITY CONTROL
6. INDUSTRIAL AUTOMATION
a) Sector brief
The local plants have started to invest in technologies and modern and efficient equipment, based on the growing demand, the presence of large foreign companies and the accession of the EU funds. Therefore, the level of automation has increased significantly in Romania in the last period.
A major player specialised in industrial automation and metering system in Romania is Syscom 18. The company’s net turnover increased by 30% in 2012 compared to 2011, reaching 13 million EUR. This growth was sustained by exports in the African and Middle East regions, which recorded three million EUR in 2012.
For 2013, Syscom 18 plans to increase its turnover to 15 million EUR, out of which 4 million EUR would be generated by exports. In January 2013, Syscom 18 signed contracts worth two million EUR in Bulgaria and Iraq and delivered industrial metering equipment to Bahrain and Algeria, based on contracts signed in 2012. The company will supply the metering component for the 25 km gas pipe that interconnects Bulgaria and Romania.
b) Opportunities: CONSULTING, EXPERTISE, TECHNOLOGY, EQUIPMENT, TOOLS, AUTOMATION, KNOW HOW
7. INDUSTRIAL MANUFACTURING: BEARINGS
a) Sector brief
Romania is a net exporter of bearings, bushings and transmission shafts, with approx. ¾ of the locally produced bearings and ball bearings being exported.
The major players in the bearings market in Romania are: Timken Romania, URB – Rulmenti Barlad, SKF Romania, Schaeffler Romania, NTN-SNR Rulmenti and Koyo Europe. They recorded cumulated sales of 518.7 million EUR in 2011. Excepting SKF Romania, all the others have manufacturing facilities in Romania.
At present, the local producers of bearings focus on international market expansion, while their production is increasing.
According to the National Statistics Institute, the value of the local production of ball bearings registered approximately 69 million EUR in 2011, up by 57% compared to the previous year. The volume of the sold domestic production of ball bearings registered y/y growth of some 10% in 2011, mainly based on the increasing demand of the external markets.
b) Opportunities: TECHNOLOGY, EQUIPMENT, TOOLS, AUTOMATION, KNOW HOW, SPECIAL MATERIALS
8. PHOTOVOLTAIC PARKS
a) Sector brief
The PV energy sector in Romania has one of the strongest growth potential and ROI in Europe. Analysts currently see Romania as the most interesting target for new PV projects due to the fact that approved legislation currently ensure a number of 6 green certificates / MWh for the solar energy at 27-55 EUR/ GC certificate on top of energy sold.
Solar Power Investment Subsidy remains unchanged till 2014 - the scheme granting six green certificates per each megawatt of solar power generated remains valid for the projects done by early 2014.
FRD Center currently holds 2 sell mandates from shovel-ready PV projects
that are looking for equity / debt financing and offer good ROI figures:
- A 9.9 MW land project located in SSW Romania
- A 5.5 MW rooftop project located next to Bucharest
Both have all studies, business plan and permits in place – please contact us
if any of these two or other type of renewables projects are of interest to you..
Romania has committed to produce 38% of electricity from renewable energy sources by 2020 as a contribution to limit emissions of carbon dioxide assumed by the EU counties.
The Korean company Photovoltaic New Horizon (PNH) started the construction of three photovoltaic parks, two located near Giurgiu and one in Alexandria. The 60 MW park in Alexandria is expected to be completed in 2013. The two plants near Giurgiu have the capacities of 3 MW and 5 MW.
The South Korean Group Samsung plans to build two photovoltaic parks in the Giurgiu county. The parks will have a total installed capacity of 45MW.
The supplier of turn-key services for photovoltaic projects Egnatia Romania finalised in August 2012 the works at the photovoltaic project of 1.7 MW owned by the Romanian company “Casa de Investitii ALIANTA”. The project is located in Lechinta village, Bistrita-Nasaud county. For this project, Egnatia used 6,762 fixed solar panels and 54 inverters.
b) Opportunities: INVESTMENT, CONSULTING, EXPERTISE, TECHNOLOGY, EQUIPMENT, TOOLS, GREEN CERTIFICATES, QUALITY CONTROL
9. HEALTH SERVICES & MEDICAL DEVICES
a) Heath services - sector brief
The Romanian medical services market expanded by 2 - 3% in 2012 compared to 2011. For the next years, it is expected that the private health system will continue to expand while the public medical facilities will continue to invest public and EU funds in the improvement and the refurbishment of the facilities, the acquisition of modern equipment, devices, chemicals, training of staff etc.
The providers of private medical services in Romania are MedLife and Medicover.
MedLife recorded a turnover of some 58.8 million EUR in 2012, up by 20% compared to 2011. On the corporate healthcare segment, MedLife recorded a y/y increase of 43% in 2012. MedLife expects for 2013 a double digit growth, with plans to invest in a new emergency hospital and a molecular genetics lab. MedLife operates six hospitals, three maternity hospitals, nine clinics, eight laboratories, 28 general medical practices, six pharmacies under the PharmaLife brand and collaborates with 135 partner clinics.
Medicover Romania, part of the Swedish Group Medicover, launched in 2012 its first hospital on the local market, following investments of some 20 million EUR. Medicover Romania intends to expand its activity on the segment of the medical clinics.
Other private hospitals are MedLife, Regina Maria, Sanador, CDT “Victor Babes”.
In 2012, a consortium of HP Romania and Novensys Corporation was selected to supply the IT infrastructure for the introduction of the electronic healthcare insurance card. The contract value is of 25 million EUR. The Romanian authorities are expected that this measure will streamline the checking of the insured patients and provide clearer information from suppliers on medical services, drugs and equipment.
b) Medical devices - sector brief
The Romanian market of medical devices increased significantly in the last years, as the level of the health spending increased and new diagnostic equipment was purchased for the hospital refurbishments.
According to published information by Espicom, the Romanian market for medical equipment and supplies is estimated at 471 million USD in 2012. Almost 90% of the medical device market is supplied by imports. The local market for medical equipment and supplies is expected to grow by a CAGR of 11% during the period 2012 – 2017 and to reach some 795 million USD by 2017.
- The International Fair of Medical Equipment and Instruments Rommedica. The 23rd edition of the exhibition takes place during 9 – 12 April 2013 in the Romexpo Center in Bucharest. In 2012, the exhibition registered 70 participant companies and some 4,000 specialised visitors.
- International Medical EXPO. The 2nd edition of the event takes place during 19 - 21 April 2013, at World Trade Plaza Bucharest. The exhibition is dedicated to the private medical services sector and it is a meeting point for private medical centres, hyper-clinics, birth clinics, labs, pharmacies etc.
d) Opportunities: FACILITIES, EQUIPMENT, DEVICES, CONSUMABLES, LABORATORY, PRIVATE HEALTH INSURANCE, BRANDS
10. FURNITURE & ACCESSORIES
According to the National Institute of Statistics, the gross production of furniture in Romania increased by 22.1% in October 2012 compared to October 2011.
During the first ten months of 2012 compared to the same period of the previous year, the turnover value index in the furniture manufacturing in Romania increased by 13.5%, according to the National Institute of Statistics.
Some of the main furniture producers in Romania are: Mobexpert Group, Elvila Group, Rus Savilar. The furniture produced in Romania includes: living room furniture, bedroom furniture, kitchen furniture, upholstered furniture, mattresses, sofas, small furniture, tables and chairs, bookcases, office furniture.
The Romanian furniture producer Rus Savitar begun in 2012 the works to expand and modernise its furniture factory located near Timisoara, with investments of some 5.2 million EUR. The investment will allow the manufacturer to increase its production capacity by five times, reaching 10,000 upholstered furniture products per month.
The Romanian furniture manufacturer Lemet has a factory in Campina that covers 30,000 sqm and produces over 360,000 furniture modules per year by processing about 1.2 million sqm of plywood. In the first nine months of 2012, Lemet recorded sales of some 34 million EUR, up by 20% compared to the similar period of 2011.
During the period September 2011 – August 2012, the Ikea store in Romania was visited by some three million persons and they spent approximately 89 million EUR. During the mentioned period, the Ikea store recorded an increase of its sales by 10.8% compared to the period September 2010 – August 2011. The store sold over 11 million products during September 2011 – August 2012, out of which 56% represented furniture items and 44% decorations and accessories.
The Greek premium furniture company Neoset re-launched its local operations by opening in 2012 a showroom in Bucharest with the surface of 600 sqm, following investments of 200,000 EUR. At present, Neoset has four stores in Romania and it intends to continue the investments in order to consolidate its presence on the local market and to have a network of ten stores in the next years. Since entering the Romanian market in 1991, Neoset has invested some 15 million EUR.
The furniture producer Lemet invested in 2012 some 400,000 EUR in the opening of five new Lem’s stores in Bucharest, Ploiesti, Iasi, Ramnicu Valcea and Suceava. The stores have sales areas of 850 - 1,500 sqm.
Casa Rusu, the retail division of the furniture manufacturer Rus Savitar, opened in 2012 its third showroom in Bucharest, following investments of 400,000 EUR. The store has the sales area of 4,000 sqm and its product portfolio includes some 1,000 items. Rus Savitar intends to continue to develop its retail network.
The Romanian furniture manufacturer and retailer Mobexpert opened in July 2012 its 12th local hyper-store, following investments of approximately two million EUR. The store is located in the Era Shopping Park Center in Oradea and covers 8,000 sqm.
The South African Investment Fund New Europe Property Investments (NEPI) acquired in 2012 the building and land of the Mobexpert store in Brasov, under a buy-and-leaseback agreement.
c) Imports & Exports
According to the National Institute of Statistics, the CIF imports of furniture and parts thereof in Romania recorded 254.4 million EUR in the first nine months of 2012, after registering 19% y-t-y growth in 2011.
Over 75% of the Romania’s furniture production is exported. The furniture manufactured in Romania is exported mainly to Germany, France and Italy.
According to the National Institute of Statistics, the Romania’s FOB exports of furniture and parts thereof recorded 1,060.9 million EUR in the first nine months of 2012, up by 5.1% compared to the similar period of 2011.
- The International Fair for Furniture, Wooden Products, Furniture Fittings, Interior Decorations, Machinery & Equipment for Forest and Woodworking BIFE. The 22nd edition of the fair takes place during 17 – 21 September 2013 in Romexpo Center in Bucharest.
- The Romanian International Furniture, Equipment and Accessories Fair. The 2012 edition of the fair recorded 215 exhibitors from UK, France, Germany, Italy, Poland, Bulgaria, Republic of Moldova and Romania on an area of 24,000 sqm. The 2012 edition registered some 22,000 visitors.
e) Opportunities: COMPONENTS AND PARTS, MATERIALS, BRANDS, STORAGE, TECHNOLOGY, TOOLS, QUALITY CONTROL
11. COMMERCIAL REAL ESTATE AND HOSPITALITY
In recent years, high-end stores and good brand names have been successfully making their way into the Bucharest market. Shopping in the city can be an exciting experience with the presence of art galleries and high fashion boutiques. Bucuresti Mall, Plaza Romania Mall, Unirea Shopping Center, AFI Palace or Sun Plaza are the famous malls that are frequently visited by the tourists and that provide a range of shopping alternatives.
Opportunities: FRD Center currently holds a sell mandates for a Prime high street luxury store in the center of Bucharest (10,000 square meters of renting space)
The multi-level store was built over 30 years ago and is a traditional, strong brand as well as a major landmark in Bucharest, being located in the very center of the town - the prime area in Bucharest for luxury stores, shopping and leisure. It has recently undergone a total consolidation, redecoration and re-branding process following a 25 mil EUR investment, which gave it a modern, luxury look and feel, and was re-launched in 2010. It has 10,000 square meters of renting space, currently most of them rented out to international and local famous designer brands, coffee shops and other luxury goods retailers as well as a 200 cars multi-level parking section. It also has a high-tech, profit-making by itself multimedia façade, one of the largest in Europe, designed by a world-famous designer. Being by far the largest upscale store in a high street location in Bucharest makes this opportunity quite unique in Romania. Sale as an asset is being considered by the owners, starting asking price is 50 mEUR.
The Black Sea is the country number-one tourist resort, with more than 70 km of white, sandy beaches. If you're fed up with castles, the rural life or the big city life, you should do as the Romanians do: go recuperate by the sea. Here, you'll find long white-sand beaches, where you can enjoy your holiday, do all types of watersports, from skiing and waterskiing to snorkeling and diving. Paragliding can also be an exhilarating ride high above the water. The area is very scenic for hiking, cycling or touring by car..
The area is also known for its excellent nightclubs, bars and discotheques. After a night out one can enjoy some excellent spa-treatments in the numerous thermal-water and therapeutic mud modern spas.
Opportunities: FRD Center currently holds a sell mandates for an upscale four star hotel, conference and wellness center / spa.
Situated in prime location with immediate access to the beach (50 meters) and to shops, bars and restaurants, close to the center of one of the most fashionable, elegant and vibrant seaside resort in Romania, it has recently undergone a total consolidation and redecoration process following an 18 mEUR investment. Whole new sections (wellness spa, club and conference center) were added to the initial 242 guests capacity hotel. The recent investment maximizes on the traditional strong brand and makes the spa-hotel one of the most important players in the Romanian seaside hospitality segment, currently reaching occupancy rates of 110%. Sale as an asset is considered by the company that owns it, indicative asking price: 18 mEUR.
If interested please contact us - FRD Center: email@example.com
For other commercial and investment opportunities in Romania and the region, please feel free to contact us directly.