Shopping centres in Romania invest €500,000 in reopening

17
Jun
2020
News - Shopping centres in Romania invest €500,000 in reopening #Colliers #coronavirus #reopening #report #retail #Romania #shopping

by Property Forum | Retail

Shopping centres in Romania have reopened on June 15. In total, investments in all equipment, supplies and staff needed to ensure compliance with the safety and social distancing measures that are still needed to prevent the spread of coronavirus. exceed €500,000 for large shopping centres, according to Colliers International consultants. Shoppers will gradually resume their pre-pandemic habits and traffic in the malls could return to normal during the Christmas season.


Non-food retailers were among those most affected by measures taken during the state of emergency to prevent the spread of coronavirus. The closure of shopping centres has determined retail tenants to revise their revenue expectations for this year, with 45% expecting a drop of more than 30% and 39% expecting a drop of up to 30%, as showed in a study conducted in March by the retail division of Colliers International among 84 tenants and 21 owners in the retail sector in Romania. However, the tenants rely on the summer months to start recovering losses accumulated during the period when the stores were closed, even in the context of an estimated number of visitors at half the level from usual periods. Traffic is expected to increase in the next period and could return to normal in December.

Mobility statistics published by Google, based on data collected from users’ smartphones, suggest a gradual, but consistent recovery of the traffic in commercial and leisure areas. In Bucharest, Cluj-Napoca and Timis, pedestrian traffic in these areas was 30-40% below a regular average at the beginning of June, compared to 80% below normal levels a few months back. In countries where restrictions were lifted earlier, figures look somewhat better and offer hope that the gradual improvement will continue in the next period.

"The reopening of shopping centres starting 15 June is welcomed by shopping centre owners and tenants, which are expecting to begin recovering from the period of inactivity, even if at a not very fast pace, given that visitors will gradually resume their pre-pandemic habits. For the safety of shoppers, malls and shopping centres have taken all necessary safety measures during this period and have established clear procedures for disinfecting common areas and ensuring social distancing, and many retailers will also come with additional measures in their own spaces", says Simina Niculiță, Partner & Head of Retail Agency at Colliers International.

Thus, among measures taken by large shopping centres are gates or special rooms through which the body temperature of visitors can be measured or systems for monitoring the total number of visitors at any time within the centre, so as to limit access to others visitors when the maximum limit set according to the authorities is reached. At the same time, shopping centres are ready to constantly disinfect common areas and escalators with specialized substances or UV lamps and will provide visitors dispensers with disinfectants, and as an additional measure will opt for the introduction of fresh air from outside instead of previous procedures for recirculating air inside the centre.

"Shopping centres have made and continue to make substantial investments in order to provide a safe experience for buyers, respecting all measures to prevent the spread of coronavirus. The transition from the period of inactivity to the new retail rules can be made easier, as visitors' confidence increases, and the activity has all the prerequisites to return as soon as possible. Almost 70% of retail space owners and about half of tenants expect to return to a satisfactory level of business, compared to the levels before the Covid-19 epidemic, during the next year", says Simina Niculiță, Partner & Head of Retail Agency at Colliers International.




New leases

  • UDH, one of Poland’s largest distributors of premium imported beers, has leased approximately 1,400 sq m of modern warehouse and office space at the Park Rysy Kraków distribution centre. The tenant, which has chosen to expand its operations in southern Poland, was once again represented by AXI IMMO.
  • Golden Star Estate has secured a long-term lease agreement with global technology solutions and consulting provider C&F for nearly 1,900 sqm of office space at the Konstruktorska Business Center. Following the transaction, the property, located in Warsaw’s Mokotów business district, is now almost fully leased. The Polish branch of C&F will officially relocate to the facility at the beginning of 2027.
  • Natland Group has committed to its long-term presence at Prague-based Rohan Business Center through a lease extension covering 2,004 sqm of office space, together with storage facilities and dedicated parking spaces, in a deal brokered by iO Partners.

New appointments

  • Indotek Group has announced the appointment of Diederik Bakker as Group Chief Investment Officer and Group Head of Asset Management. In his new role, the Dutch real estate investment professional will gradually assume responsibility for the company's ITAM (investment, transaction, and asset management) activities across 12 European countries, supporting the next phase of Indotek Group’s growth. His focus includes facilitating sound investment decisions across Europe and developing a group-level portfolio management strategy that combines local market knowledge with international asset management know-how.
  • Peakside Capital Advisors has appointed Bogi Gabrovic to advise the board and support its investment and acquisition activities in Poland. Gabrovic brings more than 25 years of CEE real estate experience to the role, having previously held senior executive positions at CTP, Golub & Company, and White Star Real Estate, where she managed transactions exceeding €2 billion.
  • Katarína Brydone, Jana Vlková and Vendula Maršová have been appointed as the first Equity Partners of Colliers’ Czech business. Brydone brings more than 20 years of experience in international real estate. Vlková has more than 25 years of experience in commercial real estate. Maršová, Partner and Head of Valuation and Advisory Services, brings more than 16 years of experience in real estate valuation and advisory.

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