ANTEEA ESTATE 2014

ANTEEA ESTATE 2014

Anteea Estate www.anteea-estate.ro

Contents

Anteea Estate

Property Management - Case Studies

Other Services/Investment Oportunities

1

2

4

33

Market Brief 2014 5

Our Profile/ Our Services

Summary

• Our Profile• Our Services in Romania• Case studies• Investment opportunities: building in historical centre

90% occupancy rate/ land plot investment opportunity

• Conclusion: Why Anteea Estate?• Our Team

Our Profile

• Anteea Estate is a specialized real estate consulting firm founded in 2002 with an experience of 12 years on Romanian market;

• Specialized in providing real estate consulting services, covering a wide range of services;

• Specialized professionals with over 10 years experience for each range of offered services;

• Market research services for our internal use or offered to our clients;

• Clear working procedures that ensure a high level consistency and the high quality of our services;

Our Services

Representing OUR CLIENTS with/in: • CAPITAL MARKETS (investments, sales, acquisitions);• CORPORATE OCCUPIER & INVESTMENT SERVICES (leasing,

lease administration, transaction management);• LEASING (tenant representation, office leasing, landlord

representation, transaction consulting, localized retail services);

• VALUATION ( Advisory Services, Business Valuation, Portfolio Valuation, Valuation for Development – Residential, Office, Retail);

• PROPERTY/PORTFOLIO MANAGEMENT (Property/Asset Management, Facilities Management, Lease Management, Lease Administration, Risk Management).

Market Segments

Our Clients

Capital Markets Professional Services

Land plots market

Office Market

Residential Market

Commercial/Retail Market

Investment opportunity – Bucharest historical center

Lipscani 43 building – commercial spaceLipscani 43 building – commercial space

Photo Lipscani 43

Gang entrances – Blanari & Lipscani streetGang entrances – Blanari & Lipscani street

Photo Lipscani 43

Gang viewGang view

Lipscani Building Characteristics

• Location: Lipscani 43, in the historical center of Bucharest; 3rd district.

• Total GLA: 326.62 sq.m. / Leasable area: 297.43 sq.m.

• Structure of building: P+2, attic and basement.

• Utilities: water, gas, ventilation, waste.

• All utilities, cleaning, security services are covered by tenants.

Lipscani Occupancy Rate

• 90 % occupation rate from the beginning.

• Income from current tenants totals 340,000 Euro/ year.

• All lease increase each year due to market growth.

• The majority of lease contracts are long term contracts.

• There is an additional space of 150 sq.m .that can be transformed in a roof terrace ( there are no roof terraces in the historical center).

• SALES PRICE: 3,500,000 Euro

Property Management – Our Services

City Point ResidenceCity Point ResidenceAdora Urban ResidenceAdora Urban Residence

Property Management – Our Services

Green Vista ResidenceGreen Vista ResidenceSevastopol ResidenceSevastopol Residence

Text

Land / Investments– Our Services

Land plot Aleea Teisani Land plot Aleea Teisani

• Land plot within the built-up area – northern part of Bucharest – one of the most expensive zones as well as the most modern of the capital;

•Size: 25,045 sq.m according to measurements;

•Placement: in the 1st district of Bucharest, in the north zone of the capital , close to Baneasa Forest and the ring road; across the street from Philip Morris building;

• 2 ways of access – the access to the land plot is easy and facile, through the paved roads – first from DN1 Bucharest – Ploiesti and second from the road ring of Bucharest.

Assesment Summary

• Land plot “ Gura Calitei”, close to Policolor Dye Factory, next to Domus electronics and electro domestics store chain/ Location: 3rd district, Bucharest;

• Benefiting from zonal urban plan: P+2 + attic/ P+8.

• The purpose of assessment: sales/ possibilities of development.

• Market value of property: 120 Euro/ sq. m.

• Last review date: August 2014.

• Result of assessment: the land is suitable for residential development.

• Utilities available :water, gas, electricity, waste.

Land plot location

General data of the area

Placement: south –east area of Bucharest. The area with the biggest growth potential starting from 2013.

Catchment area: Primary : over 342,541 inhabitants (20.4% of the total population of

Bucharest); Secondary : 302,430 inhabitants - 282, 215 inhabitants ( 16.8% of the

total population of Bucharest) + Popesti Leordeni - 20, 215 inhabitants; Tertiary: 282,215 inhabitants ( the other half of districts 2 & 4); TOTAL: 927,186 inhabitants;

Access : the access to the land plot is easy and facile, through the paved road (by car) or through public transportation: 8 bus lines, 3 tram lines and 1 metro station – Anghel Saligny.

Photo area / land plot

Nearby construction of new residential Nearby construction of new residential

Photo area / land plot

Anghel Saligny metro station/ Land plotAnghel Saligny metro station/ Land plot

Office / Investments– Our Services

• Land plot: 595 sq. m.; Total built area: 3447 sq.m. •P +3 – composed of administrative office space, office and storage downstairs with area of 1,149 sqm and ground floor with a usable area of 2,930 sq.m.•Utilities: central heating, air conditioning, water, electricity, gas and sewage.•The building is 90% occupied. Sale price is €1,400,000.

Vitan Office BuildingVitan Office Building

General View of Romanian real-estate market - 2014

The Romanian real-estate market transactions were around 402 million Euro in the 1st half of 2014 and the entire transitioned surface was over 692,000 square meters.

Compared with first half of 2013 the market reported an increase in investments of 222% (3. 22 times);

In comparison with the entire year , the increase in the first semester was of 17%.*

Due to increased investments the prime yields for the office market suffered a compression from 8,25% to 8%.

The rest of prime yields remained unchanged. *

The prime rent was relatively stable for the commercial centers – 60 Euro/sq.m. / month; 18 Euro/sq.m./month for office space and 3.8 Euro/sq.m./month for industrial properties. *

* According to a CBRE market report

Retail space – Romanian market 2014 -

• Retail sales grew by 7.8% in the first five months of 2014;

• Occupier demand in Q2 was for the most part stable. Interest

• was focused primarily on large cities;

• On the supply side, this year’s new shopping centre supply will

• represent a 12-year low, with only 4,170 sq.m of GLA delivered in the first half of the year and 30,000 sq.m under construction and set to be completed in H2.

• There are, however, four schemes under construction and due to be added to the market in 2015 and 2016, consisting of approximately 210,000 sq.m of GLA – 3 in Bucharest and one in Brasov.

• Several new projects and extensions have the potential to begin construction in the following months, potentially adding a further 230,000 sq.m of GLA

Retail Space – Romanian market 2014

Office space – Romanian market 2014 -

• Q2 office take-up reached 89,500 sq.m in Bucharest, marking a 47% growth on previous quarter especially on the back of 3 major deals: Orange (13,700 sq.m), Ericsson (16,000 sq.m), Volksbank (8,000 sq.m).

• New leases accounted for 40% of take-up, followed by renewals (29%), expansions and pre-leases each with 16%.

• Relocations represented 43% of take-up, while 30% was new demand.

• Over the quarter 46,700 sq.m of space was delivered in Bucharest taking overall stock levels to 2.1 million sq.m of which approximately 75% is Grade A.

• Pipeline activity recorded an increase to 172,000 sq.m, out of which 76,600 sq.m is due for completion over the remainder of the year.

• With approximately 34% of the H2 2014 pipeline being secured under pre-let agreements, vacancy rate is expected to remain around 13% as during the last 4 quarters.

• Outside the capital, Cluj-Napoca has the most active development with 36,000 sq.m having announced delivery in H2, further to the 19,000 sq.m completions of H1.

Office space – Romanian market 2014

Office space – Romanian market 2014 - Bucharest

Office space transactions first half - 132,000 sq.m., an increase of 27% from the same period last year.

Most of the rentals, approximately 40% of the total were made in existing buildings.

According to real estate specialist it seems that 2014 will turn out better than the previous one (2013) in terms of office transactions.

The motor of the growth, in the first semester was relocation( 61% of total) , as opposed to segment of contracts renewals (declining with 33%).

The relocations totaled 106,750 sq.m competing with contracts’ renewals, which totaled only 25,259 square meters and have suffered a setback of 33% compared to the same period last year.

Pre-lease contracts for buildings under construction represented over half of the relocations in the first half of 2013 (32,800 square meters). This year, most of the spaces were occupied in existing buildings a surface of 57,573 sq.m. (40% of total).

largest share accounting for transactions over 3,000 sq.m. space, with 44% of the total, a share more than double from last year.

www.anteea-estate.ro

Your partner for growthCONTACT: Roxana Pavel, Acting General

Managerroxana.pavel@anteea.ro

+40722222021