After beginning construction of the second phase of the NGB Distribution Center in Bragadiru at the end of last year, near Bucharest, the project’s developer, NGB Construction & Management, says it will complete works by early 2016. The project’s first phase (6,100 sqm) was delivered in 2011 and the second phase will add 18,000 sqm (GLA). The investment in the entire project (50,000 sqm) is estimated at over EUR 20 million, not including the price of the land and soft costs.
“Upon completion of the first phase we were fortunate to rent it all to a multinational. Soon afterwards the market was hit by internal and external economic factors which led to the overall ‘real estate crisis’ in Romania – thus we had decided to slow down regarding this project. Over the last year, however, we have been approached by various operators in need of warehouse space, but did not have an existing structures available for rent – thus we decided to continue developing the NGB Distribution Center (18,000sqm) and our other project in the SE of the Ring Road, known as the PL Distribution Center (10,000sqm), and offer the Bucharest industrial market 30,000sqm of industrial space in 2015 – 2016,” Nicholas N. Bouri, the general manager of NGB Construction & Management, told BR.
The developer is now in negotiations with several potential tenants. “We have just announced the second phase and we will start looking for tenants. Our flexible designs and location allow for a variety of tenants from logistic and distribution companies to service providers,” said Bouri.
Romania is becoming increasingly more attractive for investments in logistics and warehouse developments because of its location and increased production capacity in fields such as agriculture, IT, and trade commodities, he added. “The situation in Ukraine has also had an effect on Romania and in the industrial real estate sector – many operators in Ukraine are relocating to Poland or Romania to operate in a safer environment,” he went on.
Companies are mainly looking for space for warehouses (50 percent of last year’s transactions), for manufacturing facilities (35 percent) and logistics spaces (16 percent), added the GM.
In addition to the project in Romania, NGB Consctrution & Management is planning to start two more developments next year – one in Greece (10,000sqm) and one in Serbia (30,000sqm).