05. Juli 2012 Print
Brasov with potential to absorb two modern shopping centers until 2015
The modern retail stock in Brasov only counts 52,206 sq m to date, consisting mostly of small to medium schemes, none of them having a dominant position within the city in terms of critical mass, concept or tenant mix. Most of the projects have been launched between 2004 and 2008 and have surfaces smaller or equal to 10,000 sq m GLA.
|Brasov retail stock – 2012|
|Star Shoppping Center (*)||department store||1975, refurbished in 1990||16,000 sq m (GF+B+3F)|
|Eliana Mall||second generation mall||2004||10,000 sq m (GF)|
|Macromall||second generation mall||2005||7,506 sq m (GF+1F)|
|Magnolia Center||second generation mall||2006||7,600 sq m (GF+1F)|
|Unirea Shopping Center Brasov||urban mall||2008/ Q1||18,000 sq m (GF+3F)|
|Brasov Retail Park||strip mall||2012/ Q1||5,300 sq m (GF)|
|Carrefour Gallery||Hypermarket gallery||-||3,800 sq m (GF)|
|Total modern stock||52,206 sq m|
(*) Star Shopping Center hasn’t been calculated to the modern retail stock, as it has been launched in 1975 and refurbished in 1990.
With a shopping centre stock per capita of 0.199 sq m, Brasov has room for development, especially if compared to other cities in Poland, Czech Republic and Hungary. Eight new retail projects have been announced in Brasov for the following years, four of them having declared delivery dates before 2015. “The market cannot absorb this stock within the mentioned timeframe and we believe that the projects due to deliver first have the best chances to succeed if correctly developed – in terms of location, critical mass, concept, tenant mix etc.” commented Razvan Sin, Head of Retail Department, DTZ Echinox.
Only one project will be delivered in Brasov in 2013 – Coresi Shopping Center, developed by Immochan and leased by DTZ Echinox. The shopping center will be located on the grounds of the former Tractorul industrial platform. Construction of the shopping mall will begin this year and it expands over 24 hectare of land out of the total 100 hectares which Immochan bought. The project features a 16,000 sq m Auchan hypermarket – the largest in Transilvania region, a 25,000 sqm GLA shopping mall and a parking with 3,000 places. The company will invest €55-60 million in developing the first phase of the shopping mall in Brasov, due to be delivered at the end of 2013.
|Brasov retail pipeline – 2013-2015|
|Project||Type||GLA (sq m)||Developer||Estimated delivery date|
|Coresi Shopping Center||Urban mall||26,000||Auchan and Immochan||2013|
|NEPI project - extension||Attached mall||N/A||NEPI||2014|
|Korona Mall||Urban mall||25,000||Echo Investments||2015|
|Riofisa Center||Urban mall||47,000||Riofisa & Tiriac Holding||N/A|
|IUS project||Urban mall||41,000||Immoeast||N/A|
|Roua Retail Park||Retail Park||N/A||Immoeast||N/A|
The research methodology takes into consideration the current retail stock in Brasov, the pipeline projects and their delivery dates, confronting the data with those of two comparable cities in Hungary – Szeged and Debrecen – considered as a benchmark. The valuation weights the modern retail stock per sq m, adjusted with the purchasing power of the population in the respective countries and estimates a constant evolution of the population.