Brasov with potential to absorb two modern shopping centers until 2015

DTZ Echinox released the first part of an analysis on retail absorption in the major cities in Romania. According to the findings of the study, the retail market in the city of Brasov can still absorb a range of 45,000 – 65,000 sq m of modern retail spaces until 2015, in the form of urban malls, attached malls, outlet centres or commercial galleries.

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
Name	Type	Launch-Year	GLA
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
Corall	Attached mall	N/A	Cora	N/A
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.