Bucharest is teeming with industrial halls, either out of use or still operational. Beside these spaces, the former state-owned enterprises also have huge plots of lands, for which no use has been found in a long time. The owners are not using this potential, either because of low demand or because they are unaware of the "treasure" they own.
"Industrial spaces will experience a boom in the next years, while investors who bought the state-owned enterprises will gain a lot," says Alexandru Nitu, head of the project and investment department of real estate company Regatta.
Some analysts even say that several plants were bought especially for their assets (lands and halls), as investors were very little interested in the companies' core activity. This is the case of Granitul and the milk plant in Militari district. For instance, the first Cora hypermarket in Romania is being built at Granitul, while market sources say that the second Cora will be built in the perimeter of the former milk plant, which was pulled down last year.
On the other hands, analysts say that owners hold on to their assets in the attempt to derive a minimal income while they wait for better market conditions. Maintenance costs are very low, but development perspectives for the area (such as the construction of a hypermarket or a highway) could send the properties' prices skyrocketing.
Several companies have already disclosed plans for their lands. For instance, drugmaker Sicomed owns some 40 hectares of land, but intends to keep using only three hectares, after completing the restructuring strategy. The company is planning to either sell or rent the rest of the land.
The piece of property lies in southern Bucharest, on the Theodor Pallady Blvd, close to the future Bucharest-Constanta highway.
"Our land could be used to build storage facilities. However, we are in no hurry to sell, because prices are still low, 4-5 dollars/square metre, and we should invest some $2m to prepare the land," says Klaas Postema, Sicomed general manager.
Given the current prices, Sicomed would cash some $1.8 million for the piece of land. "We expect prices to go up to 15-20 dollars/square metre in the next few years, which would push the land's value up to 5-7 million dollars," Postema mentioned.
Another big Romanian company looking to enter the real estate business is Policolor Bucharest, which owns property on Theodor Pallady Blvd, near Sicomed.
bogdan.neagu@zf.ro ; laurentiu.ispir@zf.ro
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