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TETAROM, new dimensions for business

“The success of the prior projects -Tetarom I, II and III and the high demand of business facilities or spaces were the main ingredients for Tetarom development strategy. We are focusing mainly on increasing our business facilities offer, diversifying our services, business support and networking for our clients”, Octavian Fodor, deputy general manager, TETAROM SA, reveals the plans for the new milestones to be achieved by the renowned company.

 

Published in “Romania’s Real Estate Yearbook 2020”, launched in September 2019, click – here, to read online

 

Which are the main projects initiated by TETAROM and under development for 2019-2020?

Well, first of all, the inauguration of Tetarom I extension project. We have come to this point and now we are able to offer our investors more than 50 new office spaces and 17 warehouse modules, in our 3 new buildings. Second, for Tetarom III – we are in the process of signing contracts for the last 5 ha of available land there (last 2 plots). Tetarom III was from the start and will remain a 100% successful project among all Tetarom Industrial Parks. Third: Tetarom V Industrial Park in Luna, near Câmpia Turzii – our newest project kicks off. We are set to go with the design and development. And last, but definitely, not least, TETAPOLIS our rising star. We are in the process of finalizing the feasibility study which will draw us an exact portrait of what we can build there, with what costs, help us identify the best financing sources and what is the estimated income and the return of investment.

What determined TETAROM expansion and how would you define the evolution strategy for its business model?

I believe that our greatest advantage in the development of TETAROM Industrial Parks comes from the fact that Cluj-Napoca has a unique blend of qualified labor force that thrives in companies that are research and production oriented. This unique blend has transformed Cluj into a magnet for foreign and national investors alike, radically changing the local business landscape in a short period of time. TETAROM project began with a spontaneous evolution, dictated by market needs, but in the past years we were particularly focused on a systematic development approach. Each TETAROM Park harnesses a particular set of advantages, such as location, available workforce or road connectivity, thus making each individual Park suited for a specific target of clients. As far as our strategy for the next few years, from my point of view, the era of industrial parks as we know them is at its end, and I believe that now is the time to shift existing industrial parks to eco-industrial parks. This requires a very specific approach in terms of systematic expansion of industrial symbiosis, and we have already begun to take the first steps in this direction.

Which are the major milestones achieved by TETAROM so far, its impact for the region and the benefits for the residents?

Our present status is „fully operational” (in all 3 parks) and „developing” (the other 3: IV & V and Tetapolis Science and Technology Park). To summarize the milestones of Tetarom, so far, just let me give you the cold numbers. TETAROM I: 110 companies, over 3,000 jobs on 320,000 sqm – 100% occupied and operational. TETAROM II: over 2,900 jobs; 120,000 sqm – 100% occupied and operational. TETAROM III: over 7,000 jobs, 25 clients, 1,540,000 sqm – 97% occupied, 100% operational.

How is the company involved in projects of the local community, what type of partnerships are implemented or what type of events do you support to stay in connection with the HR/ talent pool in the region?

Through Tetapolis Science Park, Tetarom Business Incubator and through our partnership with Cluj universities we aim to foster academic research and to sustain any start up or spin off project that shows potential in developing the local HR talent pool in the region, and stops the brain drain to western countries. This is the main reason for which Tetarom company was founded and still remains our top priority goal on a long term. Tetapolis, as any other successful STP, is focused solely on harnessing the local, regional and national qualified workforce, primarily focusing on R&D for large companies as our main clients. We can accommodate a growing number of R&D based startup companies as well and we can help them market their research or prototypes trough our IASP network. This is an incredible advantage for a young entrepreneur simply because, trough Tetapolis and via IASP, he gains instant access to a large international market. If you add to this the fact that we are constantly up to date in terms of R&D market needs as they arise trough IASP network, and we can offer a unique insight throughout the development phase of the project, you get the perfect recipe for a successful startup.

Which are the factors that influence in your opinion the market evolution for Cluj-Napoca, the demand for industrial – logistic spaces?

Cluj-Napoca has developed tremendously in the last decade. Local, national and foreign investors have practically invaded the county with new thriving businesses. There is a „hunger” of space, rental space, buildings and logistic spaces of all sort: new, old, refurbished, ready to lease, you name it! The companies expand continuously, hire new people, and accommodate them as they see fit. But judging by the office and logistic space demand and by renting fees and acquisition costs, I think there is a very good market for logistic areas, logistic and Techno – Industrial parks inside, as well as outside the city, all over the county. Cluj-Napoca has been for a few good years now a technical, university, social, cultural and business hub. This concentration of working hubs will undoubtedly generate additional needs, and yes logistic space in particular is one of those needs. It stands to reason that if you continue to generate new business, eventually you will have to supply them in a faster more efficient manner. And I`m not talking solely of companies here, I`m also taking into account the local consumer base that has grown consistently, and it will continue to grow. With the expansion of the local airport, Cluj will become a logistical hub, perhaps the most important one in Transylvania.

What do you expect for the next two years in terms of market attractiveness, country development potential in the region, new projects announced by developers or investments in certain sectors?

Cluj-Napoca is well marketed among the competition inside the country or in the CEE countries. We know our competitors and without any lack of modesty we are doing great! We can compete with any European city in terms of business location and attractiveness, business incentives, local administration, evolution of the markets, economic and business trends and promotion. Cluj-Napoca and implicitly, Cluj County have a huge development potential because it has become an innovation pole of the entire country, a business model for the surrounding regions. The number of companies established here, the number of newly created jobs, as well as the total value of attracted investments, speak for themselves. There are many new projects announced by investors in Cluj County and some of them are inside Tetarom Parks. I would mention just a few which are developed by some of our major clients: Robert Bosch, De’Longhi, Transilvania Constructii, Castolin Logistic, Agressione Group, Kadra, Energobit, Banca Transilvania, Emerson, Rebak Ingredients, Media Young, Cosmetic Plant, Carbia, Impro etc. They all build ready to lease facilities, innovation areas, and high end office spaces. Cluj County has so much untapped potential left. For us Tetarom was a lesson that we taught ourselves. It took us a while to understand the local particularities of the market, to correctly asses the potential of each region in Cluj County and to develop the right setup for each existing and future location. There is great value in workforce, location and specialization in every part of this County, thus the potential for rapid development exist, it just needs to be harnessed in a smart way, taking into account every single measurable local advantage available. Any investor that passes our door steps can find in Cluj County Council and Tetarom SA, two reliable partners and unconditional support for his business!

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Available now – “Romania’s Real Estate Yearbook 2020”, order your complimentary copy, 7th edition, exclusive – read here

Romania’s most comprehensive investment guide – unique concept | office & innovation parks | logistic & industrial parks | investment opportunities | international events guide, leading business contacts | opportunities for 2021: residential, retail, HoReCa | exclusive distribution at selected B2B in Romania and in Europe | tailored distribution directly to companies – the most diverse business areas | print & online editions, September, premium, English, country support in international events.

Strategic Partners: WDP & Globalworth | Office Partner:  Speedwell | People Flow Partner: Kone | Logistic Partner: DPD | Innovation Partner: Sixense | Headline Partners: Zacaria, Immofinanz, Colliers, Anchro Grup, Electrogrup, CBRE, Brisk, Transilvania Constructii, Avitech

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