More companies are looking to have smaller hubs in regional cities spread across the region and the same goes for Romania, where there is interest in cities that have not been on the map so far – Loredana Oprisa, Leasing & Development Manager at Helios Phoenix.
As soon as the pandemic began, we focused even more on communication with our clients, making sure that all sites have the necessary safety measures taken through additional steps added, this being different depending on the client’s activity. Each tenant adapted to the situation to their best possibilities, some splitting shifts, some having their own check points to sanitize and control temperatures before entering/ leaving the workplace.
What is the status of your projects / investments for 2020-2021?
The ongoing construction sites, located in Brasov and Timisoara, are going forward without any changes, of course we had to take extra safety measures as we continued. As for the projects we had in plan for Cluj, Constanta and some other locations we will have to look how the economy will develop in the next few months to be able to reorganize our development calendar accordingly. Of course, we are continuously looking at BTS projects, even in locations that we are not yet present.
Which are the advantages of your business and products, going forward? What are your expectations from the public sector?
The advantage for the industrial sector, especially for the logistics part, lays mainly in the fact that during these times the e-commerce sector grew and that brought along an increase of volumes to be handled, hence the need for storage space went up in some industries. Also, a positive impact is expected in production area as some companies are switching their focus on local resources as to not be exposed in case something like this were to happen again and supply chain might be disrupted.
The expectations from the public authorities go towards having them support the industrial sector through constant legislative improvements. More attention should be paid towards supporting business owners, through different channels like state aids and easier access to information and funding.
What transformations you expect in your sector?
We believe there will be an increase in e-commerce sector as more and more companies are looking to expand in this area, if they are not already there. As most companies are looking to have a better coverage and a more sustainable supply chain there will be some changes in how they do their location analysis. As it seems, more companies are looking to have smaller hubs in regional cities spread across the region and the same goes for Romania, where there is interest in cities that have not been on the map so far.
I believe it is too soon to tell, but as consumption levels overall will go down, there will be some pressure over the economy and that will have an impact over future developments. By the end of the year we should be able to have a clearer view of how 2021 will look like. Regarding labor force, even if many people have returned, I find it hard for the economy to retain and accommodate a big part of them. In this matter the public – private sectors should work closer together and come up with better ways to bring them “back home”.
What is your message to clients and partners?
We are in this together and we have done and continue to do our best to work with our clients towards finding the best solutions. We believe that a crucial thing during these times is to prove the power of the long-term partnership established over the years. Our focus is on BTS projects in the core cities but also in other strategic locations.
Helios Phoenix has been actively operating and trading in Romania since 1997. Since 2003, with the construction of their first Industrial Park in Domnesti in the south western outskirts of Bucharest, the group’s activities have mainly centered on the industrial real estate market and related services. In 2005 Phoenix commenced the development of Mercury Logistics Park and joint ventured with Helios Properties UK, a major British industrial developer to form Helios Phoenix in order to undertake industrial developments across Central and Eastern Europe. During the period 2006-2007 Helios Phoenix established joint ventures with GE Real Estate and Cal East Global Logistics for industrial developments in the Central and Eastern European region and agreed forward funding sales with CB Richard Elis in Eastern Germany and Heitman International in Romania. In 2010 Phoenix acquired The Helios share of the Joint Venture thereby increasing its stake in Helios Phoenix to 90% and remains active in the Romanian Property Development Market progressing the various industrial and residential developments of the Joint Venture. To control its operations, Phoenix is organized in independent Romanian companies which own the properties with Cypriot Holdings companies on top. The management however is centrally controlled by Phoenix as being the overall Project Manager of all the properties either wholly or partly owned. Helios Phoenix Portfolio is made of 3 existing industrial parks and 3 other locations with available land bank for future developments, these being in different phases of permitting. Bucharest, Timisoara and Brasov add up to a total of 145k sqm, split between tenants active in logistics and production. Helios Phoenix is an expert in customized buildings having in its portfolio but also in past projects developed and sold be it units for frozen and temperature-controlled goods, production facilities or for light storage purposes.
An article published in the exclusive supplement – “Market pulse report, Romania – The new normal” | June 2020
A property market tour, including major cities, with projects status and updated opportunities at the end of the lockdown in Romania – June 2020. | Essential news with the current status of further investments, clients and partners relations, new priorities for the post crisis cycle. | B2B communication report – to help you mark your statements during the changes period.
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