Vitalis Consulting Is Leading the Construction Of Mercure Sibiu Park Arini Hotel Complex

mercure hotel complex sibiu

Vitalis Consulting was appointed by Arini Hospitality SRL, part of Compa group, to coordinate the construction works for Mercure Sibiu Park Arini Hotel Complex, a new hotel project to be developed in Sibiu.

The project consists of the development of a new hotel complex ideally located in downtown Sibiu less than 10 minutes away from the historical center, on Victoriei Boulevard, opposite the Sub Arini Park where the former Arsenal factory used to function.

Vitalis team will coordinate the construction of a new building with two bodies, the main building mainly housing the related facilities and services, such as a restaurant, kitchen, conference, and events rooms. Moreover, future guests will benefit from underground parking.

The new 4-stars Mercure Hotel will encompass 121 modern and comfortable rooms, a restaurant, lobby bar, and lounge, a SPA area with an indoor pool, and a fully equipped gym, available for both guests and locals.

Furthermore, the new hotel will have a specific arrangement that combines sidewalks and the roadway with green spaces, an important green area being arranged around the buildings. Parking lots will also be available.

In terms of the buildings’ design, a contemporary architectural approach will be followed but not irreverent towards the architectural patrimony specific to the city center.

Compa is the largest automotive components manufacturer with local capital in Romania, having a history of over 130 years of experience in providing great quality. The company is one of the biggest Romanian exporters, covering 23 countries on 3 continents.

In over 16 years of activity in the construction management field, the Vitalis team has gathered an impressive portfolio of hotel developments, as we coordinated the construction works for 14 hotels totaling over 3500 rooms all over Romania and abroad.

A Record Level of Over 1 Mil Sq M Have Been Transacted In 2021 In The Logistics Market

The local logistics sector has not only shown resilience during the pandemic but went on to benefit from consumer and business reactions to the sanitary crises. Thus, the leasing activity in 2021 has exceeded the 1 million sq. m threshold for the first time in the market’s history. Net take-up accounted for over 80% (802,000 sq. m) of the transacted volume and continues to be the main driver of the market, according to real estate specialists.

Companies have accelerated their expansion plans in the last quarter of 2021, the demand for industrial and logistics spaces reaching a record level of 441,000 sq. m, which represents 44% of the entire 2021 volume.

The broad expansion of e-commerce, both geographically and in terms of product range, was among the key drivers of demand over the last year. In this context, the take-up was mainly generated by companies active in the distribution and logistics sectors, and by retail, FMCG, e-commerce operators, these companies being responsible for 50% of the traded volume.

Other active sectors were the automotive, manufacturing, pharma, or courier industries, with almost 200,000 sq. m rented. Bucharest attracted 67% of the 2021 transactional volume, while Timisoara, Brasov, and Oradea have been the most dynamic regional markets.

In terms of new deliveries, the full-year new supply reached 530,000 square meters, corresponding to an annual decline of 18%. A sustained occupier demand resulted in the vacancy rate decreasing to 4.2% in Bucharest and 3.5% across Romania.

 The Logistics Market

The strong demand for logistics and industrial properties combined with low vacancy rates encourages developers to continue their portfolios’ expansion. The pipeline reveals almost 600,000 square meters of new spaces planned for delivery in the next 12 months, with more than 50% of those spaces being located in Bucharest. Timisoara, Brasov, and Cluj will also benefit from new industrial and logistics premises in 2022, but there is also a clear interest towards secondary and tertiary cities driven by the recently increased demand for such locations.

The market continued to be highly dynamic in 2021, driven by a demand coming from various economic sectors. The most active companies in terms of demand come mostly from traditional retail, e-commerce, logistics, and distribution. We are pleased to observe that a large number of transactions (over 30) with an area of ​​more than 10,000 sq. m have been closed, which gives us confidence that the logistics and industrial market in the country will continue on this impressive development trend. Romania is perceived as an attractive destination for international companies as a result of its geographical connections with Central and Eastern Europe, the Balkans, and the Middle East, and also in terms of the workforce quality and availability and the overall wage level.


Market Outlook 2022: The Investment Market in Romania

Total investment volume in Romania amounted to EUR 920.1 mln. in 2021, 60% above the value registered for the previous year. This also marks a return to the long-term average annual volume in Romania of EUR 1.0 bln, indicating the continuous growth of the market. During the second half of the year, investment volumes picked up noticeably, leading to the overall increase in trading activity.

During 2021, forty-three transactions were closed with an average ticket size of EUR 21.4 mln., 30% lower than the 2020 average. With 54% of the total investment volume in thirteen transactions, Bucharest continued to be the top location for investors, with an average ticket size of EUR 40.3 mln. The other thirty deals were signed for properties in regional cities such as Brasov, Timisoara, Sibiu, Craiova, Oradea, Iasi, Cluj, and others.

Both new investors, as well as established ones, chose predominantly office and industrial properties. Almost half of the total investment volume was directed towards office properties (45%), while 30% of investments went towards the industrial sector. The remaining quarter was claimed by the retail sector with a share of 19% while hotel, residential and other segments gathered 6% of the total.

The Investment Market in Romania

The top three largest sources of capital were foreign investors coming from Austria, Czech Republic, and Hungary. Claiming almost three quarters from the annual volume, these three countries divided the capital as follows: 37% from Austrian investors who had an average deal size of EUR 84.7 mln, 18% from the Czechs with an average ticket of EUR 14.0 mln. and 16% from Hungarians in one transaction, the largest of the year, comprising one property.

At the end of 2021, retail prime yields remained stable at 7.00%, unchanged from end-2020. With office and industrial sectors in constant competition amongst the first ranks and emblematic transactions and consistent interest for good products throughout the year, when compared with Q4 2020, prime yields decreased up to 0.50 pps, reaching 6,75% for the office market and 7.25% for the industrial market.