Solutions? Ask the banks

Despite the positive title of the Bucharest conference, there was not too much optimism to be found among the speakers and participants, although there were some rays of light hidden away 

After a few welcoming remarks by Eric Royer of Bouygues Immobilier, Tim Wilkinson of DTZ Echinox kicked off the office panel, joined by Florin Popa of Vitalis Consulting, Yetkin Turk of construction firm Summa Romania, Perry Zizzi of Clifford Chance and Helmut Neubauer of Europolis. Wilkinson observed that it was a good time for tenants, with more flexible leases than in the past. Perry Zizzi said that the slowdown in activity offered the chance to do thorough due diligences again, for example checking all permits and land title issues.

The warehouse panel, moderated by Gabriel Sfetcu of Cushman & Wakefield, echoed the office panel, with tenants asking for more lenient terms. Valentin Cudric of NBGI Private Investor claimed that they, as an owner, were open to their clients’ desire for more flexible terms, and that more favourable conditions could be negotiated for both sides. Valeria Costea, representing cold-storage firm Kool Solutions Everest, said that while rents should stay the same, tenants should get better service for the same price. Leslie Warren of Helios Phoenix declared that not all is doom and gloom: “If developers build a good quality product, in the right location, to an appropriate specification, tenant interest exists.”

The difficulties facing the Romanian hotel sector were apparent from the presentation by Mircea Draghici of CB Richard Ellis – Eurisko. One slide showed a 23 pct drop in international visitors spending at least one night compared to the same period the previous year. The panel also included Malin Malineanu of Best Western and Daniel Halswick of UBM Development Romania. On the optimistic side, however, the panel believed that quality of stay – which has hitherto not been a strong point of the Romanian market – will improve, as it has to.

Finally to the residential panel, led by David Flusberg, co-founder and president of Adama Holding. While acknowledging that times are hard, he also pointed out that the market is undergoing a necessary clean-up and that the serious players will survive, a sentiment echoed by Daniel Fuchs of Spiegelfeld International. Christopher Shonn of NAI Property Partners said that developers must up their game, with every lead followed up intently. Alin Alupei of Bank Leumi Romania tried his best to sound hopeful, saying that EUR 2 mln of mortgage loans had been granted so far in 2009, but this was not enough to really encourage the audience. For the market to start working again, banks need to be lending far larger sums than EUR 2 mln. ν