Your achievements in 2020 were remarkable, especially closing the largest transaction in the Romanian office market during a global pandemic. What prompted you to pursue this deal despite the challenges?

This deal was initiated in December 2019, intended to close by March 2020. However, the global travel restrictions made closing impossible. After negotiations, we finalized the deal with NEPI Rockcastle at the end of August 2020. The investment stood out due to prime locations, high occupancy rates, and fitting yields, aligning with our long-term strategy.

Do you anticipate a significant return of people to office spaces?

Conversations with tenants across the region confirm a strong desire to return to offices, evidenced by lease extensions. While remote work might persist for 10-15% of the workforce, there’s likely a shift in office efficiency post-pandemic, allowing more social distancing while maintaining office space needs.

Opening the AFI Mall in Brasov amidst the pandemic showed impressive occupancy. Are you concerned about the rise in e-commerce due to this period?

E-commerce has been growing, but people still seek social experiences. Although online shopping may increase, our malls offer unique experiences and additional benefits that e-commerce cannot replace.

Your recent foray into residential development in Romania is intriguing. Why the shift?

Residential development isn’t new to AFI Europe. We leveraged our experiences from other countries like the Czech Republic. The decision in Romania came after a decade-long exploration of land usage in Bucurestii Noi, eventually settling on residential due to the area’s excellent infrastructure.

You oversee AFI Europe’s business in the Czech Republic as well. How do the markets compare?

The Czech market is smaller and relies heavily on Prague for office spaces, limiting our growth compared to Romania, which has office markets in various cities.

What future plans can we expect from AFI Europe?

We shifted strategy to focus on developing our income-generating portfolio rather than being just developers. We aim to grow organically by developing land banks and acquiring income-generating properties in retail, offices, and residential segments.

The shift to residential for rent is interesting. Why this strategy?

Affordability concerns have increased demand for rental units, mirroring trends in Poland and the Czech Republic. By offering quality amenities and long-term guaranteed rents, we anticipate positive responses from potential occupiers, adapting to changing preferences among young professionals for rental flexibility.

Are there plans for groundbreaking projects?

While early in the planning stage, we’re enthusiastic about contributing to Bucharest’s skyline. However, it’s premature to disclose details at this point. There’s a lot we’re excited about, but it’s too soon to reveal specifics.