How does the real estate sector fit into BCR Romania’s broader portfolio?

Real estate holds a significant portion of our portfolio in Romania and the wider region. Our approach involves meticulous project selection, emphasizing construction quality, sponsor expertise, and a building’s future potential. Currently, our focus lies within the commercial sector: offices, industrial spaces, and retail, although we’re eyeing the residential segment, particularly energy-efficient developments, for the near future.

You mentioned a preference for larger investments. Could you elaborate on what defines a “big ticket” for BCR Romania?

Large-scale investments with substantial capital and reliability are our target. In Romania, prime projects typically range between EUR 50 million to 150 million. However, only a small percentage—around 10-15%—meet our stringent criteria for high quality and attention to detail. Therefore, our selection process is extremely specific, considering multiple criteria.

What specific aspects do you prioritize when assessing projects, especially concerning construction and sponsor quality?

High-value projects often possess specific certifications emphasizing energy efficiency, quality of life within the building, modern design, and sustainability. We prioritize loans for sustainable buildings with high-quality materials and minimal environmental impact. Sponsor quality is vital, indicating a strong market experience, especially in prime projects. Our support extends to both international and local investors, aiming to bolster the local market and back investments focusing on community well-being.

Despite the pandemic-driven boom in the residential sector, BCR Romania hasn’t ventured into this segment. What’s the rationale behind this decision, and how do you envision the future?

We’re monitoring a maturing market where properties exhibit improved building materials, sustainable development, and community-centric amenities. We anticipate a significant shift toward quality living in the next two-three years, with increased purchasing power aligning with a greater appreciation for quality. As income rises, so does the awareness of long-term maintenance costs, encouraging a shift towards sustainable properties. While the market presently leans towards budget projects, we’re waiting for the opportune moment to support flagship developments.

How did the pandemic impact your engagement within the office and retail sectors?

We maintained continuity in our approach, staying close to our clients without altering our market attitude or delaying projects. The impact on our portfolio, mainly based on high-quality projects, was minimal. Few properties were marginally affected, and only a small number of clients accessed governmental assistance. The future sees a gradual recovery in retail, entertainment, and office sectors driven by the innate need for socialization, promising economic growth.

What are BCR’s primary real estate objectives for the next few years?

Enhancing asset quality, attracting high-caliber investors, and supporting prime green projects represent our primary objectives. We aim to aid extensive refurbishments toward energy and maintenance-efficient projects, focusing on providing backing to prominent real estate endeavors.

Do you have a final message about Romania’s real estate market?

Romania brims with opportunities, but investors need physical presence to tap into them. Quality products will always find buyers despite market saturation, leaving room for substantial long-term growth.