Interview: Mihai Popescu, CEO of Aviva Asigurari de Viata, reveals why the insurer’s operations in Romania, the Czech Republic and Hungary were sold off to MetLife and discusses the local impact of the transaction »page 9
ROMANIA’S PREMIERE BUSINESS WEEKLY
CITY: WOMEN’S DAY
March 5 - 11, 2012 / VOLUME 16, NUMBER 7
A GIRLS’ NIGHT OUT IS A MARCH 8 MUST. BR HAS COMPILED A LIST OF PLACES WHERE YOU CAN CELEBRATE THE OCCASION, FROM MUSIC VENUES TO RESTAURANTS AND TEA HOUSES »PAGE 12
RETAILERS REGROUP Insolvency, brand repositioning, new stores and different franchise formats are some of the shifts on the local FMCG market since the beginning of the year. BR looks at what retailers have in store for 2012 »page 8
NEWS
NEWS
PROPERTY
RESTAURANT REVIEW
FILM REVIEW
R&D role
eMag goes south
Lesson learned
Vecchio
Safe House
The opening of Intel’s local R&D center is proof of Romanians’ technical creativity, says PM Mihai Razvan Ungureanu » page 4
Online retailer eMag is set to start its international expansion with a local platform for Bulgaria and is pondering its next move » page 6
More cautious in today’s post-boom property era, office developers are focusing on well-located, high-quality projects » page 10
Dessert storm: our reviewer is impressed by the pudding menu at an Old City eatery. Was the rest of the meal as sweet? » page 13
Denzel Washington and Ryan Reynolds team up as CIA agents on the run. But is this thriller a safe bet or dangerously bad? » page 14
www.business-review.ro Business Review | March 5 - 11, 2012
BUSINESS AGENDA
NEWS 3
NEWS in brief
March 5 10:00 Bucharest Construction Technical University and SIVECO, along with other universities, organize a conference to mark the launch of the Geodesy-Instruct platform at Zexe Club. By invitation only.
EUR 676.4 million, while expenses hiked 1.4 percent year-on-year to EUR 399.7 million, due to investments in personnel and banking infrastructure. Net operating income lost 8.7 percent year-on-year to EUR 974.3 million.
March 6 11:30 The economic forecast institute of Romania’s Academy and the Pharmaceutical Research and Manufacturers of America launch a study on the pharmaceuticals industry at Novotel Hotel. By invitation only.
INDUSTRY Tenaris buys sucker rods mill from Cameron International Tenaris, a supplier of steel tubes and services for the energy industry, has purchased from Cameron International the plant, equipment and other assets related to Cameron’s sucker rod business in Campina, Romania. The value of the transaction was not made public. The Campina rods mill has a production capacity of 500,000 units per year and a workforce of around 60 people.
11:00 One World Romania organizes a press conference to mark the launch of its documentary film festival at the Czech Center in Bucharest. By invitation only. 16:00 Tuborg and the Ministry of Environment and Forestry organize an event to reward Romania’s greenest city at the Parliament Palace. By invitation only. 19:00 Avon organizes an event to celebrate 15 years on the Romanian market at the Romanian Youth Center. By invitation only. March 12 09:30 Saga Business Community organizes a conference on crisis communication at Hotel Capital Plazza. By invitation only. March 15 09:00 Bliss Romania organizes a conference on Romania’s commercial real estate at Sofa restaurant & bistro cafe. David Hay, CEO of AFI Europe Romania, will attend. By invitation only. March 29 ∫EVENT BR organizes Tax, Law & Lobby, an event that addresses the latest legal and financial provisions that impact the business environment, at Willbrook Platinum. More at http://business-review.ro/brevents
Courtesy of H&M
March 7 10:00 Metro Cash & Carry Romania inaugurates Metro Expo, the largest exhibition fair in South-East Europe for retail and services, at Romexpo Exhibition Center.
PICTURE of the week Romania’s H&M stores to get Marni fashion moment on March 8 Three Romanian H&M stores in Baneasa Shopping City, AFI Palace Cotroceni and Maritimo Shopping Center Constanta have been selected among 260 outlets worldwide to stock the newest limited edition collection produced by H&M in collaboration with the Italian brand Marni. The collection is composed of items selected from the extensive repertoire of Marni’s creative director Consuelo Castiglioni. Actress Imogen Poots is featured in the advert for the collection, which was directed by Sophia Coppola.
ENERGY
in Romania in recent years, including EUR 75 million last year, according to Stab.
E&Y: Romania among top ten destinations for wind investments
MACRO
Romania’s wind industry is up four positions to tenth place in the latest Country Attractiveness Indices report by consultancy firm Ernst & Young. In the solar power ranking, the country moved up two positions to 23rd. Overall, it ranks 13th for renewable potential, including all clean sources, unchanged from the previous report. E&Y moved Romania into its top ten, alongside Poland and Ireland, after wind energy company Monsson Group began construction of its EUR 245 million 150 MW wind park.
The Romanian government has approved the setting up of an economic-financial inspection department, within the Ministry of Public Finance, to track the use of public funds, mainly in state-owned enterprises (SOEs). PM Mihai Razvan Ungureanu announced about two weeks ago a clampdown on fiscal evasion in order to increase revenue.
GDF Suez to invest EUR 100 mln in 2012 Gas supplier GDF Suez will make investments of over EUR 100 million in Romania’s wind and gas sectors, according to Eric Stab, executive president of GDF Suez in Romania, quoted by Bloomberg. The gas company has invested an annual average of EUR 60 to 100 million
State sets up inspection body to track public funds in SOEs
MONEY BCR net profit plummets 85 percent year-on-year The net profit of BCR Group, majorityowned by Austrian Erste Group, dropped by 84.8 percent year-on-year to EUR 16.7 million in 2011, due to weak economic recovery and increased bad loans in the corporate segment. BCR’s operating profit decreased by 14.6 percent to
PHARMA Generics producers call for new claw-back tax Members of the Romanian Association of Generic Pharmaceuticals Producers (APMGR) will take legal and administrative action against the claw-back tax used to finance some healthcare expenses. Generics producers are currently considering the withdrawal of certain products, which would result in the loss of 1,000 jobs. Significant investments have also been put on hold. The APMGR argues that the claw-back is unjust and illegal because it uses the shelf price as the tax basis, which includes distributors’ and pharmacies’ mark-up and VAT. In addition, the tax is calculated using erroneous data from the CNAS, says the organization.
POLITICS Teodor Melescanu appointed head of Foreign Intelligence Parliament has confirmed Teodor Melescanu as director of the Foreign Intelligence Service (SIE), with 238 votes in favor and just one against. Of a total of 463 MPs, only 242 were at the meeting. The appointment of the former minister of external affairs and minister of defense comes after Mihai Razvan Ungureanu, erstwhile head of the SIE, was named prime minister of Romania.
TELECOM GTS Telecom posts EUR 23 mln revenues in 2011 Alternative telecom provider GTS Telecom, part of GTS Central Europe, posted revenues of EUR 23.5 million in Romania, a similar level to the financial indicators reported in 2010. EBITDA amounted to EUR 4.6 million. After launching Virtual Servers in 2011, GTS will continue to expand its datacenter-managed service range, launch new voice packages and leverage new access technologies such as ethernet.
www.business-review.ro Business Review | March 5 - 11, 2012
4 NEWS LEGISLATION
Romanian Parliament adopts lustration law
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wenty-two years after the anticommunist revolution in Romania, the Chamber of Deputies has finally adopted a lustration law, which prevents former communist apparatchiks from seeking public office for five years. The law was passed with 167 votes in favor and 4 abstentions. The opposition did not attend the vote. The law covers officials previously in the employ of the central, regional or district administration of the communist Romanian Labor Party, members of the central committee of the Romanian Communist Party, state council, ministers and directors of publishing houses. Communist prosecutors were also included in the legislation, at the request of the Hungarian Minority Party. This category was initially rejected by a legal commission, but a former political prisoner, Constantin Soare, who was present at the vote, kneeled in front of the door outraged that the former prosecutors who beat him in prison were set to fall outside the remit. The law does not include candidates who ran for the presidency, members of the Young Communists’ Union, or diplomats.
can speak their mind and popular consensus decides all things. I find such a law today, 22 years after the revolution, absolutely useless.” Victor Ponta, president of the Social Democrat Party: “What emerged was an aberrant law that does not solve anything and proves that the Democrat Liberal Party does not have any strategic thinking left.”
Too little, too late? Opponents of the lustration law argue its impact will be minimal
Romanian politicians react to the law
Ion Iliescu, former president of Romania, honorary president of the Social Democrat Party: “It would have been somewhat rational to discuss such a law in the years immediately after the fall of the dictatorship, after 1989, in the 1990s. So I find such a law generally aberrant and useless in a democratic environment of open politics, where everyone
Sever Voinescu, spokesman for the Democrat Liberal Party: “Although it came late and is not perfect, the fact that this lustration law now exists in Romania is a sign of normality and that, at least symbolically, after all these years, communism has really been defeated.”
Crin Antonescu, president of the National Liberal Party: “I am saying this with sadness: it is a goal Romanian society has missed. Lustration, which is not only just but also very necessary for a society such as the Romanian one, was missed because of the insufficient force of the political alternatives in Romania at the beginning of the 1990s, because of the vast system of complicities, because the strong powers outside Romania, interested in Romania’s democratic evolution, did not help us.” Roberta Anastase, president of the Chamber of Deputies: “We are talking about moral reparation, about a moment that cannot be quantified given the present time. It is a gesture pregnant with certain symbols. It is a law that Romanian society has been waiting for for 22 years.” Otilia Haraga
IT&C
R&D center in Bucharest takes Intel’s headcount to 350
Courtesy of Intel
Doug Fisher, GM of Intel’s system software division, and Monica Ene-Pietrosanu, Intel Romania country manager, at the inauguration ceremony
I
ntel has officially inaugurated its R&D center in Romania, initially announced at the end of 2010, after “a multi-million USD investment,” with ambitions to develop it into one of the most important R&D software centers in Europe.
The inauguration was attended by Mihai Razvan Ungureanu, Romania’s prime minister; Razvan Mustea-Serban, the minister of communication; Doug Fisher, vice-president of Software and Services Group and GM of Intel’s system software division, as well as Monica
Ene-Pietrosanu, Intel Romania country manager. “Romania is a regional IT&C hub and the opening of this center is an acknowledgement of Romanians’ technical creativity,” said Ungureanu. “In 2010, the contribution of the IT sector represented 5 percent of Romania’s GDP. There are 116,000 employees in IT, a young but economically mature generation.” The American corporation had just 10 employees in Romania in 2010 when the opening of the center was announced. However, now that the center is completely functional, the number has risen 350. The 3,700-sqm site, which includes a server laboratory, currently employs more than 75 people, but can accommodate up to 180. At the moment, all the engineers and managers at the center are Romanian. “We have a good mix between so-called research college graduates and senior engineers. The average age of the employees is 25-27 years old. At the moment, the R&D division for mobile platforms such as tablets and phones has a very large team that keeps growing,” said Ene-Pietrosanu. “The Intel R&D center accounts for 100 percent of Intel’s investment in Romania. There was no state aid for this center,” Ene-Pietrosanu told BR. “Our main investments are in people and the development of the ecosystem. For example, we will open an Intel Innovation Lab in
the Politehnica University. Probably out of all those who we are working with, 10 percent will work for Intel, while the rest will gain experience and remain on the market.” The R&D center now includes three divisions: an open source technology center, platform technology and analysis center and developer platform division. It will collaborate with other Intel units in Europe. At the moment, the Intel Labs Europe network includes 26 locations in 12 countries, and 1,500 employees. “The opening of the Intel center in Romania is a very strong signal that Romania is ready to take the step from software plant to R&D center,” said Mustea. “We can reverse the brain-drain process. The message is that well-paid jobs are coming to Romania.” “We have very well-trained graduates, who speak foreign languages, a competitive IT&C environment and tradition, since tens of thousands of Romanians work in IT companies all over the world. The rate of unemployment in this field is nearly nonexistent, because most graduates are absorbed by the market,” added Mustea. Apart from the R&D center, Intel has acquired two companies on the Romanian market, Wind River and Telmap, as well as having a local sales and marketing office. ∫ Otilia Haraga
www.business-review.ro Business Review | March 5 - 11, 2012
6 NEWS/INTERVIEW FINANCING
‘Real change will come’
Romania raises USD 750 mln from ten-year bond issuance
In a conversation with BR in February, at the end of his four-year mandate, outgoing French ambassador Henri Paul drew a farewell postcard image of Romania and its people, just a couple of days after the change of government.
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Photo: Mihai Constantineanu
∫ ANCA IONITA
Why do you think there is this gap between public opinion and the Romanian political class? Because the media are not representative of public opinion, which, I think, finds different channels of communication such as blogs, for example. How many in-
How long will it take for Romanians to find a viable and powerful voice, to create a long-needed public forum? I think it will come very soon. I am very confident about that. The 19th-century Romania had a rather strong voice of public opinion. It will have one again. You arrived here in 2007. What changes have you witnessed during your ambassadorial mandate? There were changes in the city of Bucharest itself; public services have improved. But I have seen, also, an increase in poverty. People are less optimistic than in 2007, which is a general, global trend. However, the artistic environment is thriving, with many interesting things to be expected from the young generation. The emigration trend will continue, increasing, probably, over the coming years. However, the level of business activity has been maintained, with new projects being developed and new investors coming in. There is still room for growth, which is not uniformly the case for the rest of Europe, and a lot of potential to be fulfilled.
anca.ionita@business-review.ro
The ministry has raised USD 750 million ing to raise EUR 7 billion from external markets. This year, Romania plans to raise EUR 2.5 billion by selling bonds on external markets. The Finance Ministry aims to improve financing on the domestic market and cut costs, by creating an adequate yield curve for bonds maturing in between 6 months and 15 years. In the local market, bonds maturing at 6 months are yielding at 5.22 percent. The ministry has issued 15-year bonds, in a move intended to ease the pressure on financing the existing debt, by securing short-term financing. ∫ Ovidiu Posirca
CHEMICALS
American Univar opens local chemical distribution branch
C
hemical distributor Univar will start operations in Romania after announcing last week that its local legal entity – Univar South-East Europe – is fully operational. Its objective for this year is to establish itself on the Romanian general chemicals market, company representatives told BR. “We will be concentrating on making our new office fully functional, with the setting up of our IT and infrastructure as well as building our coatings, food, personal care, pharmaceutical and rubber business lines,” they added. Univar considers Romania a promising market, especially in the coatings market where only 65 percent of the customers are served by local producers. “Romania is a country with enormous growth opportunities for our business. Industry and agriculture contribute nearly half the country’s GDP, which plays very well into Univar’s portfolio,” said Balazs Kiss, Univar’s country manager for Romania, Czech Republic, Slovakia and Hungary. “Also, the domestic chemicals market is currently quite fragmented, so customers will benefit from Univar’s presence (…).”
Courtesy of Univar
How integrated, do you think, is Romania in the EU at present? To become an EU member, Romania made a lot of effort to comply with the required criteria before integration. After joining the EU, the government reduced its efforts and slowed down the process of integration. This is why it had to constantly be reminded to keep its engagements, particularly fighting corruption and reforming the legal system. I think Romanian public opinion wants these efforts to be made in order to deal with these issues. I am glad that the new government has announced fighting corruption as one of its priorities. But, at the same time, Romania, like all EU countries, has to find the right balance between EU integration and its nationalistic future and ideas. You are looking at a Europe, which has been making, over recent years, real progress in the integration process.
dependent TV channels do you have? Not too many; a few.
he Ministry of Finance issued tenyear bonds last week on the US market, raising USD 750 million at a yield of 6.45 percent. Investors’ interest was significant as the offer was oversubscribed fourfold at USD 3.2 billion. Banking giants Citigroup, Deutsche Bank and HSBC Holdings handled the deal. At the end of January, Romania tapped the US market after 16 years and raised USD 1.5 billion at a yield of 6.87 percent, although bidding for the offer amounted to USD 7 billion. “We issued new bonds because there is still demand in the market for Romanian bonds, and investors wanted exposure in Romania, so we took advantage of this opportunity to gain some financing at a lower cost,” said Bogdan Dragoi, minister of Public Finance. Romania’s latest bond offer attracted investors from the US, UK, Europe and Asia, according to data from the Finance Ministry. Fund managers represented 61 percent of investors, followed by hedge funds on 16 percent. Insurers, pension funds and central banks bought 15 percent of the bonds. Retail banks and investors purchased 5 percent while other investors acquired the remaining 3 percent. Dragoi said US investors’ share had dropped by 6 percent against the previous bond offer while the UK’s take-up increased by 5 percent. In addition, the share of Asian investors doubled to 5 percent. The minister said this was a clear sign that the markets had gained confidence in Romania. In 2010 the government approved a bond issuance program for 2011-2013, aim-
Univar has been expanding in CEE Univar has been expanding its network throughout Central and Eastern Europe in recent years. A global distributor of industrial and specialty chemicals, it represents over 2,500 chemical producers and provides its 80,000-strong customer base with a full portfolio of products. The company operates a network of 300 distribution facilities throughout North America, Europe, the Asia-Pacific region and Latin America, with additional sales offices located in Eastern Europe, the Middle East and Africa. In 2010, Univar reported sales of USD 7.9 billion. ∫ Simona Bazavan
www.business-review.ro Business Review | March 5 - 11, 2012
NEWS 7
ONLINE
Online retailer eMag kicks off international expansion
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ENTREPRENEURSHIP
First local nonprofit coffee shop opens
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he Young Professionals Club (YPC), an NGO specialized in personal and professional development, launched last week YPC Cafe, the first non-profit coffee shop in Romania, which will support the growing non-profit sector in the country. The location will host workshops, training sessions and personal development conferences, as well as exhibitions, book launches and shows by young artists. “We want YPC Cafe to become an engine that generates good projects that help build a better society,” said Dragos Barbalata, president of the Young Professionals Club. “One of the main objectives of the coffee shop is to provide financing for projects developed by the club and its partners.” YPC was founded in 2008 and has run projects for vulnerable groups (children and seniors) and been involved in environmental protection activities. However, most of the projects were done with almost no budget. NGO representatives say the coffee shop will help foster social entrepreneurship in Romania. The club’s president said the new location can host fundraising events for certain causes and will also act as a meeting spot for events held by other NGOs. The coffee shop is based on a sustainable economic model as the profit will fund YPC and other NGOs’ projects. The location has already hosted a first meeting between YPC and NGOs that are interested in collaboration. Around 16 organizations responded, mainly student associations whose representatives were told about the concept and how the coffee shop can serve the interests of non-profit organizations. Scheduled events for March include a corporate matching event, a networking opportunity for members of the business community and a night dedicated to young professionals’ success stories. The end of the month will bring a week on the theme of personal development. ∫ Ovidiu Posirca
Courtesy of eMag
nline retailer eMag is aiming for a turnover of up to EUR 180 million in 2012. The company’s priorities this year are the accelerated expansion of its Marketplace platform and the start of expansion on other markets, said officials. Last year, eMag posted a turnover of EUR 145 million, up 42 percent year-on-year, maintaining its position as the largest online retailer in South-Eastern Europe. However, the figure is slightly below what the company had initially anticipated, EUR 150 million. Last year, eMag launched Marketplace, the first online platform in Romania to host various retailers. The firm received 5-10 percent of the sales of these retailers, according to businessman Iulian Stanciu, who controls the company. “Every month we will launch a new category, maybe even two a month,” said Stanciu. “We are even discussing selling art
Iulian Stanciu, major shareholder in eMAG items with Artmark. We also plan to expand next year with cars, as the car market is a very interesting and large market.” eMag will keep its specialization on the market of online IT&C retail. “If at some point we no longer depend on IT so much, we can give it to someone even more spe-
cialized than us,” said Stanciu. “This means that we let them operate the business, be in charge of logistics, product documentation, prices, delivering products and post-sale services, and we will only take care of the customer relations via the website. This would be subject to negotiation and we could be even better off than now. Who knows, in several years we may leave Altex to operate the electro-IT division.” At the same time, the company also will start its international expansion. The first country on the list is Bulgaria, but others are already under consideration. “From a logistic viewpoint, Hungary is also an option because it is close to Romania. We would also like to go to the Republic of Moldova but half the market is black. Turkey and Ukraine are also interesting markets,” said Stanciu. The retailer has 500 employees, 250 at the headquarters and the rest in show-
rooms and logistics. eMag, Network One Distribution (formerly Asesoft Distribution) and Flanco are part of the group of companies controlled by businessman Iulian Stanciu. Together, these three firms have a combined turnover of EUR 500 million. At the beginning of the year, Network One Distribution, controlled by Stanciu with Sebastian Ghita, purchased another 30 percent stake in eMag. The shareholding structure of Dante International (the firm that runs eMag) is as follows: 80.67 percent is owned by Network One Distribution, in which Stanciu and Ghita have an equal number of shares, 3 percent of shares are held by Asesoft Web (also controlled in equal measure by Stanciu and Ghita), while 16.33 percent is in the hands of Radu Apostolescu, vice-president and development director at the company. ∫ Otilia Haraga
www.business-review.ro Business Review | March 5 - 11, 2012
8 FOCUS
Retail detail: FMCG sellers set out expansion plans Dinu Patriciu’s Mic.ro business officially became insolvent, Profi repositioned its stores, Metro Cash & Carry launched a franchise for independent retailers and other players are forming ambitious plans for expansion – these are just some of the shifts on the local FMCG retail market since the beginning of the year. BR takes at look at what has changed and what more the big firms have in store. ∫ SIMONA BAZAVAN While 2011 was a year of consolidation for the local FMCG retail market with investments in expansion keeping a similar pace to the previous year, so far 2012 seems to herald more ambitious plans. Mega Image, Lidl, Kaufland and Profi all got off to a dynamic start, each of them opening new units and hinting at more to come. Other players like Carrefour Romania and most recently Metro Cash & Carry are expanding their local footprint through franchising programs. One thing is clear however – the difference will be made by those retailers with the financial capacity to invest in expanding, shaping the market and thus preparing for the growth to come, say commentators. But is there room for more supermarkets and hypermarkets in Romania given the consumption decrease in the past couple of years and less than promising outlook for 2012? Compared to other European countries Romania continues to have a low modern retail stock density at only 45 percent of the EU average, and the figure is still considerably lower than that in countries like the Czech Republic, Poland and Hungary. As for consumption, although the record level reported by the local FMCG retail market in 2008 of EUR 21 billion will not be repeated any time soon, retailers are confident that they will see growth this year. Pawel Musial, general manager of Profi Rom Food, estimates that the market will grow to EUR 17.1 billion in 2012, up EUR 800 million against 2011, and that the upward trend will continue to an estimated EUR 19.2 billion for 2015. As in the past couple of years, supermarkets and discounters are proving to be the main choice of formats for expansion, especially in towns with fewer than 100,000 inhabitants – the new battleground for FMCG retailers regardless of the format.
Making an early start Mega Image has opened nine new stores since the beginning of the year and another eight will be added this March, while in 2011 it increased its network by 33 new outlets. Should the retailer keep the same expansion pace throughout 2012, it could open more than 70 new units this year. Lidl is another player with big ambitions for 2012. The discounter plans to reach 200 stores by yearend, investing up to EUR 70 million. Lidl opened 107 branches last June after having invested in rebranding the local Plus Discount supermarkets as Lidl stores. The change took place more than a year after it bought the local low-cost chain Plus from German owner Tengelmann in February 2010. Throughout 2011, 22 new
Modern retail stock density benchmark (sqm/1,000 population) Spain Italy Czech Republic Poland Hungary Romania Bulgaria
290 265 228 211 200 103 83
Source: Profi
Trolley dash: FMCG retailers are expanding fast despite the drop in consumption Lidl stores were built. The discounter is part of German Lidl & Schwartz Group, which also runs the Kaufland discount hypermarkets. The player now operates the largest hypermarket chain in Romania having maintained a steady expansion pace over the last three years. Four new Kaufland stores have been opened so far in 2012 whereas last year 13 units were added to the network. The first two months of 2012 were busy for Profi too. The retailer repositioned its 107 outlets on the local market from discounters to proximity stores and announced plans to open up to 30 new units 2012.Last month the company bought Al Comsib, a network of stores in Sibiu, thus adding six more outlets to its network. One retailer that has plans to open more units this year than it did last year is Billa. The German firm hopes to add at least ten more stores to its local network this year. At the end of 2011 the company was operating 61 supermarkets countrywide, six
Retailer
No. of stores*
of which were opened last year. Billa is part of German Rewe Group which also runs locally the Penny and Penny XXL discount stores. Carrefour too focused on adding more supermarkets to its network last year, opening 13 new outlets. Most of this year’s expansion will continue to be supermarkets, said the company. Carrefour is also expected to open at least a hypermarket this year. Another French retailer present in Romania, Cora, has announced that it will open three hypermarkets this year in Slobozia, Bacau and Bucharest. Meanwhile, rival Auchan will open a hypermarket in Iasi, while Real has signed with AFI Europe to open a hypermarket in the future AFI Palace B. Noi shopping mall, although the delivery date has not been announced. Metro Cash & Carry, a company that can be considered the pioneer of modern retail in Romania after opening its first cash & car-
Estimated openings for 2012
Auchan 9 WND Billa 61 10 Carrefour 75** WND Cora 8 3 Kaufland 71 WND Lidl 129 60 - 70 Mega Image 105 WND Metro Cash & Carry 32 WND Profi 107 25 - 30 *as of beginning of 2012 **25 hypermarkets, 45 supermarkets, 5 proximity stores
ry store back in 1996, launched last week a franchise for proximity stores under the La Doi Pasi brand (Two Step Away). Metro representatives announced that 200 independent retailers have joined the program so far and 80 such stores are already functional. Retailers receive training and consultancy services from Metro Cash & Carry and are able to maintain their financial and operational independence. Earlier this year the company launched the first online store operated by a local cash & carry retailer under the Metro Office Direct name (www.metro.ro/direct). The store targets companies and will sell a total of about 4,500 office stationery products and various electronic appliances. Overall, Metro Cash & Carry operates 32 stores in 24 Romanian cities. Not all players kicked off 2012 in such aggressive mode. Dinu Patriciu’s retail investments faced a bumpy start to the year. Mic.ro Retail, the company that owns the Mic.ro proximity stores, filed for insolvency last month. Its stores had been facing difficulties since last year due to outstanding debts to suppliers and banks. The announcement came only two weeks after Minimax Discount, a discount chain bought by the businessman in 2010, also filed for insolvency. Mic.ro stores were launched in October 2010 to much fanfare and big ambitions for the future – 1,000 fixed shops and 2,000 mobile units by the end of 2011. Things, however, did not move as swiftly as the businessman had initially hoped, and the chain collapsed in a stinging failure. In September 2011 there were about 830 Mic.ro stores and 58 Macro (former Minimax stores) and miniMax outlets, many of which had empty shelves or were simply closed after the rent was not paid. Ironically enough, when he launched the first Mic.ro store, Patriciu declared boldly, “If I have a wish, it is that the commerce imported piecemeal from the West should die.” In the end, retail proved to be a harder business than the businessman had anticipated.
simona.bazavan@business-review.ro
www.business-review.ro Business Review | March 5 - 11, 2012
INTERVIEW 9
Growth policy behind insurer sell-off Mihai Popescu, CEO of Aviva Asigurari de Viata, tells Business Review why Aviva’s operations in Romania, the Czech Republic and Hungary were sold off to the American group MetLife and the effects this will have locally on both customers and staff. ∫ ANDA SEBESI
As MetLife is already present in Romania through Alico, will it lead to consolidation? It is obvious that the main goal of this transaction is growth. It opens the path to creating, by consolidation, a better performing financial institution that can change the make-up of the life insurance industry and administration of pension funds. What impact will this transaction have on Aviva’s products and services on the local market? Aviva Asigurari de Viata and Aviva Pensii customers will have the same terms and conditions as they initially signed up for, as well as the same products and representatives. So nothing will change from this perspective for the company’s existing customers. We will continue to operate under the name of Aviva until the completion of the transaction.
CV Mihai Popescu May 2010 CEO of Aviva Asigurari de Viata 2008-2010 Chief marketing officer with AIG Life Romania 2003-2008 Manager, financial institutions & group management division at AIG Life Romania 2000-2003 Relationship manager at Citibank Romania 1997-2000 Brand manager at P&G Balkans 1995-1997 Off-shore business integration project leader at P&G Balkans 1995 Graduates from the Bucharest Technical University with a MSc. degree in Engineering.
To what extent will this deal influence Aviva’s strategy in Romania this year? Until the completion of the transaction, Aviva Asigurari de Viata and Aviva Pensii will operate in the same manner, with no changes. We will continue to focus this year on the efficiency of our business, a process that started in 2010 and which has significant implications for the operational and sales areas. We have made and continue to make important investments in professionalizing the sales force and operational infrastructure and the results are already visible at the level of our performances. Our company’s activity hasn’t changed and our priorities will continue to be offering high-quality services and products to our customers that meet their needs. How do you see the local life insurance market going this year? In Romania, life insurance has a market share of 19.9 percent of the total insurance market, significantly lower than in nearby countries such as the Czech Republic (46 percent), Hungary (53.5 percent) and Poland (58 percent). These differences are also evident in the life insurance penetration rate, calculated as the volume of gross written premiums against the gross domestic product (GDP). In Romania 0.3 percent of the monthly average gross salary is allocated to life insurance, while in other countries in the region the figure is 2 percent. So, while a typical Pole devotes up to EUR 17.2, a Romanian spends EUR 1.5. At present, Romania is in the process of convergence regarding the consumption of all products, including life insurance. Although there is a significant gap between the share life insurance accounts for out of the total insurance market locally and the equivalent percentages in other countries in the region, we will help close it in the years to come.The life insurance market grew by about 5 percent in 2011, according to the latest public data. Such an increase posted in a year of crisis shows that the industry is moving in the right direction. Personally I think that in 2012 too we will see an increase in the life insurance segment.
andasebesi@business-review.ro
Photo: Mihai Constantineanu
What prompted the sale of Aviva’s operations in Romania, the Czech Republic and Hungary to the American group MetLife? It started as a result of a strategic review from November 2010, when Aviva announced that it would concentrate its efforts on those markets where it had a strong presence. The goal was to consolidate the company’s position by focusing its capital and efforts on the markets where it believed it could obtain USD 100 million IFRS profit and a 12 percent return on capital employed or which have the potential to deliver USD 1 billion of franchise value. Seven markets with such potential were identified inside Aviva Europe, and it was decided that the Czech, Romanian and Hungarian markets do not yet fulfill these criteria. Hence, other possibilities for the operations on these markets were analyzed from the perspective of both customers and investors, choosing the best of them.
And what impact do you think the deal will have on Aviva’s employees? The transaction will go through a process of authorization by the authorities in each country and is expected to be completed by the end of 2012. Aviva Asigurari de Viata has 110 employees and Aviva Pensii, 30. After the authorization is secured, MetLife will work with the local management on an integration plan in order to manage the transition.
www.business-review.ro Business Review | March 5 - 11, 2012
10 PROPERTY
Office developers learn from past chaos Having witnessed the costly mistakes made previously by reckless operators, office developers that manage to deliver well-located and high-quality projects in the coming two years will ride the next profitable investment wave, pundits say. ∫ ANDREEA CEASAR In 2008 office developers were confronted, for the first time following the boom, with growing vacancy rates, which rose from 4 or 5 percent at the end of that pivotal year to the painful value of 24 percent, according to a 2010 report from real estate consulting company CBRE Romania. This brought a change in the dynamic between tenants and developers, as the former were left with weaker businesses, a smaller number of employees and a poor cashflow. Tenants that survived started to put pressure on rents and developers began to be more open-minded and look for solutions to compensate for the lack of a subway station or the high costs of administration.
“If we analyze the last 18 months, we can see that from the beginning of 2010 occupants began choosing to relocate rather than renegotiate expiring contracts. Due to substantially reduced rents, tenants opted to move to better areas with better accessibility. Last year relocations and expansions represented 80 percent of the total transacted surface area of 240,000 sqm, while renegotiations made up the rest,” Horatiu Florescu, president and CEO of The Advisers/Knight Frank, told BR. Major clients relocated despite the significant costs this entailed. No rent reduction could dissuade them from leaving for superior office spaces, warning developers that their investments were perhaps not as sound as they had previously thought. According to Florescu, the market – especially tenants – has self-educated, and players have understood that the rent is not the only criterion when it comes to selecting office space. Other factors at play today include: the layout of the floor and its flexibility for each occupier’s needs, the costs of administration, natural light, parking spaces, building accessibility and proximity to the subway. The developer’s experience and flexibility are also crucial. Developers that can fulfill these needs will enjoy success. Unfortunately, many developers that built in Pipera or somewhere similar paid enormous sums for the land and construction, without taking into consideration the importance of a subway station or administration expenses. And this could cost them. But real estate consultants say that the power balance could swing back the other way, as the existing relationship between demand and the delivery of new space is tipping in favor of office developers. Last year more than 96,000 sqm (but less than 120,000 sqm) of rentable office
space was delivered in Bucharest. That is the smallest amount in the last six years, and a drop of more than 65-70 percent in comparison with the year before. Plaza Development, Willbrook Real Estate and Chayton Capital delivered more than 90 percent of all new leasable office space in 2011 in Pipera, Baneasa and Piata Victoriei (using the total of 96,000 sqm). The risk of investing hundreds of millions of euro is high even for solid investors. The answer to the market’s harsh variables seems to be small office buildings with leasable surfaces of approximately 3,000 sqm, such as the Romana, Barbu Vacarescu, Frumoasa and Herastrau offices delivered last year in Bucharest. These types of spaces are easier to rent out as they are perfect for small firms that want to have their offices in the center of the city and also
f o r undecided companies that are considering coming to Romania, but in an initially limited capacity. “Taking into consideration the low delivery rate of new office space in 2011 – 120,000 sqm – and the estimated office space to be delivered in 2012 – approximately 70,000 sqm – I believe tenants will develop an increased interest in five-year contracts,” said Florescu. If the announced projects do not start in 2013 and 2014 there will be a lack of good projects, despite demand. “In the last 24 months the vacancy rates in central and semi-central Bucharest have clearly dropped. At the moment, I estimated that in Bucharest we have a vacancy rate of under 15 percent, differing from one area to another,” added The Advisers/Knight Frank representative. The Bucharest City Report put together by Jones Lang LaSalle found that prime headline rents stayed around EUR 19 per sqm per month throughout the whole year. In fact, all real-estate consultants were a little hasty in announcing the pressure on prices.
Crowded and cheaper According to Global Occupancy Cost Offices 2012, a study by DTZ Echinox, Bucharest is the fourth cheapest city in Europe for occupancy costs per workstation, at EUR 2,932, with an average annual growth of three percent projected through to 2016. Budapest offers the best deal, at EUR 2,627. A factor here is employers’ inclination to pack their workers into offices, with a local employee being allotted just 8.9 sqm of net surface area, while in Ukraine and Poland an office worker gets 9.3 sqm, in Hungary 10.2 sqm, in the Czech Republic 12.5 sqm, while the typical German staff member en-
www.business-review.ro Business Review | March 5 - 11, 2012
joys double, at 17.2 sqm. “There is a tendency towards using office space efficiently, which we have also noticed in Romania, especially in Bucharest. The rent per sqm will become less relevant and more attention will be given to details such as the occupancy rate and costs of administrating the building,” said Madalina Cojocaru, head of the office department at DTZ Echinox.
Fast-moving niche Meanwhile one niche market – property and facility management – has been growing, as investors have finally realized the importance of administration costs and the need to offer quality services, say providers. The decline of the real estate market and the low cash flow has generated greater interest among the main real estate consultants in this adjacent market. This is how the market has grown in value, but also in terms of competitiveness. Players on the market of outsourced facility management services say that the market grew in 2011 to EUR 120 million. Jones Lang LaSalle announced at the end of 2010 its first client in the field – Polona 68 Business Center, developed by EEC Invest. The number of its clients increased in 2011 to include Swan Office & Technology Park and retail park Colosseum. Meanwhile, the local subsidiary of BNP Paribas Real Estate entered on the property management scene last year by taking over the administration of the America House office building and Promenada Mall
in Targu Mures. It was a similar scene at Colliers International, which also launched operations in this field with its first client the Allianz-Tiriac building in Brasov. And 2012 started with the announcement that CBRE Romania was finally showing interest in this market. As well as companies whose expertise lies in adjacent areas moving into the field, there are also specialized operators. One of the most active companies whose main activity is field property and facility management is Building Support Services (BSS), with a market share of 10 percent. “We administrate over 200 locations all over the country: office, logistic, commercial spaces and even residential projects, totaling 2.4 million sqm. In 2011 our business turnover increased by 80 percent to EUR 9.2 million,” said Lucian Anghel, managing partner of the company. According to him, property and facility management is a relatively new activity, so there are important steps to be taken to deal with the lack of specialized personnel and establish standards and performance indicators for these types of services. “The facility management market is rapidly growing, as the economic crisis has taught us that these services help to considerably reduce administration costs. [...] Last year the facility management market reached EUR 160-180 million. This year we expect that it will grow due to multinationals that have understood the advantages of outsourcing services, but also due to local companies that are keen to optimize costs,” said Gabriel Davidescu, general director of UTI Facility Management, which has over ten buildings with a surface area of 140,000 sqm in its administration portfolio. The developer Global Vision
PROPERTY 11 started to offer such services in 2004 and now, according to managing director Sorin Preda, has 650,000 sqm of office space in administration, in Bucharest, Timisoara and elsewhere. In 2012 and 2013 he is interested in developing five other offices through the country. So the message is clear: there is potential, and it is growing.
Waiting for the right moment Many contracts should end in one or two years, maximum, including some involving major multinational companies, according to developers such as AFI Europe Romania. “These tenants are our target market,” CEO David Hay told Business Review in a previous interview. The company’s 70,000-sqm project is positioned near the subway, close to its own shopping mall, and allows tenants to expand into the next four office buildings (which will be built in three years’ time). Last year IT&C firms were the main clients for rentable office space (at 21 percent), followed by companies providing medical services (17 percent), financial services (16 percent), and production and energy firms (11 percent), according to CBRE’s report on the fourth quarter of 2011. All these fields are continuously growing, so in five years’ time the occupiers will need to extend their offices, it argued. For this year the most advanced project is the 11,000-sqm first building of AFI Business Park being developed adjacent to AFI Palace Cotroceni Mall. Other
projects underway include the 37-floor Sky Tower from Raiffeisen ( 37,000 sqm in GLA), the first phase of Hermes Business Campus (18,000 sqm GLA), and Expozitiei Project, (15,000 sqm GLA). Additionally, smaller buildings such as Aviatorilor and Monolit offices are currently being developed in prime locations. After these end, some lean years will follow, unless works at some of the announced projects start at least by the end of this year. Major investor Immofinanz has big plans for 2012, such as building some new office buildings in Iride Business Park and moving its current tenants to these new facilities, while renovating the rest. “Romanian projects in the pipeline include a plot of land adjoining our Iride Business Park in Bucharest. At present we are evaluating the potential of this site for a new development project,” communication manager Sandra Bauer exclusively told BR. Interprime Properties, part of Inter Ikea, has also announced its intention to invest in an office tower near the Basarab area, and designers say that the blueprint is nearly ready. And other projects should join it. “This summer, construction works should start on Ana Tower, a 30,000-sqm development by GTC and Ana Group, which is a 27-storey office building. There are also great expectations from Straulesti Property Development, a 31-storey office building over 110 meters high,” announced Dragos Marcu, CEO of Popp and Asociatii, a structural design company active in civil engineering, highlighting two projects that might change the aspect and quality of new office space if they learn from past errors.
andreea.ceasar@business-review.ro
www.business-review.ro Business Review | March 5 - 11, 2012
12 CITY GOING OUT
CULTURAL AGENDA CONCERTS Alessandro Safina March 7, Insieme a te 19.30, Palace Hall Together with You (Insieme a te) is a show for Woman’s Day by one of the most popular tenors in the world, performing alongside the Ion Dacian National Lyric Orchestra. Safina has enjoyed a glittering international opera career, performing on the top stages. In early 2000 his popularity soared when he combined classical with pop music to create a new style, which he labeled “Rock Opera”. Tickets are available from the Eventim network in partnership with www.vreaubilet.ro at RON 50, 100 and 150.
Feeling right on ladies’ night A girls’ night out is part of the fun of March 8, International Women’s Day. But whether you prefer to spend the evening with your friends or your partner, in an intimate spot like a quiet tea room or out on the town clubbing and getting in the mood with live music, we have recommendations to help you enjoy the occasion.
the ideal place for a girls’ night out. Fashion items, both clothes and accessories, plus great food create the ambience of a fashion capital. For gentlemen it is a good place to impress a lady. Reservations 0729 997 405.
Plunklock March 10 18.30, Atelierul de Productie
Forever in love with Paris, Nicolai Tan has created a fresh Parisian look for his Bucharest restaurant La Cantine du Nicolai. He now invites diners to enjoy his special menu for March 8, which consists of several delicious French dishes. Entitled Degustation, the menu starts with a Coupe de Champagne, and includes homemade duck foie gras and onion soup. The main dish is a selection between ravioli stuffed with duck or mushrooms and an ovenbaked filet of sea bass. The desert specialities of crème brulee or the delicate cake of raspberry cannot miss of these culinary delights. Reservations 0725 210 608.
Hailing from Japan, Plunklock is a visual kei band formed in November 2010. Their music combines elements from “kayokyoku” (Japanese traditional music), pop, rock and metal. Shortly after their first live shows, in Tokyo in 2011, the band released two singles Teardrop and Breakout. In 2012, Plunklock will go on their first European tour in an attempt to popularize visual kei, Japanese style rock.Tickets at RON 40 are available through www.vreaubilet.ro.
Dreamstime
Flamenco, classical and new genres Festival, Guitar Recital: Pablo Sainz Villegas - March 11, Romanian Broadcasting Company Concert Hall (Sala Radio) Sisters are doing it for themselves: International Women’s Day is an excuse for fun
Music venues
Pablo Sainz Villegas, considered by critics one of the greatest guitarists of our time, will connect with the audience in a live performance. The concerts will comprise a selection of compositions for guitar written by leading Spanish composers. David Palomar Concert March 15, 16, ArCuB Hall Surrounded by great flamenco musicians such as Ricky Rivera (guitar), Ale Benitez (bass), Javier Katumba (percussion) and Anabel Rivera (vocal accompaniment), David Palomar, who creates flamenco in the most spectacular fashion, will give two concerts featuring a selection of songs from his shows La Dada del Poncho Rojo and Homenaje Flamenco a Chavela Vargas. Tickets can be purchased from ArCub (14 Strada Batistei) for RON 26.5 and 35.
Hard Rock Cafe Band 13 (Trupa 13), considered by many as the band with the best live sound in Romania and the best group with an international repertoire, will play Hard Rock Café. One of the largest of the chain’s outlets in Europe, the venue has all the hallmarks of the classic American brand. Band 13 will start their show at 9 pm; tickets cost RON 25. Reservations on 021 206 6261 The Jacks Piano Club One of the top places for fans of live music to both listen and dance is The Jacks Piano Club. The resident band, made up of three Bulgarian artists, will be your hosts. Relax, have a drink and enjoy listening to their versions of some of greatest hits of the last 50 years, and you will soon feel like you’re among old friends. Reservations on 0762 991 024.
Bars For an evening of Old City fun, head to the Interbelic Cocktail Bar in the little alley Selari. A delicious selection of alcoholic and non-alcoholic cocktails are prepared by chic waiters, inspired by London bartending tra-
ditions. They work under the direct supervision of Costin Gache, who boasts international experience of spirits and bartending. Knock back the most famous cocktails, from the classics Margarita and Kiwi Mojito to feminine-themed beverages appropriate for the day, such as Tall Jane or Raspberry Mee, or the sophisticated Blackberry Highlife and Pear and Ginger. Music is another vital ingredient, and the guest DJs turn the place into an Old City hot spot. Reservations on 0722 100 193. Right opposite the Interbelic is sister business Tiki Bar, a small place of about 35 sqm but with room enough for a sociable group of people ready to taste some of the 25 types of rum cocktails served in ceramic sculptured cups resembling human faces. Borrowing from his trips abroad, Gache has created an exotic atmosphere using interior design elements from the Polynesian-inspired Tiki culture born in 1920s American pubs. A bar for lovers of nature, heaven and abundance. Reservations on 0722 100 193.
Restaurants Fashion, elegance and romanticism make Dada restaurant, on 94bis Matei Voievod,
Thai Moods offers an authentic mix of Asian flavors and feelings. Its quiet location provides a relaxing mood. The cocktails are absolutely delicious and the food uniquely combines salty and sweet, sour and spicy. It all adds up to something magic in the atmosphere and an ever more exotic ambience. Reservations 021 224 68 51.
Tea Houses A few seconds is all it takes to relax in the Oriental themed Ramayana Café. Two floors host six rooms painted in different colors and styles to induce different moods. The red and green rooms are for people who want to socialize, the violet one for quieter encounters and the basement hosts three booths ensuring privacy for your romantic or private discussions. Each table is equipped with a staff call system which guarantees prompt service. Trip-hop, neo-swing, tango nuevo and electro-bossa complete a harmonious ambience. Authentic and organic coffees and teas are brought straight from India, China, Sri Lanka and South Africa. You can also enjoy a narghilea. Reservation: 021 317 16 81. Whether you want an intimate encounter or an exuberant meeting with friends, if you love a brew, Green Tea is the place to go. Stop in one of the four themed rooms – classic lounge, Indian room, Japanese room and French attic – and pick from over 100 tea varieties, such as white, black, green, oolong, rooibos, matte, honeybush, organic, yellow, fruit and lapacho. The teahouse’s sweets are a must-try and when you leave you can take home beautiful teapots, accessorizes or your favorite blend. Reservations 0749 090 202. Dana Niculescu
www.business-review.ro Business Review | March 5 - 11, 2012
CITY 13
RESTAURANT REVIEW
Getting our just desserts
Vecchio, 16 Strada Covaci, 031 430 9577 DEBBIE STOWE You join us as we await the dessert menu, stuffed from a salami-tastic antipasti for two, house salad, solid tomato soup, veal tenderloin and punchy seafood pasta. By this point, even the most gluttonous restaurant reviewer is flagging, and the house will have to produce something special. And there it was: a dessert menu consisting entirely of pictures – not the photos beloved of cheaper eateries where the customers don’t speak the local language, but actual drawings, charming sketches of each option, with the name and price handwritten above. What a lovely touch. This sort of detail is why I consider Vecchio a good restaurant with potential to be even better. It’s already popular, helped by a pleasant Italianate interior with murals and mosaics – think sun-washed Tuscan courtyard. The clientele is civilized – we were seated next to a party of about 20, which usually means noise, but they nev-
Photo: Laurentiu Obae
Vecchio suits its Old City location
er got louder than a couple would have. Undesirable diners have been cannily deterred by the absence of a blaring plasma TV. At 15 pages the main menu is too long to detail (probably explaining why it was not on display outside the restaurant). Plus it’s unnecessary to do so, because it’s standard Bucharest Italian in the expected categories and it’s on the website. There are some eye-catching options – truffles pop up a few times, as does turmeric. The house salad (RON 26) – a fair dish on which to judge – piqued my interest, promising calamari with ginger, honey and berries, the latter turning out to be a sauce. The light fishiness of the calamari worked well with the sweetness, bulked out by a barrage of more common-or-garden veg and a judicious amount of garlic. It, like all the dishes, was generously portioned. Particularly liberal was the antipasti (RON 42 for two people), three or four types of salami with wedges of parmesan, an army of black and green olives served on a bed of ruccola. Nothing fancy, but it did the job. Likewise the tomato soup (RON 14), a thick rustic dish drizzled with pesto and with two cheese-on-toast islands afloat. Seafood linguine (RON 29) did not scrimp on the fish, with mussels, prawns and their pals served in an oily, white wine sauce emboldened by abundant garlic. It was good, and good value. Veal tenderloin (RON 56) was bloody to spec, steeped in a dense, creamy cognac sauce and bedecked by green peppercorns. Desserts (RON 14-16) are the usual suspects; our chocolate cake was a solid slab on a biscuit base decorated with sweet sauces. House wine starts at a reasonable RON 16 for a glass and RON 40 for a bottle. Service was well intentioned if a little erratic – our mains were on the table about a minute after the starters were cleared, when some respite for digestion and chat would’ve been nice, and an extra chair supplied by the manager for our overspill was promptly whisked away by another waiter. But the manager is evidently very professional and I think such blips – which stem from trying too hard rather than complacency – will be ironed out.
Photo: Photo:Laurentiu LaurentiuObae Obae
Photo: Laurentiu Obae
Taste of the old country: Vecchio takes its cues from Italian cuisine and style
www.business-review.ro Business Review | March 5 - 11, 2012
14 IN TOUCH FILM REVIEW
Safe House
WHO’S NEWS
Business Review welcomes information for Who’s News from readers. Submissions may be edited for length and clarity. Get in touch at simona.bazavan@business-review.ro
Ioana Enache has been appointed general manager of Amway Romania. Enache has 19 years of professional experience in sales, marketing, communication, strategy and change management, having worked for companies such as GlaxoSmithKline, A&D Pharma and Petrom. For the past five years she has worked as a consultant.
Gemma Webb
Washington heights: Denzel’s swagger and charm elevate action thriller Safe House
DEBBIE STOWE Director: Daniel Espinosa Starring: Denzel Washington, Ryan Reynolds, Vera Farmiga, Brendon Gleeson On: Cinema City Cotroceni, Cinema City Sun Plaza, Cityplex, Gloria, Grand Cinema Digiplex Baneasa, Hollywood Multiplex, Movieplex Cinema, The Light Cinema Those rookie CIA agents get into some scrapes, don’t they? Frustrated newbie Matt Weston (Ryan Reynolds) has a nonjob in charge of an underused agency safe house in South Africa, and starts the movie so bored that he spends his days throwing a ball against a wall, like Steve McQueen. Regular readers will notice that this is the second edition in a row in which the reviewed film has had the word house in the title, and just as last week’s Dream House turned into a nightmare, it doesn’t take Lieutenant Columbo to deduce that the only certain thing at said safe house will be danger. No surprise then when the CIA’s most wanted rogue agent, Tobin Frost (Denzel Washington), is transferred there. Frost has just walked into the local US Embassy after being on the run with a microchip (one of the two basic plots of all spy films, the other being “hunting the mole”). Frost stands accused of spending the last decade selling American secrets (presumably the film is set pre-Wikileaks) so this would appear to be Denzel in bad-cop, Training Day mode. But wait. He’s being chased by brutal mercenaries, about whom we know nothing apart from that they are foreign and swarthy, which is Hollywood shorthand for scum. So could it actually be Denzel in good-cop,
ISSN No. 1453 - 729X
Man on Fire mode? After an Assault on Precinct 13-style siege, Tobin and Jason Bourne – sorry, Matt, are pursued around Cape Town by baddies, and the movie punctuates the pulsating car chases, shoot outs and explosions with some more reflective scenes where the idealistic new boy and the jaded veteran debate morality, truth and, like, other heavy stuff. It looks like a Bourne film, sounds like a Bourne film and is edited like a Bourne film. There’s the gloomy lighting and colors, shaky camerawork and choppy editing, rooftop chases, generic Middle Eastern bad guys and general subdued tone. It also adheres to the golden rule in uncovering the traitor in spy films: if there’s one genial agency bigwig who is defending and helping the main character and another who is grumpy and skeptical, it’s the former who will turn out to be the mole. Films don’t get more derivative and predictable than Safe House. But a movie that borrows from Bourne and does it well is still going to be a solid action thriller. It’s taut, with the energy level rarely dropping. Though we know what’s coming, it’s dispatched stylishly enough that it’s still entertaining to see it happen. Reynolds makes a handsomely hapless rookie who has to grow up fast and learn some life lessons, and there is a high-caliber supporting cast, notably the excellent Vera Farmiga (George Clooney’s married lover in Up in the Air) and Brendon Gleeson (Colin Farrell’s hitman mentor in In Bruges). And then there is Denzel. Even a phoned-in performance from him (and this is more than that) elevates any film. A flash of the Washington smile, swagger and charm and Safe House’s flaws are largely forgiven. ∫ FOUNDING EDITOR Bill Avery EDITOR-IN-CHIEF Simona Fodor SENIOR JOURNALIST Otilia Haraga JOURNALISTS Simona Bazavan, Ovidiu Posirca COPY EDITOR Debbie Stowe COLLABORATORS Anda Sebesi ART DIRECTOR Alexandru Oriean PHOTO EDITOR: Mihai Constantineanu PHOTOGRAPHER Laurentiu Obae LAYOUT Beatrice Gheorghiu
is the new general manager of British American Tobacco (BAT) Romania. She is taking over from David Waterfield. Webb joined BAT 11 years ago as trade marketing and distribution manager for Western Europe and shortly afterwards was appointed general manager for the UK and Ireland. She has also worked for a chemicals manufacturer in Germany.
nated by international organizations, foreign representations to Romania, European universities and research institutions.
Simona Neagu has been promoted to equity partner in the litigation department of Nestor Nestor Diculescu Kingston Petersen (NNDKP). Her professional expertise spans 17 years as a practicing attorney and judge. She represents clients in matters involving international commerce, banking and company law, enforcement proceedings, insolvency proceedings and civil law (restitution). She has significant expertise in infrastructure and FIDIC projects. She is a graduate of the University of Babes Bolyai Law School in Cluj-Napoca and of the National Institute for Magistrates. Neagu coordinates the NNDKP ClujNapoca office at partnership level.
Sorina Olaru (Cretu)
has been appointed VP of Volksbank, in charge of restructuring and credit recovery activities. He previously worked as chief risk officer for Garanti Bank Romania. Serban has over 16 years of experience in the financial domain, 12 of which were spent in risk and credit management. He has held management positions at OTP Bank Romania, CA IB Corporate Finance Romania, Millennium Bank and Citibank, and has also worked abroad for ING Bank Canada as a market risk analyst. Serban is a certified financial analyst (CFA) and holds diplomas in Law and Electrical Engineering from the Polytechnics University in Bucharest.
has been promoted to equity partner in the litigation department of NNDKP. She has 12 years of expertise, specializing in trademark and copyright disputes related to patents and industrial designs. Her fields of expertise include international commercial arbitration, intellectual property law, civil and professional liability, commercial and administrative law. Olaru graduated from the University of Bucharest Law School and is a member of the Association of International Arbitration. She joined the firm in 2007 and coordinates NNDKP’s Brasov office at partnership level.
Cristina Taeuber Ana
Ioana Niculeasa
has been appointed coordinator of the structural fund department of Tuca Zbarcea & Asociatii. She has seven years of professional experience in the field, having worked for the Delegation of the EC in Bucharest. For the past two years she has been program director for the Norwegian Cooperation program with Romania within the Norwegian Embassy. Over the years she has also worked as legal expert, trainer and national rapporteur for programs coordi-
has been promoted to equity partner with NNDKP. She is the head of the real estate department, with 12 years of legal experience in the real estate field. Having joined the NNDKP team in 2005, Niculeasa has expertise in all real estate matters. She also advises clients on mergers and acquisitions and general corporate matters. Niculeasa is a graduate of the University of Bucharest Law School and the University of Paris 1 Pantheon-Sorbonne.
Sorin Serban
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