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Top 10 retail news in Romania

Market prospects in Romania Booming cities: Arad

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Atrium Centers. We create style. Nov. 2007

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we create Style in association with Dawnay, Day PanTerra Limited

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STYLE MAKES THE WORLD GO ROUND ‘Style is most important, whether it be a book, a piece of music, a painting, or a piece of sculpture. My style comes out of my whole life. Style is the result of the state of mind of the artist, the subject-matter one deals with, the state of one’s health, and the clarity of one’s mind: all that goes into the work.’ (Antonio Salemme, sculptor and painter)

sra I l chae Mi

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As an architect and Managing Director of Atrium Centers I hope it is not disrespecful to adopt these thoughts as a creed for myself and my company. At Atrium Centers, we believe that even developing shopping centers is a matter of style. Our team’s main motivation is to respond to a growing demand for quality spaces in emerging markets. To create style - by constructing shopping malls of excellent design, by creating the best tenant mix of selected brands, and by handing over new public spaces that can provide a sense of identity and community to hundreds of thousands of future customers. For me style is a careful selection based on the fi rst and the last impression, on intuition and conscious decisions. Style is both the method and the result, the how and the what. Without style there is no civilisation, no real business and no joy in what we do. At Atrium Centers we believe that ultimately it is style that makes the world go round.

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CONTENTS COMMERCIAL PROPERTY MARKET PROSPECTS IN ROMANIA Joining the EU in January 2007 represents a landmark occasion in the history of Romania and is a fitting conclusion to many years of economic transition.

ATRIUM CENTERS. WE CREATE STYLE. Arium Centers was launched in 2007 by Dawnay, Day PanTerra, in partnership with experts of the Central and Eastern European market. Its vision can be summed up in just three words: ‘We create style’.

ARAD - THE FOURTH FASTEST DEVELOPING CITY IN ROMANIA According to a recent study by the Romanian weekly Capital, Arad ranks fourth among the five fastest developing cities in Romania, following Bucharest, Cluj and Sibiu. The city has become a hive of real estate developments.

TATTOOS FOR CEAUSESCU Alina Latan, one of the youngest fashion designers in Romania, has managed to gain the respect of her more experienced colleagues in a very short time, as well as catching the eye of foreign personalities.

MEET US AT THE MAPIC - THREE JOURNALISTS HAVE THEIR SAY At events like MAPIC, it is important for the media to meet international specialists, to observe trends from other real estate markets and to make connections between these markets.

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ATRIUM CENTERS MAGAZINE Published on behalf of Atrium Centers by Aera MHC Kft. • H-1067 Budapest, Teréz körút 39. Phone: +36.1.269.3176, Fax: +36.1.301.0793 Artwork, DTP: Aera MHC Content: Aera MHC, Nicola Porter Novelli Atrium Centers, in association with Dawnay, Day PanTerra Limited. • H-1072 Budapest, Klauzál tér 2-3. Phone: +36.1.413.7664, Fax: +36.1.413.7665


TOP 10 RETAIL NEWS IN ROMANIA PLUS OPENS ITS 47 TH STORE IN BRAD On the 24th of October, the German discount store network Plus has opened its 47 th store in Brad, Romania. The new store has an area of approximately 1,050 sq m, of which 840 sq m are allocated for the sales operations themselves; the investment amounts to 1.5 million euros. The store offers more than 1,500 products, including food and non-food products. The General Manager of Plus Discount Romania, Uwe Klostermann, declared that ‘The Plus store in Brad is our fourth opening in the county of Hunedoara and by the end of 2007 we will launch other new stores, most of them in new towns across Romania’. www.revista-piata.ro

15 BILLION LEI – SALES OF THE 20 BIGGEST MARKETS We respect our tradition started two years ago; that of offering an overview of the consumer goods market at the end of each year. Together with Nielsen, we present the top 20 markets in terms of sales value recorded exclusively in the retail stores registered in the last 12 months. For food products, the reference period is June 2006 – May 2007, whereas for non-food products, the period is May 2006 – April 2007. The situation remains unchanged in the upper section of the rankings: cigarettes still remain the product with the highest sales, followed – at a substantial distance – by beer, carbonated drinks, chocolate, coffee and salami. According to data gathered by Nielsen, cigarette consumption has decreased by 8% in the past 12 months. Among the top 20 categories, the most dynamic was that of soft cheese, with an increase in revenues of over 58%. This category is followed by non-carbonated drinks, brandy, absorbent tissues, mineral water and salamis. The least dynamic categories – detergents, vodka and chewing gum – recorded, however, sales growths of over 10%, which indicates the fast development of consumer goods markets. In fact, the average sales growth rate was 27%. In most cases, the increase in revenues is driven by higher consumption rates, either as a result of the weather conditions or due to the higher incomes of buyers. www.revista-piata.ro

CARREFOUR ACQUIRES ARTIMA FOR EUR 55 MILLION The French retail chain Carrefour Group has officially announced the signing of the agreement protocol for the acquisition of Artima, held by the investment fund Polish Enterprise Fund V(PEF V) Company, for 55 million euros. Artima currently owns 21 supermarkets in the western part of Romania, with a total selling surface of 21,000 sq m. With this transaction, Carrefour enters the segment of supermarkets thus enhancing its strong presence on the hypermarket segment. This acquisition illustrates the strategy of the Carrefour Group to strengthen its position on growing markets, by a multi-format approach, under one single brand adapted locally. www.standard.ro

officials announced the opening of another store in Braila. In the middle of August, Penny Market inaugurated the 33rd store of the chain and its third store in Bucharest. Also in August, the company took over one of the two spaces which used to belong to Mara supermarkets in Focsani. For September, the representatives of Penny Market announced the opening in Galati. At the beginning of August, Carrefour inaugurated its 5 th store in Bucharest and 8 th store in the chain, and by the end of this year it will open two more hypermarkets, one in Iasi and the other in Cluj Napoca. Kaufland continues to be the most active retailer and opened a hypermarket in Zalau in the month of August, which was followed by the inauguration of the third store in Iasi. G’market also comes up with news for October, announcing two openings, one in Focsani and one in Bacau. The supermarket will be set up in the space recently rented from the Mara network. The rental contract is for a period of ten years. The chain currently owns five supermarkets, of which three are in Bucharest and two in Iasi. At the beginning of September, Auchan Romania will open a supermarket within the Iulius Mall in Timisoara. Discount Market supermarket will have an area of 2,600 sq m and operate for approximately one year, until the opening of the future Auchan hypermarket which is being built as an expansion of the Iulius Mall. Auchan currently owns one hypermarket in Bucharest, and the company’s officials have announced the opening of three more facilities in Piteºti, Cluj Napoca and Târgu Mureº to be completed by the end of this year. www.revista-piata.ro >>

ALERT PACE IN MODERN RETAIL Plus Discount has opened three new stores, thus becoming the widest network with a total number of 45 units. The stores were opened in Aiud, Curtea de Arges and Brasov. For September, company

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ENTRANCE OF NEW PLAYERS SHARPENS THE FIGHT BETWEEN FURNITURE RETAILERS ON A MARKET HEADING TOWARDS 1 BILLION EUROS The opening of new stores on the medium price segment will render the competition on the local furniture market even fiercer; price pressure and offer segmentation being the key words of the industry. Although apparently it was at a standstill until last year, the local retail furniture market seems to have awakened in the past year, with the arrival of the Swedish group IKEA and the announcement of the plans of the Austrian company KIKA. Although it was somewhat protected against the competition of large players so far, the local market has had enough time to mature, and the growth potential is very appealing to foreign investors. ‘At the moment, all Eastern European countries are registering a quick development rate, and Romania is no exception. The increase of Romanians’ purchasing power has resulted in the shaping of a middle class with increasing incomes, parallel with real estate development, which finally leads to the increase of furniture and accessories market’, Cornel Opriºan, Retail Manager IKEA Romania, stated. www.zf.ro

SONAE SIERRA: OUR PRIORITY IS TO BUILD A MALL IN BUCHAREST QUICKLY The Portuguese company Sonae Sierra, the owner of the River Plaza Mall in Râmnicu Vâlcea, aims to become the number one shopping center operator in Romania in three years. Sonae Sierra has already made investments in Râmnicu Valcea, Craiova and Ploieºti, and the main target of the Portuguese company at the moment is to find a piece of land in Bucharest in order to develop a mall on the most competitive market of shopping centers. ‘In all the countries where we are present, we wish to be among the top three market operators. In Romania, considering that most of the developers sell the malls after their completion, we aim to become the number one operator in three years’ time, in terms of the area to be leased’, Jorge Morgadinho, Expansion Manager Sonae Sierra, announced. www.zf.ro

SUN PLAZA CONSTRUCTION STARTS Sparkassen Immobilien, the real estate investment division of Erste Group, in partnership with the shopping center developer EMCT, has started the construction works on the Sun Plaza shopping center in Bucharest, an investment which amounts to EUR 150 million. ‘The investment in this shopping center is just a small part of our development plans for Romania. In the following years, the amount of our investments will reach 500 million euros’, declared Ernst Vejdovszky, Member of Sparkassen Immobilien Board. Sun Plaza complex has an area of 196,000 sq m, of which 78,000 sq m can be leased, and will include 170 stores, a hypermarket, a do-it-yourself store and a furniture store. www.zf.ro 6

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THE NUMBER OF MALLS COULD DOUBLE BY 2009 The shopping center market in Romania will increase by some 850,000 sq m, representing rentable spaces to be delivered between July 2007 – December 2008, whereas the available area at the end of last year was around 560,000 sq m – a survey conducted by the real estate consultancy company Cushman & Wakefield indicates. During the period analysed, several shopping centers were completed, such as the Polus Center Cluj or the Felicia Shopping City in Iaºi, which increased the existing area by another 100,000 sq m. In the following months, other such shopping centers will be inaugurated - Iulius Mall Cluj-Napoca, Suceava Shopping City, and three European Retail Park projects - in Târgu-Mureº, Bacãu and Brãila. www.zf.ro

MEDIUM-SIZED TOWNS WILL HAVE AT LEAST TWO SHOPPING CENTERS BY 2010 The large number of projects announced for Bucharest and other sizable cities in the country has pushed developers towards medium-sized and small towns. The shortage of modern shopping spaces in Bucharest and other towns in the country has caused developers to announce the opening of some 90-100 shopping centers in the following three years, with the aim of attracting retailers and deterring competition. ‘All towns with more than 75,000 inhabitants have at least two shopping center projects planned for the next two to three years. Although the planned centers can only be developed in certain towns, developers present more extensive plans of shopping centers, in the hope of deterring the competitors from entering certain locations’, according to the half-yearly report of the real estate consultancy company, Colliers International. www.zf.ro

MALLS LOCATED IN BIG CITIES ARE MOST MOST LIABLE TO FAIL The biggest failures of shopping centers are expected in Bucharest, where most of the projects are planned. The construction and administration of shopping centers are probably among the most complex activities of real estate developers, which is why some of the retail projects will remain empty or will change their location. ‘At the moment, Bucharest, in terms of projects announced on the market, is the most crowded, and where, consequently, we will probably witness some of the most spectacular failures’, Luiza Moraru, Head of Retail Department with the real estate consultancy company Eurisko, observed. In other capitals in the region, where approximately 20 big shopping centers have been built in the past few years, such as Prague and Warsaw, the developers of certain projects have decided to change the project’s final purpose into offi ces or storage spaces, as the buyers’ turnover was not satisfactory for the tenants. www.zf.ro


COMMERCIAL PROPERTY MARKET PROSPECTS

Source: DTZ Research

IN ROMANIA OFFICES The Bucharest office market is one of the fastest developing markets in the CEE region. Now the fourth largest market in the region after Warsaw, Prague and Budapest, the pace of growth has quickened since 2003. Annual growth is set to overtake the more mature markets in Central Europe in 2007-2008. Over 400,000 sq m will be delivered during the period. A further 1.2 million sq m are at the planning stage. Most new buildings to date have been less than 10,000 sq m but the quality of the market is evolving. Several larger floorplate business park type projects are in the pipeline for 2007 and 2008, mostly in the northern districts of Pipera and Baneasa. Bucharest’s first skyscrapers will appear in 2008 which are likely to attract interest from key demand drivers such as the large banks, financial and insurance companies, the BPO sector and ICT firms. Congestion and lack of development plots in the city centre have long since pushed commercial development in Bucharest north of the city center to the area around Piaþa Victoriei and Piaþa Charles de Gaulle, and further north to the World Trade Center, and the favoured residential locations of Bãneasa and Bãneasa airport. The North submarket constitutes almost 40% of total modern stock. Occupiers have followed supply, with the North and Center North submarkets accounting for 65% of total takeup in 2006. Demand has been expanding dynamically, with take-up reaching 230,000 sq m in 2006, up from 70,000 sq m in 2003.

RETAIL The retail sector is rapidly developing throughout Romania. Bucharest is currently under-supplied – 0.07 sq m of shopping center space per head, cca. 20% of the Warsaw level – but is set to see a tripling of modern stock by 2009. Development outside the capital is taking off. Shopping center projects are underway or already have appeared in most cities over 100,000 inhabitants. Several malls have already opened in Braºov, Iaºi, Cluj, Timiºoara, Constanþa, Sibiu, Arad and Oradea. The competition between retailers to grab a share of the growing spending power of consumers has been fierce. Existing retailers are expanding their nationwide chains while new entrants across the sectors are searching for entry sites. The food retail, hypermarket, electronics, DIY and home furnishing sectors have driven the expansion of the retail sector.

WAREHOUSES The logistics market was the last commercial market to take off in Bucharest but development has accelerated in the last two years. Modern stock in the capital now reaches cca. 300,000 sq m, almost all of which has been absorbed. Dynamic economic growth, rising occupier interest in higher quality facilities, accession to the EU, growing inward foreign investment, and the rapid development of the retail sector have encouraged developers to enter the market. 2007 will see a rapid increase in the pace of growth with the market set to double in size by year-end. Most of the new space is being developed speculatively. Development will continue to be focused on the Northern and Western peripheries of Bucharest, along the A1 Highway and the ring road. Take-up has been rising in tandem with new supply. Take-up increased by 60% per annum in 2005-2006,

driven by company expansions in the logistics, retail, distribution, and light industrial sectors, as well as new entrants. Most requirements are in the 2,500-5,000 sq m range but transaction size is steadily increasing. Outside the capital, development has been limited so far. Romania’s medium to long-term potential as a logistics location is substantial. The country’s geographic location will enable Romania to compete for cross-border logistics business in the growing SouthEast Europe sub-region. The large internal market has led many logistics companies to seek two distribution facilities, north and south of the Carpathian mountains. The severe infrastructure deficit has held back growth and damages the country’s competitiveness. The modern motorway network enabling swift long-distance intercity travel will not be completed for at least 10 years. Low labour costs however mean longer travel times can still be cost-effective.

Source: DTZ Research CEC Bank Building (foreground), Bucharest Financial Plaza (background)

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CITY PROFILES Bucharest is the economic engine of Romania, and has the highest GDP and living standards in the country, the lowest unemployment rate at cca. 2.5%, and a quickly emerging middle class. The capital will continue to emerge as one of the major commercial hubs of the CEE region, with the services (particularly financial, media, retail), telecoms and software sectors driving its GDP growth. The city lacks a good urban development plan however. Inefficient and sometimes corrupt city management has meant development tends to be erratic. Traffic congestion and lack of parking are major challenges for the city. There is currently just one public multistorey car park in Bucharest with only a limited number planned. The extension of the metro system is underway. Several new stations are planned to open in 2008. Construction of a fifth line is hoped to start in 2008. Other planned infrastructure projects include the construction of an internal ring road, the regeneration of the old historic core, the Basarab fl y-over road that will connect the Western part of the city with the North and East, and the widening of the arterial road Soseaua Pipera. The city is home to some of Europe’s largest development projects. Bãneasa Investment’s project in the northern district of Bãneasa will comprise over 1 million sq m of modern offices, retail, and residential space when complete in five years. ECE’s Sema Parc project, scheduled for completion by 2015, will comprise 659,000 sq m of built space on an industrial zone to the west of the city center. The scheme will include luxury residential, retail, hotel and office elements. The project will be completed by 2015. Other cities are starting to catch up with Bucharest. Retail development, particularly in the wealthier Transylvania region in the centre and west of the country such as Braºov, Cluj, Timiºoara, Arad and Sibiu – 2007’s European Capital of Culture – is accelerating, while the first office parks are beginning to appear in cities such as Timiºoara and Constanþa. The Black Sea port of Constanþa is emerging as the gateway to southern Europe for sea freight. Leading global port operator took over management of its container terminal in 2004. There are plans for a rail link between Constanþa port and Budapest in Hungary. Source: DTZ Research

ROMANIA: POST EU ACCESSION PROSPECTS Joining the EU in January 2007 represents a landmark occasion in the history of Romania and is a fitting conclusion to many years of economic transition. The country is now launched on a growth path similar to that enjoyed by the neighbouring EU-8 countries who entered the EU in 2004, is an established part of the rapidly-growing sub-region of South-Eastern Europe, and is well-positioned with respect to trade routes through the Balkans and to the East. Further FDI potential will be determined not only by internal factors, such as the country’s progress in improving the legal and regulatory system, but also by external factors such as the extent to which the new member states in CEE maintain their competitive advantage in the eyes of foreign investors. Greater macroeconomic stability, strong GDP growth, continuing liberalisation of the Romanian market and improvements in the business environment should make Romania more competitive and have a positive effect on FDI inflows. Major challenges lie ahead. Romania is much poorer than the EU8 countries and far behind the EU average in terms of GDP per capita. There is a risk that without the anchor of the accession process, as has happened elsewhere in CEE, the government will relax its discipline and slow down necessary but often painful structural reform. The country’s institutions are improving although remain weak by Western European standards. While the government is tackling corruption and excessive red tape, both remain prevalent and a drag on economic growth. Despite these challenges and risks, investment is pouring into the country’s economy and property markets, particularly in the growth engines of Bucharest, and locations such as Constanþa and the major cities in Transylvania. Investors have placed their confidence in Romania’s long-term prospects. Source: DTZ Research

SWOT ANALYSIS OF THE ROMANIAN MARKET

Romania: Retail sales growth 25 % change yoy 20 15 10 5 0

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Private consumption Source: National Statistics

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Source: DTZ Research


ATRIUM CENTERS WE CREATE STYLE Atrium Centers is introducing a new style of shopping and entertainment centers enters in major cities across ccroosss R cross Romania mania and a in other e countries oun n of Central and Eastern Europe. Due to the company’s ownership, Atrium Centers has as a remarkable experience rienc in the retail segment nt in the th region.

Atrium Center Satu Mare

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Arium Centers was launched in 2007 by Dawnay, Day PanTerra, in partnership with experts of the Central and Eastern European market. Dawnay, Day PanTerra is the sole advisor to Dawnay, Day Carpathian Plc, the UK AIM listed company, which invests in retail property throughout the whole CEE region. Investments are managed in six countries, comprising 52 properties totalling 363,000 sq m and 940 tenants. The success of Atrium Centers developments is guaranteed by the following facts: ➔ malls are always located at easily accessible and highly visible central sites of major cities; collaborating with consultants ➔ with in-depth knowledge of the retail trade, the company can guarantee the highest quality of design and construction works; ➔ the Atrium C enters team pays particular attention to creating the best tenant mix for the success of its shopping centers as well as the best tenant mix of highquality fashion and entertainment brands for each location; the company takes a long-term view of investment ➔ and prefers to own the assets it develops. CURRENT PROJECTS The company has ongoing projects in four prominent cities of Romania: Cluj-Napoca, Arad, Baia Mare and Satu Mare. The cities are all of key importance within their respective regions, and sites were carefully selected to reach the widest possible catchment area.

Atrium Center Cluj is a large-scale shopping and entertainment center project in the very heart of ClujNapoca, with an area of over 94,000 sq m and also featuring A class office facilities and a four-star hotel. The site has a generous facade that faces the main road of the city, offering excellent visibility. The mall is located close to the administrative, commercial and cultural downtown areas. Atrium Center Arad, a typical city center shopping mall with a unique triangular shape, is located in the heart of Arad. Organized on three levels, the mall will contain 150 retail units on a total gross area of over 62,000 sq m. The site is located right between the main railway station and the central bus station. Accessibility is excellent from all par ts of the town both by private and public transport.

Atrium Center Baia Mare

Atrium Center Baia Mare is a major shopping center scheme in the city of Baia Mare, located on the most important arterial road of the city. The six-hectare site will provide space for a modern shopping mall with over 120 shops distributed over the ground and fi rst fl oors with a total leasable area of over 35,000 sq m. Atrium Center Satu Mare, located right in the center of the city, will lie on a 2.6-hectare site, providing superb visibility and accessibility. Comprising of 27,000 sq m of GLA, the mall will contain over 135 shops, as well as a food court and entertainment areas. Atrium Center Arad in Arad, Romania. www.atriumcenters.com Atrium Center Satu Mare

Atrium Center Arad

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IN THE NEWS ATRIUM CENTERS. WE CREATE STYLE. The vision of Atrium Centers can be summed up in just three words: ‘We create style’. Atrium Center malls are always style-oriented. Our team is determined to set a new trend in developing cities of the Central and Eastern European market. Style for us means fashion, design and a new way of life. STYLE AS FASHION Being centers of style, Atrium Centers malls lay strong emphasis on fashion. Our malls always have the best tenant mix of selected national and international brands targeting demanding, fashionconscious customers. STYLE AS A WAY OF LIFE Atrium Centers shopping malls offer a new way of life. Malls will have everything that a 21st century city-dweller is looking for, and much more than that. People will find here identity and community. STYLE AS DESIGN Atrium Centers malls, always located at easily accessible and highly visible central sites of major cities, will be of highest quality both in design and architecture. We have a thought-through concept for each location and invest a lot of effort into making these malls impressive inside and outside, offering new spaces for the local community.

Over the next few years, Romania will experience an increased pace of development in line with European standards. The retail segment will undergo swift growth in the next two years, bringing modern facilities to less developed towns as well’, Paul Rogers, Manager within Dawnay Day Group, stated. Following from this, the Brits will purchase between five and seven pieces of land intended for the development of shopping center projects; in the future, the company wants to purchase lands in all the towns with more than 70,000 inhabitants’. (Atac, 18 May, 2007 - The Brits invest in malls for the province) ‘Our mission is to develop and manage projects in line with European standards, involving national and international retailers. The new centers will be situated in accessible locations in town centers and will gather brands known to the Romanian public in a unique combination’, declared Michael Israeli, Managing Director Atrium Centers.’ (Bucharest Business Week, 21 May, 2007 - Dawnay Day Group builds three shopping centers) With an investment of some 85 million euros, Atrium Center Cluj is one of the major real estate projects in the central part of the city. (7 Plus, 17 May, 2007 - 85-million-euro mall in Cluj)

Atrium Center in Arad will host 150 stores. The Arad mall will be the first Atrium Center to be launched on the market. It will be completed by the end of next year and will be situated on Aurel Vlaicu Blvd. (Adevãrul, 17 May, 2007 - The Brits bring 90,000 sqm of commercial areas in Arad and Baia Mare) ‘Our strategy was to start the first development stage in Transylvania. Cluj is the most important city in the region, not only from an industrial and administrative viewpoint, but also in terms of accessibility and number of inhabitants. Arad is a city with a long history in industrial and commercial tradition, and has experienced a dynamic evolution due to its location in the western part of Romania’, according to Adina Cãlinescu, Country Manager Atrium Centers. (Adevãrul de Arad, 24 May, 2007 - Dynamic evolution in Arad) ‘The company has decided to make this investment in Satu Mare due to the geographical position of the city, in the north-western part of the country, close to the border with Ukraine and Hungary. The decision was also made because there is no other shopping center in Satu Mare’. (Cronica Sãtmãreanã – 5 May, 2007 - Dawnay Day opens shopping center in Satu Mare)

ATRIUM CENTERS MALLS LAY STRONG EMPHASIS ON FASHION

Atrium Center Cluj

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DAWNAY, DAY PANTERRA – FOCUSED ON CEE The Dawnay, Day Group specialises in property investment, fund management and financial services. The Group currently manages over 10 billion dollars of assets. Dawnay, Day PanTerra is the sole investment advisor to Dawnay, Day Carpathian, which is listed on the UK stock exchange and invests into retail property throughout the entire CEE region. Dawnay, Day PanTerra’s management team is based in London, Warsaw, Budapest and Bucharest. Our Atrium Centers joint venture represents our biggest activity in property development and we are very excited to have a joint venture that we can rely on to operate with the same philosophy and care in selecting projects as we do. Atrium Centers has a new, young, exciting management team that happens to be focused on one of the most interesting new markets for retail development in the CEE region.

We are very interested in continuing to look into new markets where retail product currently does not serve the community. One of the areas of focus for Dawnay, Day PanTerra is the CEE region, and we are actively looking at retail projects here on behalf of Dawnay, Day Carpathian. Currently, we are present in Poland, Czech Republic, Hungary, Lithuania, Latvia and Romania. We have undertaken a number of joint ventures on individual projects, but we have found the team at Atrium so interesting that this is the first corporate operational joint venture that we have set up. It is very important for us that Atrium Team are finding the very best sites and putting together what we believe are the most viable projects in these cities. We are confi dent that we are delivering projects that will be of great excitement to retailers and customers.

Dawnay, Day Dawnay, Day was established in 1928 and has been under the present private ownership since the early 1980’s. The group’s principals and staff have developed considerable expertise in active property management, financing, investment, transactions and portfolio construction. With over 20 years of property investment experience the group has a diversified commercial property portfolio in Europe including Germany, the Czech Republic, Hungary, Poland, Ukraine, the Baltic States and India.

Dawnay, Day Carpathian Plc • Investor in retail property across CEE • Raised £240 million of equity from the offering to investors via the AIM market if the London Stock Exchange • DDC invests this equity, combined with secured debt gearing against property assets, to acquire a substantial property portfolio of approximately £1.2 billion (€1.75 bn)

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Paul Rogers Managing Director – Dawnay, Day PanTerra Ltd.

Income investments • 52 properties • 363,000 sq m • 940 tenants New developments • Funding 171,581 sq m of new projects

Dawnay, Day PanTerra Ltd • Dawnay, Day PanTerra (‘DDPT’) is the sole advisor to Dawnay, Day Carpathian Plc • DDPT has an established team with a wide variety of international experience in retail property • DDPT’s principal objective is to identify acquisition targets and manage transactions and portfolios • DDPT has gained extensive local and regional knowledge due to its activities in the Central & Eastern European property markets and has an established local presence with offices located in London, Warsaw, Budapest and Bucharest • DDPT is the majority owner of Atrium Centers In addition to D DC, D D P T’s main activities include: • A track record of large scale joint venture investment projects in the UK and the continent with UK and institutional and private co-investors • A growing involvement in the residential, mixed use and hotel sector in CEE and Southern Europe


ADVISORS

OF ATRIUM CENTERS

CUSHMAN & WAKEFIELD ACTIV CONSULTING Cushman & Wakefi eld is the world’s largest privately held real estate services fi rm. Founded in 1917, the fi rm has 215 offi ces in 56 countries around the globe, and employs more than 12,000 talented professionals. Cushman & Wakefi eld delivers integrated solutions by actively advising, implementing and managing on behalf of landlords, tenants, and investors through every stage of the real estate process. These solutions include helping clients to buy, sell, fi nance, lease, and manage assets. Cushman & Wakefi eld also provides valuation advice, strategic planning and research, portfolio analysis, and site selection and space location assistance, among many other advisory services. The establishment of the Romanian office follows the acquisition of Activ Consulting, which has been Cushman & Wakefield’s Associate Office in Romania for the last 11 years. Cushman & Wakefield Activ Consulting is the national leader in Romania’s retail market, with a portfolio of approximately 25 shopping centers both in Bucharest and across the rest of the country. These key centers include Feeria Shopping Center /Carrefour shopping gallery, Sphera Building Center and Prosper in Bucharest, Lotus Market in Oradea, Central in Cluj, Ziridava in Arad, Ulpia Shopping Center in Deva, Nera Shopping Center in Reºiþa, Magnolia in Braºov, and many others. ➔ www.cushmanwakefield.com

DTZ ECHINOX The DTZ brand was launched in Romania in November 2002 through a partnership with Echinox. The company currently operates from three offi ces around the country, in Bucharest, Iasi and Sibiu. The team consists of 60 people at the present time. To further support positive business development, DTZ Echinox has doubled its staff in the past year, having fully qualified professionals in each of its departments: property management, offi ce, residential, valuation & consulting, research, industrial, land, retail and marketing. Over the last 4 years, DTZ Echinox has more than doubled its turnover on an annual basis, a trend which is also expected to hold true for 2007. Furthermore, the company continues to reinvest the profi ts in developing its business. DTZ offers a full range of property services including agency services – offi ce, retail, industrial, investment, residential, land, landlord and tenant services and professional services – valuation & consulting, property management, planning and development consultancy and DTZ Echinox has played a pioneering role in the most significant investments on the Romanian real estate market such as the first institutional office investment – ‘Europe House’ Europolis – GTC, USD 30 million, 2003 – and the first institutional logistics park investment: ‘Cefin Logistics Park’ Europolis – Cefin Real Estate, Euro 150 million, 2004. It has also supported the following clients in their entry to the market: GE Real Estate; Dawnay, Day; Heitman; Europolis. ➔ www.dtz.com/ro

CASIOPEA GROUP Casiopea Group is an international architecture and design company specialising in mega projects consisting mainly of commercial and residential units, combined with offi ces and hotel complexes. The company is active in Central and Eastern Europe involved in large scale developments of 200,000 sq m to 1,000,000 sq m gross areas. In the last 10 years Casiopea Group has designed more than 60 shopping and power centers, including entertainment facilities, cinema and Imax. The company’s portfolio also includes more than 15,000 residential units on more than 900,000 sq m. The company’s headquarters are situated in Budapest, Hungary, with subsidiary companies in Poland and Romania. Besides architecture, Casiopea Group provides general design services including structural, electrical, mechanical, traffic, landscape and interior design. The team consists of more than 150 architects and engineers with extensive international experience. Key Developers collaborating with Casiopea Group on most of their projects are: Plaza Centers, Sybil Holdings – Sybil Europe, Atrium Centers, ICD Investments, Olimpia Group, G.B. Europa Group and Home Center. Casiopea Group has been working on the architecture and design of Atrium Center Arad, Baia Mare and Satu Mare. ➔ www.casiopeagroup.hu

ARHIMAR ARCHITECTURE AND DESIGN The Arhimar architecture and design company was established in 1998. Based in Cluj-Napoca, the company is a major player in the Transylvanian region. Arhimar’s main partners include both Romanian and international investors based in Romania, looking for highquality services in architecture, design and consultancy. The company is renowned for its professionalism, and lays strong emphasis on precision, keeping deadlines, and ensuring that its customers are satisfied. The services provided by Arhimar include the obtaining of approvals and planning permission, as well as property logistics. Arhimar is popular with investors as a result of its widespread experience in the local market. The company employs 16 architects at present, but this number continues to grow, in line with a 60% increase in clients. The company’s turnover for 2006 amounted to EUR 1,338,601, whilst it is predicted that sales for this year will total some EUR 2,000,000. Although Arhimar has concentrated on projects mainly in the city of Cluj Napoca, the company is also involved in projects in other Romanian cities including Bucharest, Târgu Mures, Satu Mare and Braºov. The company’s client portfolio comprises a diverse range of international companies such as OMV, Profi, Billa, Praktiker, Kaufland, Baumax and Iulius Mall. Arhimar is responsible for the architectural works of Atrium Center Cluj. ➔ www.arhimar.ro

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ARAD THE FOURTH FASTEST DEVELOPING CITY IN ROMANIA According to a recent study by the Romanian weekly Capital, Arad ranks fourth among the ďŹ ve fastest developing cities in Romania, following Bucharest, Cluj and Sibiu. The city has become a hive of real estate developments and its municipality budget doubled between 2006 and 2007. With ongoing projects such as Atrium Center Arad, the retail map of the city will be completely redrawn in the coming years.

The Cty Hall of Arad

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Arad is one of the oldest settlements in Romania: the area was first mentioned in 1028 when the domain of the Hungarian Kingdom extended over this area. To this day, the city has a multi-ethnic character, its population comprising of Romanians, Hungarians, Germans, Jews and Serbs. Having the oldest theatre in the country and a Music School some 170 years old, the sixth oldest in Europe after Paris, Prague, Brussels, Vienna, and London, Arad has a traditionally rich cultural life. As any European city its size, Arad offers a variety of entertainment and cultural activities, ranging from theatre performances, museums, philharmonic orchestra concerts, arts exhibitions, cafes, through to festivals and feasts. The city boasts a diverse architecture with buildings erected in baroque, renaissance, eclectic, classic, neo-gothic and art nouveau style and, typical to the region, the city hosts a wide range of religious communities. But today this South-West Transylvanian city is making a new name for itself. The Arad region has the merit of being the most important transEuropean road and rail transportation junction point in Transylvania, included in the 4th Pan-European Corridor linking Western Europe to South-Eastern European and Middle Eastern countries. The geographical location of the city at the junction of major commercial roads as well as the proximity of the Western border has always favoured its economic development. Traditionally, Arad has been famed for its freight and passenger railcars factory, but companies specialising in everything from clothing and textiles, food, furniture, car equipment and electric components through to shoes have been attracted to this city of 173,000 inhabitants. Today, Arad is the fourth fastest developing city in Romania, following Bucharest, Cluj and Sibiu, with a host of national and international real estate developers showing interest in the city. Most large-scale developments in Arad will come from the retail segment. Ongoing projects, such as Atrium Center Arad, a 62,000 sq m GLA city center mall with a handover date of Q4 2008, will completely redraw the retail map of the city which, to date, has had a minimal supply of modern shopping center space. At present, the city has only one major shopping center; Ziridava (cca. 6,100 sq m GLA),

ARAD OFFERS A VARIETY OF ENTERTAINMENT AND CULTURAL

a former state-owned department store located in the downtown area. The food retail sector is developing intensively yet still continues to show a great potential for growth. Main players on this market include Metro Cash & Carry, Selgros Cash & Carry, Billa and Profi, but there are also new players such

as Real Hypermarket, Kaufl and Hypermarket and Spar Supermarket appearing as well. With a real purchasing power above the national average and a strategic location in the region, Arad is very likely to remain a city buzzing with demolition and construction works for the years to come.

THE FORTIFIED TOWN OF ARAD The fortified town of Arad is one of the most important historical monuments existing in the Western part of the country. The fortress was built in the unique shape of a double star with 6 corners. After its completion in 1783, the fortress housed military units and Arad was changed into a military, political center of the Austro-Hungarian Empire. During the Napoleonic wars, many French prisoners, while after the Hungarian uprising of 1848, many rebels were held hostage here. CATHOLIC CATHEDRAL The Roman Catholic Cathedral, located on the main road, is one of the most impressive buildings in Arad; a unique piece of architecture even in Central European terms. The building was erected in neoRenaissance style, between 1902 and 1904. The church has an organ with an extraordinary resonance. The bells were cast in the Hönig workshops of Arad, famous across Central Europe for the masterpieces they created. RAILWAY STATION Arad Railway Station was built at the end of the 19th century according to the plans of the Hungarian architect Lajos Szántay. This commanding yellow-brick building contains secessionist style ornaments. The building was severely damaged in a 1944 bombing, but has since been restored to its original state.

ACTIVITIES

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TATTOOS FOR CEAUªESCU NEW FASHION TALENT A lina L atan, one of the youngest fashion designers in Romania, has managed to gain the respect of her more experienced colleagues in a very short time, as well as catching the eye of foreign personalities. Alina develops each collection with her personal universe in mind, and attempts to work each piece in a characteristic style, without neglecting the overall essence and the quality of details. As a child, Alina Latan was passionate about the clothes and high-heel shoes of her mother, and around the age of 3 she discovered a passion for drawing. In an interview to a Romanian online publication, Alina declared another special passion, that of drawing make-ups and tattoos, especially on Nicolae Ceauºescu’s photos.

THE MEETING WITH GALLIANO Later on, while she was attending the courses of the Fine Arts High School in Timisoara, she started to acquire an advanced knowledge of fashion and art history, which she consolidated during her studies at the Faculty of Fine Arts in Timiºoara, during a 6-month scholarship in Paris and then in the course of 2 years of master studies. Alina declared to the same online publication that ‘you only acquire basic notions at school, but experience comes with time, based on the information you manage to accumulate’. Following from this philosophy, during her first year of university, Alina embarked on a collaboration with a Fashion Consulting company in Düsseldorf. Three years later, she was able to reap the benefits of her collaboration, savouring moments and events she

Alina Latan: ‘Endless’

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had long awated, such as her meeting with John Galliano and Vogue Paris magazine, the cooperation with Ovidiu Buta and Irina Schrotter and her internship at Rick Owens, Paris. Alina admires and enjoys watching the evolution and creations of designers like: Gareth Pugh, Dries Van Noten, Undercover, Preen, Sophia Kokosalak, and the big French fashion houses. She admires Karl Lagerfeld’s work for Chanel, Fendi, some creations bearing the signature of Marc Jacobs, Ann Demeulemeester, Stella MCartney, Ricardo Tisci and Olivier Theyskens. Two years ago, Alina rediscovered the beauty of Balenciaga and Lanvin products. Passionate about her work, creative, present in an always changing environment, Alina is, after all, a woman, and she always has the following items in her purse: a small notebook for sketches, some fabric samples, her mobile phone and headphones, a book or a magazine, a scarf, a stamp, a bottle of perfume and a homeopathic product.

‘ENDLESS’ IS A STATE OF MIND, AN ATTEMPT TO UNDERSTAND HE FASHION PHENOMENON IN THE PRESENT, TO CATCH THE TRANSFORMATION OF REALITY

THE ‘ENDLESS’ STATE OF MIND One of the most appreciated collections bearing the signature of Alina Latan is ‘Endless’. Some people who not only had the chance, but were curious enough to participate in this presentation declared that the pieces in the collection are a sequence of possible interpretations and transformations of forms and concepts. Moreover, many believe that through this collection, Alina highlights the elements of convergence between art and fashion, society and denial, tradition and modernity. Alina has chosen this name for her collection in order to suggest an ampler and more complex manifestation, going beyond the fashion phenomenon. ‘At that time, I felt it was the best description of what I was feeling back then and what I feel right now for my brand. “Endless” is meant to be more than a style, an attitude or a character. It’s a state of mind, an attempt to understand the fashion phenomenon in the present, to catch the transformation of reality and reinvent it continuously’, Alina Latan told a women’s publication. The fashion designer’s plans continue with new projects. She is planning a perfume, ‘endless 26 gold fragrance’, 100% made in Versailles. For this ambitious project, Alina benefited from the support of Octavian Coifan, who is a member of the French Perfumers’ Association. As for the perfume itself, its presentation and fragrance, Alina declares: ‘The effect of the perfume and the requirements in this respect made me resolve to break the intimatepublic barrier and bring this ‘strictly personal object’ into the public space, as an attempt to continue the ‘endless’ spirit – breaking down the limits. This is a perfume based on Indian tuberose, orange flower, jasmine from Egypt and Florentine iris’, Alina told a publication in Bucharest.


UPCOMING FASHION EVENTS IN ROMANIA Although it is getting colder and we have started to put on several ‘layers’ of clothing, a lot of fashion, beauty and style events will be organized soon. Whether we are speaking about the presentation of the collections for the 2008 spring-summer season or simple fashion launches, important fashion events will take place in the following months in Bucharest. During this period, the most en vogue fashion designers will unveil their collections for the 2008 spring-summer season. Accordingly, the series of presentations will start with the collections Dork and Loona de Krystal. The event is scheduled to take place on the 27th of November, 8:00 PM, at the Parliament Palace. The 2008 spring-summer collection bearing the signature of Lena Criveanu will be presented on November 28th. This event will take place at Fratelli Studios 2, starting at 7.30 PM. Access to the presentation is by invitation only. One of the most eagerly-awaited events, fully dedicated to fashion designers and ‘consumers’, is the Bucharest Fashion Week, which is due to take place between November 23rd and 29 th 2007. Romaniþa Iovan, Zina Dumitrescu, Laura Olteanu, Cãtãlin Botezatu, Rita Mureºan and Mihai Albu are among the designers who will present their latest collections. This event forms part of the international circuit of the events of this genre, such as the Milan Fashion Week, the Paris Fashion Week, and the London Fashion Week, and will last for seven days, in three different locations: Grand Hotel Rin, World Trade Center Sofi tel and Romaero Bãneasa. This festival which is a celebration of fashion and style will be broadcast on Fashion TV in over 140 countries.

BUCHAREST FASHION WEEK IS BROADCAST IN OVER 140 COUNTRIES

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MEET US AT THE MAPIC THREE JOURNALISTS HAVE THEIR SAY CRISTI MOGA ZIARUL FINANCIAR At events like MAPIC, it is important for the media to meet international specialists, to observe trends from other real estate markets – to make connections between these markets and find new investors interested in starting projects in Romania. Until last year, the number of Romanian journalists at these kinds of events was minimal but since 2006, when Romania became more attractive to foreign investors, the number has increased. I hope to make some new contacts and gain a better view about the local market and real estate in general. I hope to see some new projects and pick up some interesting news.

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LIDIA IONITA COTIDIANUL These kinds of events allow the exposure of the journalist to the actual trends from this professional area, which leads to a complex process of education and improvement. MAPIC offers the journalist the opportunity to undesrtand the Romanian real estate market in terms of the European markets. The opportunity of communication with leading company members and, as a result, the ability to obtain insights into strategic decisions relevant to the market is a major incentive to participation.

LOREDANA SÃNDULESCU BIZ This is my first press trip to MAPIC and I expect it to be an interesting experience given the number of participants, exhibitors and the range of projects to be presented there. From a journalist’s perspective, one of the best aspects of a press trip is the chance to meet and connect with other people, especially from companies and PR agencies with whom we usually keep in touch by impersonal means such as e-mails or via phone. Publications are always on the look out for news, articles and stories to write about. Therefore attending a press trip, besides having the chance to acquire press materials (photos, booklets or documentary CDs), the journalist gets the change to form his or her own opinion about the event to be covered. An article written from a personal perspective is always viewed with greater credibility by the readers.


Let there be style! in association with Dawnay, Day PanTerra Limited

Atrium Centers introduces a new style of shopping and entertainment centers in major cities of Romania. Through its owners, the company has a remarkable experience in the retail segment of the region reputed to be uncompromising in matters of quality. Malls are always located at easily accessible and highly visible central sites of major cities. The team guarantees highest quality of design and construction works, as well as the best tenant mix of national and international fashion and entertainment brands for each location. Atrium Centers was established by Dawnay, Day PanTerra, in partnership with experts of the Central and Eastern European market.

www.atriumcenters.com

Atrium Center Arad

Atrium Center Cluj

City center location (on Bd. Aurel Vlaicu) 27,700 sq m GLA 1000 parking spaces Date of handover: Q4 2008

City center location (on Bd. 21 Decembrie 1989) Shopping mall: 31,500 sq m GLA ‘A’ class offices: 11,000 sq m GLA 4 star hotel: 180 rooms 900 parking spaces Date of handover: Q1 2009

Atrium Center Satu Mare

Atrium Center Baia Mare

City center location (at the corner of Bd. Henri Coanda and Str. Corvinilor) 27,000 sq m GLA 750 parking spaces Date of handover: 2009

Located on the major road of Bd. Independentei 35,000 sq m GLA 1000 parking spaces Date of handover: 2009

Atrium Centers. We create style.



Atrium Centers Brand Magazine 2007