NEPI Rockcastle’s €136m Promenada Craiova development in Romania officially opens its doors. The retail scheme has attracted a host of international brands and is the largest retail development by size and investment value opening in Central and Eastern Europe in 2023, according to CBRE.
Rudiger Dany, NEPI Rockcastle’s CEO, said: “The multitude of international retailers opening at NEPI Rockcastle’s Promenada Craiova is indicative of the market trends we are seeing across our portfolio of shopping centres in Central and Eastern Europe. International retailers increasingly recognise that the pace of economic and retail market growth and rise in household incomes across the region, combined with lower operating costs and higher margins, present a far more compelling opportunity than what is generally on offer in more mature and saturated Western European retail markets. This is helping drive NEPI Rockcastle’s strong growth and the continued outperformance of CEE retail real estate we see across our business.”
Inditex has selected Craiova for the launch of its fast-growing Lefties value retail brand in CEE markets, the first venture for the store chain outside Spain.
The overall retail scheme has a total GLA of c. 80,000m2, larger than originally planned due to strong retailer demand for space exceeding the initial projected supply. The scheme comprises a 53,300m2 GLA shopping centre and a 10,400m2 GLA retail park, both owned by NEPI Rockcastle. In addition, the retail scheme incorporates a 16,000m2 GLA DIY store, owned by Dedeman. The shopping centre is 99.9% let and offers over 100 stores, among them international brands such as Bershka, Calvin Klein, Enzo Bertini, Mohito, Nike, Peek & Cloppenburg, Stradivarius, Tommy Hilfiger, Under Armour and Zara, as well as a Cineplexx cinema. It also boasts Craiova’s largest outdoor panoramic terrace, which is surrounded by restaurants and cafes. The outlet also includes parking for over 2,800 cars, and drive-through food outlets such as KFC and Burger King.
The retail park has leases agreed and signed for 85% of its space. Its retailer line-up includes Adidas Outlet, Altex, Flanco, Hervis, Nurvil, Pepco and Sportisimo.
The development’s photovoltaic plant design capacity is about 6 MWp of energy, installed mainly over the parking area, generating around 70% of the shopping centre and its tenants’ requirements. It is the first time NEPI Rockcastle has integrated renewable energy production over the parking areas of one of its developments. The PV project will start operating at the beginning of 2024. This installation is part of a larger programme across Romania where the Group’s portfolio is being fitted with photovoltaic panels, which will result in NEPI Rockcastle producing sufficient green energy on site to satisfy 25-30% of its energy consumption needs.
NEPI Rockcastle's Group Asset Director, Marius Barbu, said: "Promenada Craiova demonstrates one of the fundamentals of the CEE retail markets, where ultra-modern and attractive shopping centres play a central role in local economies and communities, mainly because shopping high streets didn’t develop in the post-war socialist era in these countries as they did in the West.”
