NEPI Rockcastle is pressing ahead with its most ambitious single project to date, a €282m mixed-use extension of Promenada Mall in northern Bucharest that will add 55,000 m² of gross leasable area encompassing new retail, a 200-room 4-star business hotel and approximately 14,000 m² of office space, with completion targeted for early 2027.
Marek Noetzel, COO of NEPI Rockcastle, describes the project as "creating a dynamic new expanded retail, work and leisure destination for Bucharest by combining the retail offering with much needed sustainable modern office space and a four-star international business hotel, for which we are currently selecting an operator." The hotel, to be positioned across the 5th, 6th and 7th floors of the new 11-storey building, will be operated by an established international chain, with the operator selection still ongoing, a detail that represents an immediate opportunity for global hospitality brands seeking a prime foothold in one of CEE's fastest-growing urban markets.
The extension is the largest single retail development currently underway across all Central and Eastern European markets. The entertainment anchor will be a Cinema City-operated multiplex, positioned as the most technologically advanced cinema in Romania and the only one with reclining seats. Gym operator World Class will also relocate within the project, tripling its current floor space and adding a swimming pool. A state-of-the-art theatre designed to match the cultural standard of venues in London or New York, along with a 2,000 m² playground area, round out the leisure programme.
Demand for space is already strong, with terms agreed for 68% of the total extended area. Zara and Peek & Cloppenburg are among the confirmed tenants, both seizing the opportunity to establish new flagship concept stores by transferring from their existing premises within the current mall. The project involved excavating the deepest building basement in CEE, at 26 metres, to accommodate 2,400 parking spaces across six levels, a significant engineering challenge given a geological profile of sand, clay and gravel.
For investors and developers, the numbers behind the project tell a compelling story that has received limited attention: upon completion, the value of the entire Promenada complex is expected to reach nearly €500m, against a current valuation of €232m, representing more than a doubling of asset value. Romania accounts for 35% of NEPI Rockcastle's global portfolio, which exceeds €8bn, and the Floreasca-Barbu Vac?rescu submarket, home to landmark assets including Sky Tower and Globalworth Tower, continues to attract the highest commercial rents in the country, with limited competing mixed-use supply in the pipeline.
The Promenada Mall extension is the largest single project within NEPI Rockcastle's estimated €1bn pipeline of developments, extensions and refurbishments across its portfolio over the next four years, which the company views as a vote of confidence in CEE economies and retail markets it believes will continue to outperform Western European markets for the foreseeable future.
People
- Marek Noetzel, COO, NEPI Rockcastle
Companies
- NEPI Rockcastle, developer and owner of Promenada Mall, Bucharest
- Promenada Mall Bucharest, mixed-use retail, hotel and office development, Bucharest, Romania
- Cinema City, cinema operator, anchor entertainment tenant
- World Class, gym operator, relocating to the extension with expanded fitness and swimming facilities
- Zara, fashion retailer, confirmed tenant with new flagship concept store
- Peek & Cloppenburg, fashion retailer, confirmed tenant with new flagship concept store
- Sky Tower, landmark office building, Floreasca-Barbu Vac?rescu district, Bucharest
- Globalworth, owner of Globalworth Tower, Floreasca-Barbu Vac?rescu district, Bucharest
PROMENADA MALL, BUCHAREST Image credit: NEPI Rockcastle
