Bogdan Macarie, Development Director of TriGranit Development Corporation: TriGranit and MAPIC 20th anniversary
TriGranit, one of the largest regional real estate investment, development, and management companies in the CEE region, celebrated 20 years of excellence with a party at MAPIC. The celebration was held on the first day of the exhibition, on the 19th of November in the afternoon. We asked Mr. Macarie, Development Director of TriGranit Development Corporation to comment on TriGranit’s success, MAPIC, SEE region and retail project development.
How would you mark SEE region when it comes to further development of the retail sector?
The market is more and more packed, it is rather difficult to find good development oportunities, and I am not talking about location only, but average rents, exit yields, construction costs. I think we can talk about two market categories: the mature ones, where all the good locations were already taken and the markets which are less developed, where the exit possibilities are significantly reduced. And is not only that, if we talk about the second category, it might be that they are not on our tenants' radar, both for retail and office, the exit yields are not very encouraging either.
Related to ex Yu countries, which today are independent states and individual markets, what is your opinion on the visit from ex Yu countries this year?
If we follow the same pattern, some of the ex YU countries would fall under the first group, like Slovenia and Croatia. Some others, like Macedonia or Serbia have still a lot of room for development.
In your opinion, what is the key information or advantage that every project in the retail sector should have, so that it can be characterized as good enough for the investment implementation to be started? a. Is it the number of tenants? b. Is it the position of the retail project in comparison to the surrounding environment? c. Is it all simply connected to an existing market? d. Anything else?
It is a combination of all these. First of all, a project needs a good location and the size of the project should give the possibility to compete. Then the market itself should be attractive for the potential tenants, it should be on their list when it comes about their expansion plans.
All these aspects and not only these, influence the profitability of the project, which should ensure the proper return for the investor.
Source: REBEC/ AG Real Estate
What are your impressions of this year’s MAPIC and its grand anniversary
Mapic was very successful this year, obviously it became one of the most important events for our industry, placing together the best players in real estate. It is a very good opportunity to meet your clients and your partners or to attract some new business.
Do you think that MAPIC in Europe has any competition at all, and if yes, based on what criteria?
Of course MAPIC is not the only event of this kind, for sure is the biggest, but there some other important events as well. The first one coming to my mind is Expo Real in Munich.
What/when was TriGranit’s most memorable performance/greatest success at MAPIC?
I should say that we are one of the traditional exhibitors in MAPIC. We are here every year with our own stand. Many of our important leasing deals were closed here in MAPIC. I think the fair it is a good inspiration for us.
Mapic was very successful this year, obviously it became one of the most important events for our industry, placing together the best players in real estate. It is a very good opportunity to meet your clients and your partners or to attract some new business.
Do you think that MAPIC in Europe has any competition at all, and if yes, based on what criteria?
Of course MAPIC is not the only event of this kind, for sure is the biggest, but there some other important events as well. The first one coming to my mind is Expo Real in Munich.
What/when was TriGranit’s most memorable performance/greatest success at MAPIC?
I should say that we are one of the traditional exhibitors in MAPIC. We are here every year with our own stand. Many of our important leasing deals were closed here in MAPIC. I think the fair it is a good inspiration for us.
How would you mark SEE region when it comes to further development of the retail sector?
The market is more and more packed, it is rather difficult to find good development oportunities, and I am not talking about location only, but average rents, exit yields, construction costs. I think we can talk about two market categories: the mature ones, where all the good locations were already taken and the markets which are less developed, where the exit possibilities are significantly reduced. And is not only that, if we talk about the second category, it might be that they are not on our tenants' radar, both for retail and office, the exit yields are not very encouraging either.
Related to ex Yu countries, which today are independent states and individual markets, what is your opinion on the visit from ex Yu countries this year?
If we follow the same pattern, some of the ex YU countries would fall under the first group, like Slovenia and Croatia. Some others, like Macedonia or Serbia have still a lot of room for development.
In your opinion, what should be done in order to increase those numbers and the quality coming from these markets? How to encourage the participants – developers form those territories to decide to participate?
It is always about the profitability a market is able to provide to an investor/developer. But in the same time, one market becomes mature due to the interest of the investors/developer. So it is kind of a circle, which somebody needs to breake. Serbia is a good example. Everybody says the market is underdeveloped, that one can not find too many institutional projects, but in the same time very few investors look at it.
TriGranit already had several investment attempts in Serbia. Do you think that in the upcoming period Serbia could be the next key destination for the development of the retail sector and a bigger increase of the investment possibilities in the retail sector?
Serbia will always be an interesting market for us. Is just that we are looking for the good opportunity to start developing there.
It is always about the profitability a market is able to provide to an investor/developer. But in the same time, one market becomes mature due to the interest of the investors/developer. So it is kind of a circle, which somebody needs to breake. Serbia is a good example. Everybody says the market is underdeveloped, that one can not find too many institutional projects, but in the same time very few investors look at it.
TriGranit already had several investment attempts in Serbia. Do you think that in the upcoming period Serbia could be the next key destination for the development of the retail sector and a bigger increase of the investment possibilities in the retail sector?
Serbia will always be an interesting market for us. Is just that we are looking for the good opportunity to start developing there.
In your opinion, what is the key information or advantage that every project in the retail sector should have, so that it can be characterized as good enough for the investment implementation to be started? a. Is it the number of tenants? b. Is it the position of the retail project in comparison to the surrounding environment? c. Is it all simply connected to an existing market? d. Anything else?
It is a combination of all these. First of all, a project needs a good location and the size of the project should give the possibility to compete. Then the market itself should be attractive for the potential tenants, it should be on their list when it comes about their expansion plans.
All these aspects and not only these, influence the profitability of the project, which should ensure the proper return for the investor.
Source: REBEC/ AG Real Estate
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