The investment marks the entrance of General Electric onto the Romanian real estate market. The decision to invest in the Romanian commercial sector was made due to higher demand for quality industrial warehousing, according to company officials.
The joint venture of the three entities will initially manage seven warehouses totaling 315,000 square meters for logistics and A class distribution activities in major Romanian cities, including Bucharest, Timisoara, Brasov, Cluj-Napoca and Constanta. The warehouses will have access to highways, and some of them will be located near airports.
"These projects are part of the first customized portfolio of logistic warehouses in Romania. At present, the supply on this market is low. The fact that Romania has recently joined the European Union is expected to continue to improve individual and industrial demand, which, in turn, will generate a higher need for warehouses," said Karim Habra, Managing Director of GE Real Estate for Central and Eastern Europe.
Habra added that Romania is GE's eighth market in the region and the company is hoping to consolidate its presence by signing partnerships with local players, such as Helios Phoenix. Phoenix Real Estate has already developed a total area of over 60,000 sqm of warehouses and logistics in Romania.
