Cushman & Wakefield Echinox: Leroy Merlin leases 21,000 sqm of retail spaces in Bucharest

Leroy Merlin, the second-largest DIY retailer in Romania by revenue, leased 2 retail spaces in Bucharest with a combined area of 21,000 sqm from the Supernova Group, through a transaction brokered by the Cushman & Wakefield Echinox real estate consultancy company.

These spaces of 8,300 sqm and 13,000 sqm respectively are located within the Supernova Lujerului and Supernova Pantelimon commercial galleries.

Supernova Lujerului and Supernova Pantelimon are part of the former Cora portfolio of 6 properties which Supernova acquired in 2021 following a sale and leaseback transaction, properties which have either been or are due to be modernized and rebranded.

Bogdan Marcu, Partner Capital Markets at Cushman & Wakefield Echinox: “We are delighted to have assisted Supernova Group in this complex leasing transaction concluded in record time. These 2 units, strategically positioned in some of the most densely populated areas in Bucharest, will integrate very well in both Leroy Merlin’s existing portfolio in the city and also in the tenant mix Supernova aims to provide to its customers by reshaping the 2 shopping galleries. The DIY segment has been one of the retail market’s top performers in recent years, showing resilience in challenging conditions such as high inflation, declining consumption and increasing interest rates. Furthermore, we believe the local DIY market will continue to expand, thus creating the premises for new investments.”

Supernova Group is an international company focusing on the development and management of commercial real estate properties in Austria, Slovenia, Croatia, Romania and Slovakia. The group’s current portfolio comprises of over 110 properties with a gross value of €2.2 billion. Supernova entered the Romanian market in November 2020 by acquiring the Jupiter City shopping center in Pitesti, which has since been rebranded and completely refurbished. Additionally, the Supernova Group has also purchased the former Cora portfolio in 2021, consisting of 6 shopping centers located in Bucharest (three locations), Constanta, Bacau, and Drobeta Turnu Severin.

Markus Pinggera, Managing Director at Supernova Group: “Supernova Group is thrilled to welcome Leroy Merlin as a strong tenant partner in our shopping centers. Their presence will undoubtedly enrich our shopping centers, offering added value to our portfolio and our customers. Considering that Supernova Lujerului will also undergo renovations and modernizations in the coming period, we expect that the arrival of such a valuable partner like Leroy Merlin will translate into a more powerful shopping center which will become one of the most attractive destinations in the area. We extend our gratitude to our brokerage partner, Cushman & Wakefield Echinox, for their instrumental role in bringing this transaction and project to life.”

Leroy Merlin currently operates four stores in Bucharest, the latest one being opened in 2020. There are 21 Leroy Merlin stores in Romania, with more 3,000 employees in 15 cities.

Mathieu Bauduin, CEO Leroy Merlin Romania: “The strong and trust-based partnership between Leroy Merlin and Cushman & Wakefield Echinox is underlined by the four transactions completed so far (Brasov Astra, Pitesti, Lujerului and Pantelimon), confirming the commitment of both companies to a sustainable and efficient collaboration aimed at meeting the needs of Romania’s residents. By working with Supernova and by opening 2 new stores in Bucharest, we are strengthening our business model: investing in people, expanding the network, digitalization and sustainability. Even though Romanians have been more careful with their spending in recent years, they remain attached to their homes and invest in them. Therefore, we promise to ease the access of Bucharest’s inhabitants to products regardless of their budget, through our strategy of „Small prices every day” – a strategy in which we constantly monitor prices, adjust and calibrate them immediately when suppliers lower the purchasing costs.”