One United Properties for Business Magazin: what will happen to investment returns?


In a recent Business Magazin analysis, Victor Căpitanu, One United Properties co-founder estimates that investment returns will continue to shrink over the next two years, in the context of lower bank interest rates, which will cause large investors to choose investments in office projects.

"We estimate that yields will continue to shrink because we will have trillions of euros and negative interest rates on the world market", Mr. Căpitanu explains. Our company is currently working on six sites - One Herăstrău Towers (at the intersection between Av. Şerbănescu and Nicolae Caramfil), which will be ready this year, Neo Timpuri Noi - scheduled for Q1/2021, Neo Mamaia, which will be ready in Q3/2020, One Verdi Park - the mixed-use project on Barbu Văcărescu, where the work on the foundation has begun. The sixth project is One Cotroceni Park, where work has also begun on the foundation.

Mr. Căpitanu pointed out that One United Properties currently has a low degree of indebtedness and already has the funds to continue constructions. "What we plan to deliver this year is 80% sold, and therefore it is easy to build. Sales are also moving forward. Yes, amid the epidemic there is a slowdown, but last week and two weeks ago we signed new contracts on residential, at a slower pace. What happens during this period is quite similar to what happened last year with ordinance 114, or two years ago, when we had a lot of snow in winter."

Full analysis here.


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