In an interview with CIJ Europe, Alina Necula talked about Oregon Park, a premium A-class office project owned by the Lion’s Head investment fund. The project includes more than 70,000 sqm of modern office spaces spread across three buildings delivered in 2016 and 2019 and, in Alina’s own words, boasts “12,000 sqm of green areas”.
Oregon Park, an office project owned by the Lion’s Head investment fund, located in the Floreasca – Barbu Vacarescu office submarket, was recently distinguished with the Well Health & Safety certification for the implementation of measures that ensure a healthy work environment for employees.
Necula told CIJ Europe that around 5,000 people were working in the three buildings in Oregon Park in the period before the COVID pandemic. At the moment, around 65 to 75% of this number are coming to the office. “It’s a very lively project”, she says. “The average age is low, between 25 to 35 for most of our tenants. They enjoy coming to the office, meeting people, staying here. The setup is three days per week for most of the tenants, Tuesday, Wednesday and Thursday, [and] Monday and Friday is work from home.” Alina thinks that the hybrid work situation is still due to stabilize in 2024. She says that although some of the fund’s tenants were already implementing work from home days even before the pandemic, most tenants are still analyzing data to draw conclusions regarding their needs of space for the future.
The Country Manager went on to state that renewals in the Oregon Park project were going very well. When asked why she thought that was the case, she mentioned two main reasons: “One, it’s the project, -it is a well – established, yet really up – to – date project, permanently approaching our tenants ‘changing needs. It’s a very good project in terms of technical specifications. In terms of energy consumption, we are very ESG compliant. We are quite cost-oriented and optimizing everything. We have all the technical instruments to do that. And secondly, it’s the way we manage the process, the flexibility that we show, and the fact that we fully understand [the tenants’] needs. So we haven’t been blocked in our numbers, we take them into consideration.”
Speaking about the mix of tenants in the project, Necula said that “it is pretty interesting. We have very big tenants, in terms of surfaces and also in terms of names. As we call it, blue chip tenants, mainly international tenants.” To exemplify, she named Oracle, as the largest tenant leasing around 30% of the project, and Deloitte, with its Technology Division and its Shared Services Division, coming in at around 20%. Amongst other tenants, Necula mentions BNP Paribas Group, Gewiss, Cofco and Euler Hermes.
Later in the conversation, Necula stated that, although the occupancy of the Lions’ Head project was now complete, there would be some small free floorspace next year, which the company was already marketing. While demand on the market is still “oscilating”, Alina expressed her optimistic views over the future: “[Demand] increased in the last two quarters. And for next year, I’m pretty sure it will increase. A lot of tenants will analyse the possibility of getting out from where they are, going to a newer or a better building. Oregon Park has already entered this game and we also have newcomers. Rental prices [will increase] as well, mainly due to inflation.”
Speaking about types of tenants that she targeted for the space opening up in the project, Necula admitted companies’ cultures and views on office destinations contrast. What is for sure, we try to keep the same profile mix, they have to be international companies that are blue chip companies, and they have to align with our values, to be very ESG oriented. There will be an increasing trend to companies searching for a value-add experience that nurtures productivity, collaboration and wellbeing and this is the business mantra Lion’s Head is eager to embrace”.
