Real 4 You, an Austrian-based group which is co-developing with other foreign investors the MiniMax Discount store network, intends to build several discount shopping centres on the Romanian market, with investments worth 10-25m euros per unit.
Real 4 You wants to expand its domestic operations by entering the market of discount-type shopping centres. So far, the largest planned project is a shopping centre with a lettable area of 100,000 square metres and offices with 20,000 square metres, in the centre of Bucharest. The project will be developed on a 72,000 square metre plot of land, which is owned by the Austrian investors.
"We have secured locations in Focsani, Braila, Satu Mare and Giurgiu for the development of some shopping centres and some big box-type stores with a lettable area of between 10,000 and 25,000 square metres," stated representatives of Real 4 You group. According to Reiner Exel, the general manager of the Minimax Discount network, the investors currently own around 7 plots of land for the development of these commercial projects, which could also include MiniMax stores.
The Austrian group also wants to bring the Family Center network of small shopping centres onto the Romanian market.
Four investors are developing the MiniMax network including Reiner Exel and Christian Rimpf and Klaus Riederer, who are both Austrian and founded the Real 4 You group in 1995.
"We currently have 44 locations for the expansion of the MiniMax network, with 50 earmarked for the end of the year. Our target for next year is to open 20 outlets, but hitting this mark depends on our partners and the local authorities from which we want to lease some properties," stated Exel.
MiniMax also wants to enter Bucharest's retail market and plans to open at least one store in each sector.
The MiniMax network currently includes 10 stores, but is expected to reach 15 by yearend. In addition, the company also intends to enter the Moldavian market next year. "Our 14,000-square metre warehouse on the Bucharest-Pitesti highway covers distribution to 40 outlets. We are currently looking at several locations for a second warehouse near Turda, which could support network expansion in Transylvania," added Exel. Exel estimates investments in the second logistic centre will be worth 8 to 10m euros.
The network could reach 100 stores within the next 5-7 years, with investments worth between 0.75 and 1m euros per store.
MiniMax Discount derived turnover worth 13.8m euros in 2006, with 4 stores at the end of the year. According to Exel, the company derived most of its profit (around 1.2m euros) by letting out some warehouse space to other retailers. The general manager expects commercial activities to break even when around 30 stores have been opened.
Real 4 You
Is developing the MiniMax Discount store network with other foreign investors
Intends to build several discount shopping centres on the Romanian market, with investments worth 10-25m euros per store
So far, the largest project is a shopping centre with a lettable area of 100,000 square metres and 20,000-sqm of office space in the centre of Bucharest
Intends to launch the Family Center network of small shopping centres onto the Romanian market
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