Portland Trust Bought 4 Hectares of Land for Office Development in Bucharest

The real estate development company Portland Trust, founded by the British businessman Robert Neale, bought four hectares of land in Bucharest in Pipera area, planning to develop a new office project estimated at 100-150 million euro. The land plot was bought from the Italian group Nusco in a deal estimated at about 20 million euro (average price of 500 euro/ square meter). Robert Neale now plans to start the works on this project, named Oregon Park, by the end of this year.

According to Neale’s statements, the project will have three buildings with six floors each and an overall lease surface of 70,000 square meters. The works on the first two buildings (45,000 square meters) should start by the end of this year and should be completed at the middle of 2016.

The Best Semester for the Bucharest Office Market

H1 2014 was the best semester for the Bucharest Office Market in the past six years. In the first six months of this year have been leased 108,000 square meters of office spaces in Bucharest – the largest volume of rentals in one semester since 2008, according to a report from the real estate consultancy company DTZ Echinox. The demand for office spaces has increased gradually in the first part of this year, and this trend will continue in the following quarters, declared Madalina Cojocaru, head of office department of DTZ.

“The tenants continue to prefer to relocate into existing buildings or in buildings that will be delivered within 6 to 12 months. This behavior is encouraged by the occupancy costs and by the quality of the new office spaces delivered. We identify in the market big companies looking for Read more

Berlin Office Ensemble Sold to Real IS Investment

Dinu Patriciu businessman has sold a Berlin office ensemble to the German investments company Real IS Investment. The Romanian businessman bought the building in 2006 – 2007. The project, known under the name Mosse-Zentrum, is located in the central area of Berlin and was bought from RE Mosse Zentrum Srl, a subsidiary owned by the real estate investments vehicle Dinu Patriciu Global Properties, according to the representatives of Real IS Investment. Patriciu bought the project as two separate entities, one in 2006 from an investor, and the second one in 2007, from a real estate developer. The ensemble has a lease surface of 38,000 square meters. In the last few years, RE Mosse Zentrum has extended the lease contracts with its main tenants and signed new long-term lease contracts with new tenants. Among the tenants are the facility management company Dussmann Service Deutschland, Kursana Residenzen GmbH, Thales and Visual Meta.

Orange Romania leases 19,000 SQM in Green Court

The mobile phone carrier Orange Romania, with annual businesses of almost one billion euro and some 3,000 employees in Romania, has rented 13,700 square meters of offices in the office building Green Court, developed by the Swedish group Skanska in the north of Bucharest, across the street from Promenada mall and the future headquarter of the rivals from Vodafone. Orange leased 8 of the 12 floors of the building with an overall surface of 19,500 square meters, which has reached at a lease degree of 90% after this transaction. While “waiting” for the future anchor-tenant, Skanska Read more

Market Research – Office Rents Might Increase

The office rents might register some favorable changes for owners and bad for tenants, especially those who are still searching for office spaces. The companies from this segment are expecting an increase of the rents on the Romanian market, which will be felt in the near future, considering that the demand is exceeding the offer of office spaces. “Partially because of the strong pre-lease activity on the office segment, the tenants trust index is at the highest level registered compared to the same period of 2011, while the demand for office spaces remains positive and significantly larger compared to the expected growth in the overall office spaces available in the near future. The gap between the two has Read more

Ovidiu Sandor and NEPI Inaugurated the Largest Office Building from Cluj

The South-African investments fund NEPI and the businessman Ovidiu Sandor from Timisoara have inaugurated the first stage of the most important office ensemble developed outside Bucharest, The Office, with a lease surface of 19,000 square meters from a total of 54,000 square meters. At the same time will start the second stage of the project, with a lease surface of 18,000 square meters, which will be completed in the second half of 2015. So far, the investment reached at 26 million euro – 13 million euro from NEPI and 13 million euro from Ovidiu Sandor. The investment in the second stage of the office ensemble will reach at 17-18 million euro, according to Sandor. This inauguration takes Read more

Joint-Venture Wanted for New Office Developments

The Czech company S Group Holding wants to make a joint-venture for the next office project it is planning, after the company has inaugurated its first such project from Romania, declared yesterday Vladimira Novakova, managing director of Green Gate. “Green Gate office building is an investment of 57.5 million euro, which we started in September 2012, after Teamnet group pre-leased about a third of the offices. In the autumn of this year, we will Read more

Focus on Distressed Offices from Bucharest

Globalworth, the investments vehicle created last year by the businessman Ioannis Papalekas, will continue to buy real estate projects in the next 12-18 months, targeting especially distressed office projects from Bucharest, declared Dimitrios Raptis, deputy CEO of the company. “We are focused on commercial properties, especially distressed office projects, to which we want to improve the performances. We have many projects in acquisition process and usually we are interested in anything that makes sense, and our target is to create products for investors. We make the acquisition decision very fast and we plan in the next 12-18 months to buy projects. We are focused on cash-flow, so we are preparing the projects we buy, through asset management, for the moment when the strong investors will return to Romania, so we can have what to offer them”, he declared in a press conference. Dimitrios Raptis added that the acquisitions will target also logistic and industrial projects, but the office segment remains the business of choice for Globalworth. “In order to be successful, we must Read more

S Group completed Green Gate Office Building from Bucharest

The Czech company S Group Holding has completed the office building Green Gate next to Chirigiu Square from Bucharest – the largest office project to be delivered this year – with a leaseable area of 31,000 square meters, after an investment of 55 million euro. The construction of the building started in August 2012 and the general contractor was Bog’Art Company. The building is about 70% leased and the most important tenant is TeamNet Company, who rented four of the 11 floors of the building. The project is financed by PPF Bank from the Czech Republic, who granted a loan of 39 million euro. 
In Bucharest, the developers have completed in Q1 2014 office buildings with an overall surface of 23,400 square meters, and by the end of the year will be delivered 102,000 square meters – a quarter of the office spaces to be delivered this year represent project conversions. Overall, in 2014 are expected 125,000 square meters of new office spaces, representing an increase of 5% compared to the year 2013, and 55% of this surface is pre-leased.

New Office Project in Bucharest on Track

The Swedish group Skanska, with annual businesses of about 15 billion euro, has built 80% of the first building of the office project Green Court in the north of Bucharest, but the occupancy degree of the space is only 16%, and Schneider Electric is the only tenant officially announced so far. Despite this, the Swedish want to complete by the end of this year the construction of the building of 19,500 square meters and hope that by that time, they will lease all the spaces in this building. “The number of potential tenants with whom we have initiated talks Read more