Deutsche Bank pays more than 100 million euros for tallest office building in Bucharest

The real estate division of German group Deutsche Bank last week signed the contract to buy the biggest office building in Bucharest, BOC, which is located in Pipera, in a deal put at more than 100 million euros.
The building, which has been recently completed, has a 57,000 square metre lettable area, about twice larger than Charles de Gaulle Plaza and America House, and was mostly rented, with companies due to move in their new offices at the end of the year, consultants involved in this deal say.
The building is part of the UpGround project, developed by a series of British and Greek businessmen, represented by Ioannis Papalekas.
The project also includes an office building completed last year and two residential buildings currently under construction close to the Dimitrie Pompei Boulevard in northern Bucharest. All these buildings should become the property of Deutsche Bank upon completion, for a total price of some 340 million euros, as part of a deal signed in 2008.
"Everybody was sceptical about this deal, but on Friday we signed for the second closing, for the second office building in the project. There is one more stage to go, namely the residential buildings, which should be completed next year," said Ioana Niculeasa, partner of Nestor Nestor Diculescu Kingston Petersen (NNDKP) law firm, which assisted Deutsche Bank in this deal.
Deutsche Bank went ahead with this acquisition even though rents on the office space market are going down and about 100,000 square metres of office space are vacant. Market sources say that some of the future tenants of the building that Deutsche Bank bought include Banca Romaneasca and GfK market research company.
The sellers were assisted by Biris Goran, while RTPR - Allen & Overy law firm assisted National Bank of Greece London and Bank of Cyprus, which financed the acquisition. The two banks financed both Deutsche Bank in buying the buildings and the developers in building the project, existing data reveal.
"I believe this is the most expensive office building sold in Bucharest (the most expensive building sold so far is America House for 120 million euros i.e.), with the price being significantly higher than 100 million euros. The conditions required a minimal occupancy rate upon completion, as well as a minimum rent level, which was reached," said Gabriel Biris, managing partner of Biris Goran law firm, the developer's legal representative.