Conect Business Park converted two industrial properties in northern Bucharest into office buildings, where it charges a rent of 10.5 euros/square metre.
Tina and Livio Burton took over the Conect firm in June 1999, when they bought 86% of the company and subsequently raised their stake to 97% through the Tinapack company.
The company demolished part of the facilities that were used for the production of connectors in the past, while two buildings were renovated and turned into modern office spaces and therefore the company?s core business.
The two buildings have a cumulated area of around 20,000 square metres and the company intends to begin building another four office buildings this year, with three of the buildings set to be 8-storey tall, while the fourth will have over 20 storeys.
When completed, the business park will have around 100,000 square metres of office space.
The buildings part of Conect Business Park have an occupancy rate of 100%, with the average rent standing at 10.5 euros/square metre.
Expenses for renovation amounted to around 200 euros / square metre for the two finalised buildings, which currently house the offices of some major tenants such as Alcatel telecom company and Domo, a retailer of electronics and electrical home appliances. The company renovated the space itself and worked with Eurisko and Regatta real estate brokerage firms to lease the offices.
In August 2006, the portfolio of the company was appraised by Smith Hodgkinson at 47 million euros, according to a representative of the Conect Business Park.
The platform of Conect Business Park totals an area of 41,000 square metres and is located close to another large business park - Iride Business Park.
Upon its completion Conect business park will be one of the largest business parks in Bucharest, besides Sema Parc or B`neasa Business & Technology Park which are part of complex initiatives including commercial projects and housing units.
Beside the office buildings included in the project, the company will also erect a facility building, which includes conference rooms, a food-court and a fitness centre as well as other services.
Conect Business Park is currently in talks with Raiffeisen and HVB banks to secure a loan worth 70 million euros to finance the construction of more office space. The company is also in talks for the selection of the general contractor, so that works on the first building are likely to start within two months. Construction works for the other 3 buildings could begin in six months? time, according to company representatives.
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