The real estate division of German group Deutsche Bank last weeksigned the contract to buy the biggest office building inBucharest, BOC, which is located in Pipera, in a deal put at morethan 100 million euros.
The building, which has been recently completed, has a 57,000square metre lettable area, about twice larger than Charles deGaulle Plaza and America House, and was mostly rented, withcompanies 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 seriesof British and Greek businessmen, represented by IoannisPapalekas.
The project also includes an office building completed last yearand two residential buildings currently under construction close tothe Dimitrie Pompei Boulevard in northern Bucharest. All thesebuildings should become the property of Deutsche Bank uponcompletion, for a total price of some 340 million euros, as part ofa deal signed in 2008.
"Everybody was sceptical about this deal, but on Friday we signedfor the second closing, for the second office building in theproject. There is one more stage to go, namely the residentialbuildings, which should be completed next year," said IoanaNiculeasa, 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 onthe office space market are going down and about 100,000 squaremetres of office space are vacant. Market sources say that some ofthe future tenants of the building that Deutsche Bank boughtinclude 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 ofCyprus, which financed the acquisition. The two banks financed bothDeutsche Bank in buying the buildings and the developers inbuilding the project, existing data reveal.
"I believe this is the most expensive office building sold inBucharest (the most expensive building sold so far is America Housefor 120 million euros i.e.), with the price being significantlyhigher than 100 million euros. The conditions required a minimaloccupancy rate upon completion, as well as a minimum rent level,which was reached," said Gabriel Biris, managing partner of BirisGoran law firm, the developer's legal representative.
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