AFI Europe NV has concluded a new agreement with NEPI for the purchase of 4 Class A office projects in Romania, with a total GLA of 118,500 sqm. The transaction value is of €290 million and the portfolio’s takeover is scheduled to be finalised within the next four months.
The original agreement for the sale of NEPI Rockcaslte's office portfolio of AFI Europe Romania was signed at the end of last year and the transaction would have had to be completed by the end of Q1 2020. It was announced at the beginning of April that the €300 million sale has been suspended. The buyer claimed that the completion of the transaction was impossible due to the COVID-19 related restrictions imposed by the authorities, while the seller insisted that these restrictions did not prevent completion. The two companies had not reached a consensus on postponing the transaction’s deadline and NEPI Rockcastle asked the company for a €15 million compensation. At the beginning of July, NEPI Rockcastle and AFI Europe initiated arbitration proceedings in connection with the disputed matter and hinted that they may enter into a new binding agreement regarding the disposal.
“AFI Europe Romania remains committed to developing its strong portfolio on the local market. This acquisition is fully in line with our strategy of expanding our operations in Romania with focus on yielding properties”, stated Doron Klein, CEO AFI Europe Romania & Czech Republic.
The acquired portfolio consists of 4 Class A office projects totalizing 8 office buildings situated in Bucharest and Timisoara:
- Floreasca Business Park, located at 169 Calea Floreasca, Bucharest, with 36,470 square meters GLA;
- The Lakeview, located at 301-311 Barbu Vacarescu St, with 25,907 square meters GLA;
- Aviatorilor 8, located at 8A Aviatorilor Blvd., Bucharest, with 8,203 square meters GLA;
- Timisoara City Business Center, located at 10 Coriolan Brediceanu St, Timisoara, with 47,936 square meters GLA.
