AFI Europe Romania has signed a non-binding letter of intent with Plaza Centers for the acquisition of the majority stake (75%) of the Casa Radio, located in the centre of Bucharest. The value of the offer amounts to €60 million.
AFI Europe will carry out due diligence operations which, if completed in a satisfactory manner, will lead to the signing of a sale-purchase pre-contract. The final sale-purchase contract is subject to certain conditions.
“Casa Radio is a landmark in Bucharest and the acquisition of the project is in line with our expansion strategy. Given the early stage of this acquisition, we will provide updated purchase information and plans for this project as the process advances,” says Doron Klein, CEO of AFI Europe Romania.
The Casa Radio building, partly built in 1986, was originally intended to host the Communist Party Museum. After 1989, following several attempts to fill the building with a new purpose, it was abandoned and taken over by Plaza Centers in 2006. The developer envisioned a €1 billion mixed-use project including offices, a shopping centre, apartments and a hotel. Named Dambovita Center, the works on the building started in 2008 but were stopped a year later due to the economic crisis. Having already invited €85 million in the projects by 2010, Plaza Centers announced the continuation of the project in 2017 but later decided to sell it instead.