Avestus Capital Partners, an Irish real estate investment and asset manager, sold a landmark office building in the heart of Sofia. Moskovska Business Center changed its owner after several months of negotiations with strong interest from local and foreign investors. The buyer is a Bulgarian company owned by private investors with interests in different fields of business. The transaction price has not been disclosed. Cushman & Wakefield Forton acted as an exclusive advisor to the seller.
The business centre is among the few modern office buildings in the CBD area, located within several minutes walking distance of state and municipal institutions. It was developed in 2001 and provides approximately 4,500 sq. m of lettable space over eight floors, as well as one underground parking level. The Embassy of the United Kingdom in Sofia is the key tenant in the office project.
While in the last quarters the property market was dominated by acquisitions of large shopping centres, now the investors have shifted their focus on value-add transactions with office properties. Their interest is provoked by the stable rents, low vacancy and the supply of prime assets on the market. At present, the average prime yield for office space in Sofia is 7.75% while average asking rents for Class A properties vary between €12 and €14 / month / sqm.
