Hagag Development Europe has withdrawn from negotiations with SNC-Lavalin for the purchase of an office building in Bucharest, in a deal estimated to have reached over €8 million.
The deal faltered over contractual disagreements and lack of clarity regarding permits for the building, according to rhn.ro.
The project has a leasable area of 5,800 sqm and its occupancy rate stood at 70% in June 2022, when Hagag signed the first purchase agreement for the property.
If the deal would have gone through, Hagag would have converted the office building into a hotel. The developer has specialised in the purchase of old buildings that received new functions following significant investments.
In early 2023, Yitzhak Hagag, Co-Founder and Shareholder of Hagag Development Europe, told Property Forum that the company plans to invest around €130 million in the local property market in the upcoming years.
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