Resolution Property (based in the UK, a member of the Fosun Group, a major Chinese conglomerate and investment company) and Zeus Capital Management (a leading international real estate investment and asset management firm) have recently acquired Floreasca Park, a ca. 40,000 sqm office campus in the heart of Bucharest. The property was sold to the joint venture by a fund managed by GLL Real Estate Partners GMBH (a member of Macquarie Group).
The transaction is among the largest to have closed to date in Romania in 2020. It also involved a simultaneous major financing from Erste Group Bank AG under an English law facility.
Floreasca Park is Resolution’s first investment in Romania and Zeus’ fifth investment in the Bucharest real estate market and represents the first acquisition of the joint venture between the two investment and asset management firms.
The high-quality office building is located in the vibrant Floreasca-Barbu Vacarescu area, one of the most sought-after business districts in Bucharest that is often also referred to as the “new CBD”. The Oracle-anchored property is comprised of two modern Class A office buildings that are connected via an underground car park for 586 cars. Other blue-chip tenants of the building include Kellogg’s, BASF, Saint-Gobain, Ursus Breweries, and ENI.
The complex also meets high sustainability standards with features including water and heat recycling, natural cooling at night by a computerized window system, ground-sourced heat pumps, and use of groundwater for the cooling systems.
“Despite changing working practices, the demand for well-located, well-fitted-out offices in central business districts will continue to be a valued commodity. We are excited by the ways in which real estate continues to evolve and have a proven track record for being at the forefront of those changes. We look forward to making the acquisition of Floreasca Park the next step in our expanded presence in Romania and Central and Eastern Europe,” Scott O’Donnell, Resolution Property, commented.
“We are very pleased to conclude the acquisition of a landmark prime office building and progress with our investment program in Central East and South East Europe. This is the fifth transaction of our investment platform that is focused on prime commercial real estate properties in the region. We are confident that this market-leading asset in Bucharest’s promising office market will perform exceptionally well for our investors,” Stelios Zavvos, Chairman and CEO at Zeus Capital Management commented.
The buyers were advised by Kinstellar, Knight Frank, Ernst & Young and Sentient. The acquisition was financed by Erste Bank. GLL Real Estate Partners was advised by PeliPartners, and Cushman & Wakefield Echinox, and Portland Trust as property manager.
Victor Constantinescu, Managing Partner of the Bucharest office and Head of Real Estate at Kinstellar adds: “This transaction took a monumental effort over many months. I am proud of the entire team and the final result that we obtained for our client. Being the first significant prime property transaction since the beginning of the Covid-19 crisis, this should act as a catalyst for further transactions and bring confidence back to the market.”
The Bucharest team was personally led by Victor Constantinescu, and included Alexandru Mocănescu, Managing Associate, Smaranda Văcaru and Oana Grigore, Senior Associates.
