As it was reported yesterday, the €300 million sale of NEPI Rockcastle’s Romanian office portfolio to AFI Europe has been suspended. In their separate announcements, the buyer claims that the completion of the transaction was impossible due to the COVID-19 related restrictions imposed by the authorities, while the seller insists that these restrictions did not prevent completion. The two companies have not reached a consensus on postponing the transaction’s deadline. NEPI Rockcastle has interpreted AFI Europe’s actions as a wish to cancel the acquisition and is now asking the company for a €15 million compensation.

The decision of the authorities to temporarily suspend the purchase of goods considered non-essential from shopping centres affects more than 9,000 stores and each day when they are closed equals €15-20 million lost income, according to Cushman and Wakefield Echinox.

The €300 million sale of NEPI Rockcastle’s Romanian office portfolio to AFI Europe has been suspended due to the coronavirus crisis, Profit.ro reports.

Belgian real estate developer Liebrecht & wooD, continues the development of its second outlet centre on the Romanian market, in Cernica, near Bucharest, despite the effects of the COVID-19 pandemic, zf.ro reports.

Impact Developer & Contractor, a real estate developer listed on the Bucharest Stock Exchange, has convened the shareholders to approve a bond issue of maximum €100 million on 28 April.

Globalworth released its annual financial reports for 2019 and issued a COVID-19 statement. Since the beginning of the year, Globalworth has further improved its liquidity, which is currently close to €600 million of available cash.

The Poșta Puișor building in central Bucharest will be transformed into an office building by Forty Management & Investments, a company founded in 2015 by local investors Lucian Azoiței and Tudor Bădițescu, profit.ro has learnt.

CTP further expanded its portfolio in Romania and in the vicinity of Bucharest where it owns three properties: CTPark Bucharest West, CTPark Bucharest and CTPark Bucharest Chitila. The most recent 57,000 sqm purchase, Equest Logistic Park, is located near the capital, on the A1, at km 13. It was acquired for approximately €30 million from Forum Serdika, in the beginning of March 2020.

The Bucharest economy stands as one of the most insulated service centres in Europe to the negative fallout related to the COVID-19 outbreak. This is largely due to Bucharest’s heavy reliance on IT&C activities as well as scientific and professional services, on par with European capitals like Dublin, Paris and London.  That said, Romania’s high integration in global value chains means that it will face significant headwinds given negative developments in the global economy.

Erste Bank Group anticipates an economic slowdown for 2020 in most CEE countries due to the coronavirus situation. The bank’s report mentions a negative scenario as well, which would result in a massive recession in the region.