Following the due diligence process, which verifies the plots’ parameters, Skanska Property Romania obtained in July a Urban Certificate for two buildings of 12 floors each on the land in Fabrica de Glucoză St., issued by the Bucharest Sector 2’s City Hall. This plot was bought at auction in the autumn of by the American group Romanel for EUR 2.39 million plus VAT. The sale was made as part of the bankruptcy process of the National Wood Institute, which owned the land.
„This is one of the plots we are analyzing in the Northern Bucharest. (…) If we make due diligence it doesn’t mean that we are going to buy. We just want to verify the environment and technical parameters before the acquisition. We are in similar discussions with more than two plots. We study seriously all the lands for sale in the Northern area. But we are also looking into the West, as there is a group of tenants wanting to stay there. In order to buy a land you have to analyze lots of things, as the owner could change his mind or you could find something inconvenient. By the end of this year we are going to announce more on this subject “, has declared Marcin Łapiński president of Skanska Property Romania.
The plot on Fabrica de Glucoză St. is in the proximity of the Green Court Bucharest project, where Skanska already completed two of the three scheduled buildings. The first building, the Orange headquarters, was completed in the beginning of this year and sold few months later to Globalworth for approx. EUR 42 million. The second building was officially completed last week, following EUR 35 million, and the construction of the third building reached the fifth floor out of twelve.
„Even if this area is facing traffic problems, it is attractive for tenants. We understand the future challenges of this area, but we decided to continue in the North because our first project is a success. It is part of the development risk. As a developer we always have to analyze the risk of a new project. WE must see how many projects we have ongoing and what are their occupancy rates. If the rate is good, then the risk is lower and we can continue with a new speculative project. Usually we develop medium size projects, which development includes 2-3 phases“, Łapiński also said.
The second building in Green Court Bucharest has 72 pct. occupancy rate and is rented to companies such as are Carrefour Romania, Sanofi, Colgate Palmolive Romania, Adecco Romania and RINF Outsourcing Solutions. By the end of the year, the owner estimates to have the entire building occupied and ready to sell.
„According to our strategy if we have a good occupancy rate we start to look for buyers for the building. by the end of the year we intend to have the building fully let, which means that in the next period we will have more and more discussions about its sale. We see there are transactions in the area, so it is a good moment for selling. We always consider as one of the potential buyers the buyer of the first building. I would like to receive offers from institutional investors such as GLL Real Estate Partners“, Łapiński added.
Recently, the German fund GLL Real Estate Partners, owned 19 pct. by the insurance group Generali, bought with approx. EUR 100 million the office complex Floreasca Park from the project’s developer, Portland Trust. The complex is situated in the same area as Green Court Bucharest, in the area Barbu Văcărescu Blvd.–Pipera Road.
Moreover, Ioannis Papalekas, the founder of Globalworth and the buyer of the first building developed by Skanska, has declared for Capital that he was interested in buying the entire complex.
The first project of Skanska, started in February 2013, is being developed on a plot bought with approx. EUR 17 million from a company controlled by the businessman Gabriel Popoviciu. Green Court Bucharest includes three office buildings with a total rentable area of 52,000 sq. m.
The entire project involves an investment exceeding EUR 80 million, completely sustained by the company’s own capital. The company estimates to complete the last building by June next year. (source: capital.ro)