Equest Balkan Properties (EBP), the commercial property investment firm focused on south-east Europe, has acquired three properties in the Romanian capital Bucharest for a total of EUR 33.8 mln.
Equest Balkan Properties (EBP), the commercial property investment firm focused on south-east Europe, has acquired three properties in the Romanian capital Bucharest for a total of EUR 33.8 mln.
The Vitantis Retail Park in southern Bucharest, which will comprise more than 35,000 m2 of lettable area when completed, was purchased for a payment of EUR 26.6 mln and the assumption of over EUR 5 mln of debt in the company.
The total planned project cost once completed will be EUR 48 mln. EBP said it expects to fund the balance of EUR 16.4 mln with bank debt. The target yield on the total cost is expected to be in excess of 9%.
The retail park is located in the 4th district of the city between two major residential areas with a catchment of over 650,000 people. The park's retail offering will include a 9,370 m2 Praktiker DIY store, two other large format superstores and a hypermarket-anchored shopping gallery with 70 individual retailers. There will be parking for 825 cars.
EBP said it has also acquired the Casa Mosilor property in Central Bucharest, which has 2,338 m2 of lettable office space, and the 790 m2 Otopeni office building in the north of the city for a total of EUR 7.35 mln from an Austrian investment syndicate. Casa Mosilor's tenants include Piraeus Bank (Romania) and SAP. The rental income for 2007 is forecast to coem to EUR 530,000.
The Otopeni building is home to UPS, ABC European Air & Sea Cargo Distribution, Cargo Partners and Arpiem Aviation Services, giving a total expected rental income of EUR 124,500 for 2007. The Austrian syndicate comprises the Soravia Group and IDAG, a Stabag investment company. EBP was launched by UK-registered Equest in 2005.