Corporate Finance House Group (CFH), a Middle Eastern investor, has acquired the Day Tower office building in Bucharest, from the project's developer, Dimitris Mourkakos of Day Group.
Financial details were not disclosed.
The asset, completed in 2018, is a grade A office building situated close to the city's historic centre with a BREEAM 'Excellent' rating. The building hosts, under a long-term agreement, the country headquarters of energy firm Enel.
CFH executed the deal by acquiring the holding structure that owns the building.
'This is our client’s first investment in Bucharest, predicted to be one of the top ten fastest growing European cities over the next five years,' said Chris Gillum, head of offices, regional investment advisory EMEA, Savills, advisors to CFH.
'This follows an increasing trend we have witnessed in the market, of international capital targeting the yield premiums available in the CEE markets. Day Tower is a high-quality asset in the central area of the city which is well let and will undoubtedly benefit as the district continues to develop,' Gillum added.
'This transaction marks the entry into a new stage of development for the investment market in Romania,' said Codrin Matei, managing partner, Crosspoint Real Estate, advisors to the vendor.
'The transaction will further increase other investors and developers’ confidence in the positive fundamentals in Bucharest. The compression of prime office yields we have seen over recent years, as well as the capital diversification will most likely determine an increase of the liquidity and subsequently a re-positioning of the Romanian market, as a destination that can no longer be ignored by large investment funds,' Matei concluded.