A fund advised by Morgan Stanley Real Estate Investing (MSREI), in a joint venture with David Hay, former CEO of AFI Europe Romania, has acquired an office building in the Romanian capital from a fund managed by AEW Europe.
Financial details were not disclosed, but local media placed the price in the €90 mln range.
America House, a prime office asset located in Bucharest, comprises some 28,000 m2 of GLA and is let to tenants including Schlumberger, MasterCard, McDonald’s, Cisco, Starbucks and the Japanese Embassy. The acquisition was financed by Austrian Erste Group.
'We are very pleased to have acquired a prime asset in Bucharest,' said Ulf Pleschiutschnig, Co-head of Europe Investments with MSREI.
'This investment is consistent with our strategy of buying quality assets in central locations with potential to improve the underlying performance through asset management initiatives. We look forward to working with David Hay to manage the asset as we seek to deliver additional value to our investors,' Pleschiutschnig added.
Hay, the CEO of Add Value Management, will be working alongside MSREI to run the operations of the asset.
'I am very excited to work with MSREI in its first transaction in the Romanian market,' said Hay. 'After spending almost ten years in the region, I continue to believe in the strength of the market and I am looking forward to new opportunities to develop the business further.'
MSREI was advised by Tuca Zbârcea & Asociatii and Colliers International Romania.
AEW was advised by a team consisting of Clifford Chance Badea, serving as the legal advisor, and Cushman & Wakefield Echinox who ran the sale process.