Real estate investment fund Globalworth Real Estate Investments has bought Tower Center International (TCI) in Bucharest’s Victoriei Square for €58 million.
The building, developed by Avrig 35, was bought in 2012 by investors Ioannis Papalekas and Dragoş Bîlteanu for some €50 million. The building spent more than three years unoccupied amid litigation.
The 26 floor building, which has 24,711 sqm of gross built area, houses tenants including EY, Hidroelectrica, Deutsche Bank, the Romanian Ministry of European Funds and Cegeka.
Globalworth’s deputy chief executive officer and chief investment officer Dimitris Raptis said the company was delighted to acquire the “landmark asset”.
The deal will consist in shares and cash. The share issuance equals €13.6 million, at the Globalworth IPO placing price of €5. Stanuta Enterprises Limited, which owns half of Tower Center International, will receive 2.5 million of these ordinary shares, while 200,000 will be issued to Pokandro Limited, which owns the other half in the office building. The latter will also receive €11.6 million in cash. Out of it, the buyer already paid €6 million as an advance cash payment, as already announced in September 2013.
The central business district (CBD) is one of Bucharest’s prime office submarkets and has good infrastructure, public transportation (subway, tram and bus) and is in close proximity to many public institutions.
Globalworth posted revenue of €8.1 million for period ended December 31, 2013, while its net asset value totaled €126.2 million. Its pre-tax profit was of €13.7 million for the full year.