HAGAG ADDS MIXED-USE PROJECT TO ITS LOCAL PORTFOLIO

Real estate investor-developer Hagag Development Europe signed a partnership agreement with Romanian investment group Niro Investment Group for the acquisition of 50 percent of a multifunctional building located in the proximity of Herăstrău Park, in Bucharest. In addition, the company exclusively took over the operating and management activities for the entire building.

“H Herăstrău Park marks two important milestones for our company: on one hand, we are consolidating our current offer in terms of office and retail space, and, on the other hand, we are expanding our presence towards the northern part of Bucharest, beyond the residential projects currently under development in the area. We are excited about this new transaction and about adding to our portfolio a new mixed-use project that will help us respond better to the growing demand in the market,” said Yitzhak Hagag, co-founder and Chairman of Hagag Development Europe.

Over the upcoming months, the building will undergo a light refurbishment process focused on revamping all common areas, and will be welcoming its first tenants beginning of July 2025. 18 percent of the available office space has already been leased, with the developer’s leasing team currently in advanced discussions to rent out over 2,500 sqm of office and retail space. The company estimates an occupancy rate of at least 70 percent by the end of this year.

“We feel honoured for the trust that our partner has invested us with, and confident about the evolution of this collaboration, just as we are optimistic about the positive dynamics of the leasing activities. Our forecast shows that by the end of this year we will be reaching an occupancy rate of at least 70 percent for the entire building,” Yitzhak Hagag added.

All refurbishment and fit-out works, as well as the facility management and leasing operations, will be entirely managed by Hagag Development Europe.