Real estate developer AFI Europe, a leading real estate player on SEE and CEE markets, has acquired the myhive Victoriei building on Calea Victoriei from Austrian commercial real estate group Immofinanz. The transaction, brokered by Colliers and Cushman & Wakefield Echinox, was valued at around 27 million euros and is part of IMMOFINANZ's strategy to optimize its portfolio.
Completed in 1998, myhive Victoriei was the first modern office building in Bucharest and the tallest building in the city center, with a built area of 38,703 square meters. Renovations in 2012 brought the property up to modern standards and now holds a recently granted building permit for a complete renovation, which has been transferred to the buyer.
“The successful sale of the office development in Bucharest shows that we are consistently implementing our focused portfolio strategy even in a challenging market environment. We will reinvest the proceeds from the sale in value-creating purchases of higher-yielding properties in our core markets”, said Radka Doehring, member of the Executive Board of IMMOFINANZ.
“The acquisition of the myhive Victoriei building is in line with our development strategy in Romania. As a long-term partner for the business community, known for developing high end projects that bring added value to the community and the local economy, our goal is to transform this iconic property into a modern, A Class mixed use project that meets the highest standards of quality. A sustainable building, complying with ESG requirements, creating a work and leisure destination in the heart of Bucharest”, mentioned Doron Klein, Deputy CEO AFI Europe & CEO AFI Europe Romania and Czech Republic.
“The sale of myhive Victoriei has been a well executed and well-paced transaction between our Client, IMMOFINANZ, and AFI Europe, who have displayed high conviction in this project. The opportunity attracted meaningful interest and contributes to an increasingly active Romanian investment market as shown by the year-to-date results, and with more activity on the way", states Robert Miklo, Director | Investment Services at Colliers.
The property, previously acquired by IMMOFINANZ from Banca Comercială Română in March 2021, is located near Bucharest's Kilometer 0, close to the Old Centre. Following the new building permit, the refurbished property will offer flexible office spaces, attractive common areas, and various additional facilities and services, such as conference rooms, lounge areas, and social events for tenants. The concept focuses on creating a friendly and collaborative environment that promotes employee productivity and well-being.
“Beyond the transactional aspects, this investment represents a unique opportunity to revive a building and its surroundings, transforming it from an old property to a new one with improved architectural and commercial appeal. Our team was pleased to work with IMMOFINANZ and AFI Europe, both contributing to the vision of what the new property will become and how it will benefit the community", underlines Anca Merdescu, Director Investment & Debt Advisory at Colliers.
“The transaction and the subsequent development of this landmark property reconfirm the solid fundamentals of Bucharest office market and will create a new retail and F&B hotspot on Calea Victoriei, between Lipscani street, CEC Palace, Victoria Store and the National History Museum”, added Cristi Moga, Head of Capital Markets, Cushman & Wakefield Echinox.
In the first six months of 2024, the volume of commercial real estate assets traded in Romania reached 419 million euros, more than double the 167 million euros recorded in the same period in 2023. Despite challenging market conditions, prospects for 2024 are good, with potential interest rate cuts and signs that the market has reached activity and price lows in the West. Consequently, the annual outlook should see the market easily surpassing the previous decade's average, exceeding 600 million euros.
Romania has recorded the best property investment performance this year compared to the other five major economies in Central and Eastern Europe (Bulgaria, the Czech Republic, Hungary, Poland, and Slovakia), in a context where regional market activity has been subdued and transaction volumes have reached some of the lowest levels in the last decade.
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