AEW Europe exits Romanian market most likely at a loss

French real estate investment fund AEW Europe advised by real estate consultancy firm Cushman & Wakefield Echinox and local law firm Clifford Chance Badea has sold its entire portfolio in Romania.

It sold the America House office building in Bucharest (purchased in 2007 for EUR 120 mln) to Morgan Stanley and Israeli investors with experience in the sector, advised by local law firm Tuca, Zbarcea si Asociatii. It also sold the Promenada Mall shopping center in Targu Mures (EUR 60 mln invested value in 2007 sold for EUR 90 mln to AEW in 2008) to Hungarian real estate investor Indotek Group, advised by local law firm Biris Goran.

The combined value of these deals was not revealed, but it is likely lower than the price paid for the two projects.

AEW is one of the largest real estate investment managers in the world, being controlled by the French financial group Natixis. The investor entered Romania in 2007, by taking over America House from the Polish group Globe Trade Center, and, a few months later, Promenada Mall Targu Mures from Belgian developer BelRom.

AEW put up for sale the two projects in 2016 and the deal with Morgan Stanley was more or less agreed since early 2018. The price for both projects at that time was estimated at around EUR 170 mln. AEW paid EUR 210 mln for both projects and they were evaluated at EUR 136 mln at the end of 2015.

(Photo source: C&W Echinox)