AFI Europe defers EUR 300 mln takeover of NEPI Rockastle’s office portfolio in RO

Israeli group AFI Europe has put on hold the acquisition of the Romanian office portfolio of NEPI Rockcastle, a deal announced in December for a sum of over EUR 300 million, according to an announcement on the Tel Aviv Stock Exchange quoted by Ziarul Financiar.

The portfolio consists of four Class A office projects in Bucharest and Timisoara, namely Floreasca Business Park (36.470 sqm GLA) (pictured), The Lakeview (25.907 sqm GLA), Aviatorilor 8 (8.203 sqm GLA), and Timisoara City Business Center (47.936 sqm GLA).

According to the report filed to Tel Aviv Stock Exchange, AFI Europe has requested the postponement of the acquisition, invoking the state of emergency in Romania and the high number of restrictions imposed by the authorities amid the coronavirus outbreak.

Separately, NEPI-Rockcastle has interpreted AFI’s announcement as a wish to cancel the acquisition, according to the report, and they have sent a message to completely cancel the transaction, asking for EUR 15 mln compensations for non-fulfillment of the purchase by AFI Europe.

AFI officials pointed out in the report that they still want to buy the offices, but after the emergency situation will pass and the movement restrictions imposed by the new coronavirus pandemic will be lifted.

(Photo: nepirockcastle.com)