AFI Europe buys NEPI Rockcastle’s office portfolio in Romania with EUR 300 mln

Israeli group AFI Europe signed the acquisition of the Romanian office portfolio of NEPI Rockcastle for a sum of over EUR 300 million. The purchased portfolio consists of four Class A office projects in Bucharest and Timisoara, namely Floreasca Business Park (36.470 sqm GLA), The Lakeview (25.907 sqm GLA), Aviatorilor 8 (8.203 sqm GLA), and Timisoara City Business Center (47.936 sqm GLA).

This is the largest deal on Romania’s real estate market this year. Following this transaction, AFI Europe will become one of the largest office owners in Romania, with a total gross leasable area of 282,000 sqm of office space.

“The acquisition of the NEPI office portfolio in Romania represents a strategic extension of our business model. During the last 10 years, we have organically developed major projects in Romania, and now we are expanding our portfolio also through the acquisition of income-generating properties that will strengthen our position on the Romanian market,” said Doron Klein, CEO AFI Europe Romania and the Czech Republic.

AFI Europe Romania is one of the largest companies in the local real estate market. The company has completed and is developing major projects in the retail, office and residential segments in Bucharest, Ploiești and Brașov. Its biggest local property is the AFI Cotroceni shopping mall in Bucharest, one of the largest malls in Romania. In the office segment, AFI Europe Romania is the developer and owner of the projects AFI Park 1-5, AFI Tech Park and AFI Park Brasov.

CMS provided legal assistance to the buyer, Ernst&Young was the financial advisor and JLL was the real estate consultant for the deal (for AFI).

NEPI Rockcastle, which is the biggest mall owner in Romania, said the transaction is in line with its strategy to focus on its core business. "As previously stated, the disposal of the Romanian office portfolio is in line with NEPI Rockcastle’s investment strategy focused on core dominant retail properties. The proceeds from the disposal will be used to fund the group’s pipeline of acquisitions and developments," the fund said in a note to investors.

The transaction should be completed in May 2020.

(Photo source: Nepirockcastle.com)