Austrian investor pulls out of major office deal in Bucharest amid COVID-19

Austrian investor S Immo has reportedly pulled out of the negotiations with Swedish developer Skanska for acquiring two office buildings in western Bucharest (Politehnicii area), due to COVID-19, according to Profit.ro.

S Immo also owns the Sun Plaza shopping mall in southern Bucharest.

The two buildings subject to negotiations with Skanska are Campus 6.2 și 6.3, part of the Campus 6 project. The agreement sketched between the two parties, valued at almost EUR 100 million, was expected to turn into the largest real estate transaction of the year.

"The negotiations on Campus 6.2 and 6.3 have been interrupted due to current circumstances. For the time being, there are no discussions about transactions," representatives of S Immo stated.

Under these circumstances, Skanska has put the two buildings up for sale again.

The COVID-19 epidemic has blocked other big transactions, such as that between NEPI Rockcastle and AFI Europe. The negotiations between the two companies stopped after procedures reached an advanced stage, and the two sides had already signed a preliminary agreement.

The two deals, involving the office properties of Skanska and NEPI, are valued at over EUR 400 mln.

(Photo source: Skanska)