Immofinanz buys iconic office building in downtown Bucharest from lender BCR

Austria's Immofinanz, one of the biggest real estate investors in Romania, signed a contract with Banca Comerciala Romana (BCR), the local subsidiary of the Austrian group Erste, to take over the Bucharest Financial Plaza office building, known as the "Bancorex tower," in downtown Bucharest.

The value of the transaction is EUR 36 mln, according to reports by Immofinanz and BCR.

"This agreement represents an important step for Immofinanz in strengthening its high-quality office portfolio and its innovative myhive office brand in Bucharest. The Romanian economy will recover rapidly from the decline caused by the pandemic in 2020, and we expect positive developments in the coming years," stated Dietmar Reindl, COO of Immofinanz.

"As part of the planned refurbishment into a high-quality, modern and sustainable office property under our flexible premium myhive brand, we will also provide more space for the public area, and the green city terrace will bring a highly appealing central attraction to the residents of the city."

The renovation work is scheduled to begin following the planning and approval phases in the second half of 2022, with completion scheduled for 2024.

BCR initiated the sale process of the Bucharest Financial Plaza office building in August 2019. The property is 24 years old and has an area of 26,300 sqm for rent and a book value of over EUR 45 mln, according to Profit.ro.

The building on Calea Victoriei, next to the CEC Palace, was completed in 1997, and it was the first modern building in Bucharest. It was initially used by Bancorex, and, after the bankruptcy of the former state bank it became the property of BCR. The building was renovated in 2012.

Investment fund Revetas Capital also bid for the property, among others, Profit.ro reported.

(Photo source: BCR/Mircea Dragos)