Foreign investment funds put up for sale office building in downtown Bucharest

Investment funds Revetas and Cerberus, the owners of the Radisson Blu hotel complex in Bucharest, have put up for sale the Landmark office project in Bucharest’s Romana Square.

The two funds are looking to convince potential buyers to accept a yield of 6.75% per year, according to sources from the real estate market, which would be a new low for the local market. At such a yield, the value of the transaction would be around EUR 70-75 million, Ziarul Financiar has calculated.

Revetas and Cerberus bought the project from Piraeus group two years ago at an average yield of 7.25-7.5% and paid some EUR 60-65 million.

At the same time, the two funds are analyzing the possibility to buy the Bucharest Financial Plaza office building on Calea Victoriei, owned by BCR, the second-biggest bank in Romania. BCR still has its headquarters in this building, which it inherited from the bankrupt state-owned bank Bancorex. However, BCR is looking to move out and has leased 14,000 sqm in the Business Garden Bucharest project developed by Vastint in the Orhideea area.

(Photo source: Thelandmark.ro)