Romanian real estate group One United sells its 20% stake in One Herastrau office building

Romanian real estate group One United (BVB: ONE) announced that One Herastrau Office, a company where it indirectly held a 20% stake, was entirely sold to a third party (“a private investor”) for EUR 21 mln. The buyer is a Latvian investor represented by Vincit Union, according to Profit.ro.

One United Properties holds a 30% stake in One Herastrau Office Properties, which in turn had a 66.67% stake in One Herastrau Office, the note to investors reads. So the BVB-listed company indirectly owned 20% of One Herastrau office – the owner of an office building with the same name and a total GLA of 8,074 sqm distributed over 7 floors and additional 3 floors of underground parking.

The private investor took over the entire One Herastrau Office for EUR 21 mln after One Herastrau Office Properties purchased the 66.67% stake at a EUR 15 mln valuation for the whole business (hence EUR 10 mln for its 66.67% stake).

One Herastrau Office Properties (where One United holds 30%) thus derived a EUR 4 mln capital gain (based on the EUR 14 mln valuation of its 66.67% stake in One Herastrau Office) therefore One United obtained a significant capital gain (almost +12% per annum, annualised) of EUR 1.2 mln on its EUR 3 mln initial investment (30% of 66.67% of EUR 21 mln) in 2020.

The target of One United Properties in the sale process of One Herastrau Office was to obtain a yield of around 7%, according to the sources previously cited by Profit.ro.

(Photo source: Facebook/One Herastrau Office)