AFI Europe Romania, the local subsidiary of Israeli real estate group AFI Europe, is close to completing the due diligence for taking over a portfolio of four office buildings in Bucharest and Timisoara put up for sale by NEPI Rockcastle for a sum of EUR 309 million, Economica.net reported.
This would be the largest deal on Romania’s real estate market this year.
The two sides signed a non-binding letter of intent three months ago but several conditions still need to be met, including the financing AFI expects to get from banks.
Subject to the preliminary agreement are the office projects Floreasca Business Park (36,300 sqm) (pictured), Timisoara City Business Center (47,800 sqm), The Lakeview Bucharest (25,600 sqm), and Victoriei Offices (7,800 sqm) - 117,500 sqm in total.
"The due diligence operations we carry out on the NEPI Rockcastle portfolio are going very well and, normally, we will sign with them by the end of this month. However, the transaction has to wait until completion, there are several steps. We will finance the purchase with a loan,” says Doron Klein, CEO of AFI Europe Romania.
If the transaction takes place, AFI Europe will become one of the largest owners of office buildings in Romania, with a total of 267,500 sqm lettable office space.
AFI owns two office projects in Bucharest, AFI Park and AFI Tech Park.
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