Polish group GTC buys land for new Bucharest office development

Polish developer Globe Trade Center (GTC) has purchased a 15,000 sqm land plot in Bucharest where it plans to develop a new office project, its first in the capital in the last seven years. It bought the land from investment fund Bluehouse Capital, part of the 6 hectares the fund owns in the Expozitiei Blvd. area in Bucharest. GTC paid EUR 10.5 million for the plot, where it will develop three office buildings with a leasable area of 46,000 sqm and 920 parking places. The total investment in the land and the project, called City Rose Garden, adds up to EUR 89 million. The City Rose Garden should be delivered between 2019 and 2020 and is currently in the planning phase, alongside seven other real estate projects the developer has in the pipeline in Hungary, Serbia, Croatia, Bulgaria and Poland. It plans to invest EUR 540 million in them. GTC estimates net operational revenues of EUR 9 million and a yield of 10% from the new Bucharest project. GTC has developed two of the best-known office buildings in Bucharest, America House and Europe House in Victoriei Square. The group currently owns the City Gate, Premium Point, and Premium Plaza office buildings in Bucharest. At the beginning of July, it also bought the Cascade Office Building on Buzesti Street, near Victoriei Square, for EUR 9 million. Its local portfolio is evaluated at EUR 180 million and has an occupancy rate of 90%. editor@romania-insider.com