Insolvent Tower Center downtown Bucharest sold to two individual investors

The office building Tower Center in Bucharest's downtown office district Victoriei Square was recently sold to investors Ioannis Papalekas and Dragoş Bîlteanu, according to Romanian media.

The 24-floor tower, which is currently empty after litigation and insolvency in the past, was sold in a deal reportedly worth EUR 50 million. The sellers were Industrialexport and Avrig 35, while one of the buyers, Ioannis Papalekas is known for having bought the City Mall shopping center in the capital city, which was also in dire straits. The deal was complex and involved a debt of EUR 44 million, some of which was turned into shares, and a EUR 17.5 million payment to Alpha Bank, on account of the loan granted to develop the building. The bank recently approved another EUR 15 million loan for the former owners of the building. The office building can be now leased, according to RVA Insolvency, the judiciary administrator of Tower Center International, the entity that owns the building. Greek real estate investor Papalekas bought the insolvent City Mall for EUR 17.3 million. editor@romania-insider.com (photo source: Bog'Art)