China’s conglomerate and investment company Fosun has made its first foray in Central and Eastern Europe with the purchase of Floreasca Park, a 40,000 m2 office campus in the heart of Bucharest. Although financial details were not disclosed, local press put the deal price at €100-110 mln.
The asset was bought by Fosun through investment managers Resolution Property jointly with Zeus Capital Management from a fund managed by GLL Real Estate Partners, a member of Macquarie Group.
The office building is located in the Floreasca-Barbu Vacarescu area, a business district in Bucharest that is often also referred to as the 'New CBD'. The Oracle-anchored property comprises two modern Class A office buildings that are connected via an underground car park for 586 cars. Other blue-chip tenants include Kellogg’s, BASF, Saint-Gobain, Ursus Breweries, and ENI.
Scott O’Donnell of Resolution Property, commented: ‘Despite changing working practices, the demand for well-located, well-fitted-out offices in central business districts will continue to be a valued commodity. We are excited by the ways in which real estate continues to evolve and have a proven track record for being at the forefront of those changes. We look forward to making the acquisition of Floreasca Park the next step in our expanded presence in Romania and Central and Eastern Europe.’
Stelios Zavvos, chairman and CEO at Zeus Capital Management, commented: ‘This is the fifth transaction of our investment platform that is focused on prime commercial real estate properties in the region. We are confident that this market-leading asset in Bucharest’s promising office market will perform exceptionally well for our investors.’
The buyers were advised by Kinstellar, Knight Frank, Ernst & Young and Sentient. The acquisition was financed by Erste Bank. GLL Real Estate Partners was advised by PeliPartners, and Cushman & Wakefield Echinox, and Portland Trust as property manager.
