The recently traded office building has four floors, a total built area of 1,100 square meters, 1,000 square meters of leasable space, an occupancy rate of 100%. It is located in the Herastrau area, Bucharest, near the Chinese Embassy. The building was bought by a company that has entirely Romanian capital and operates in logistics services through ESOP Consulting. The purchase price was around 1,150 euros/sqm built.
The main advantages of this acquisition are the quality of construction and location, the building being in the Herastrau area, near the park with the same name, the largest in Bucharest, in the north-central part of the Capital.
“I have noticed in the last 12 months a growing interest from Romanian and foreign investors for the purchase of new small and medium office buildings, located in the ultra-central or north-central areas of Bucharest, in the context in which bank deposit yields are close to 0, and in some countries, they have fallen below 0.
Buildings similar to the one traded through ESOP, have the advantage that they can offer yields of 6-10% per year, with a low, predictable vacancy rate and also with the premises of a high degree of liquidity over 5-10 years, either by resale to other investors or to those who want to buy a building for their headquarters, either by selling on floors or converting them into residential buildings “, says Alexandru Petrescu, Managing Partner at ESOP Consulting l CORFAC International.
The traded building has the spaces on the first floors arranged for offices, being a partitioned open space and on the top floor an apartment for residential purposes. Tenants occupy all office space at this time.
The construction is of superior quality and is equipped with an elevator, double-glazed windows, parquet, air conditioning, central heating, alarm system, reception, and equipped kitchen, and benefits from three underground parking spaces and seven outdoor ones.
“From our experience, we can say that the simplified formula for those who want to invest in such properties is: a building with a good location, which offers a yield of 6-10% per year, with a low, predictable vacancy rate and a high degree of liquidity and flexibility, and the identified buildings must be analyzed together with a real estate consultant with experience in both rental and sales transactions”, recommends Alexandru Petrescu, Managing Partner at ESOP Consulting at CORFAC International.