AFI Europe Romania and Dedeman Sign Agreements to sell The Office Project AFI Park for EUR 164 million
Bucharest, June 1st, 2017:
AFI Europe signed a pre-agreement to sell AFI Park 1-3 office buildings to Dedeman, the leading company in Romania in the DIY retail segment. The agreement also includes an option to sell AFI Park 4&5. The total price for AFI 1-5 is approx. EUR 164 million.
“Once this transaction is completed, it will be AFI Europe’s first sale transaction in Romania. An important milestone from our point of view as an international developer having already invested more than five hundred million EURO in Romania and currently developing 3 new important projects: AFI Brasov mixed use project which includes 45,000 sqm shopping mall and 25,000 class A offices, AFI Tech Park – a 56,000 sqm office park – and AFI City residential project in Bucurestii Noi” stated David Hay CEO AFI Europe Romania.
The AFI Park office development represents, by itself, a great achievement for our company in Romania. Completing the full development cycle of 5 “Class A” office buildings in 5 years, achieving an occupancy rate of 100% with some of the most important multinational companies operating in Bucharest, and now this disposal are a solid proof of the valued package of facilities and technical specifications we offer in our office projects to both occupiers and investors. The experience we gained in developing AFI Park is of great value for our upcoming projects on the office segment”, added David Hay.
Dragos Paval, CEO of Dedeman, stated: „The AFI Park project reflects our high standards, that we want to exercise in all our business, applied to the office sector. We have concluded that this acquisition is the most robust and confident step that we can take today in the field of commercial real estate, a sector that we want to invest in. Furthermore, we believe that this investment will solidify our group and our core business of DIY retail together with the trust of our existing and future business partners.” Dedeman is the leader of the Romanian DIY market and is one of the largest companies in Romania operating 45 stores with estimated sales this year of EUR 1.5 BN.
AFI Park 5 office buildings offers 70,000 sqm GLA of office leasable area occupied by multinational corporations. AFI Park line-up of tenants includes: Microchip Technology, Electronic Arts, Endava Romania, Cameron US, SII Romania, ORTEC Central & Eastern Europe, FotoNation, Telus International, Veeam Software, SecureWorks and more. All AFI Park buildings are green buildings having LEED Gold Certification.
AFI was advised by Colliers International, law firm NNDKP and lawyer Bianca Stamatoiu, while Dedeman was advised by Popovici, Nitu, Stoica & Asociatii.
Robert Miklo of Colliers International stated: „We congratulate AFI on their first exit in Romania in a transaction that can become not only the largest pure office deal in the history of the local investment market, and one of the largest in the Central and Eastern European region, but which also successfully attracted, in Dedeman, a new player and the first domestic investor at this scale. This is a very consequential transaction for our market and will have a positive influence on the perception of Romania both in the international arena as well as in the eyes of the local investment community. We also congratulate Dedeman on their confident market entry with the acquisition of such a fine and strategically positioned property.”
About AFI Properties
AFI Properties is a member of the AFI Group, an international holdings and investments conglomerate with subsidiaries that engage in real estate, construction, infrastructure, industry and hotels (www.afigroup-global.com).
The company is active in the income producing and development property market since 1971. AFI Properties has been listed on the Tel-Aviv stock exchange in 2004. The company has been active in Europe since 1997 through its subsidiary AFI Europe mainly in the CEE markets. AFI Properties is ranked “BBB+ positive” by S&P and “A3 stable” by Midroog (a subsidiary of Moody’s).
About AFI Europe
AFI Europe, a subsidiary of AFI Properties, is one of the leading real estate development, management and investment companies, which is operating in Central and Eastern Europe since 1997.
AFI Europe’s diversified portfolio consists of shopping malls and retail properties, business parks and large-scale residential and mixed-use developments. AFI Europe operates in Romania, Czech Republic, Poland, Germany, Bulgaria, Serbia, Hungary and Latvia.
About AFI Europe Romania:
AFI Europe operates in Romania since 2005. The company has developed and is managing “AFI Cotroceni”, the largest and most dominant shopping mall in Romania and among the leading shopping malls in the CEE region. The mall spreads over a leasable area of close to 90,000 sqm (GLA) and offers to its visitors a large entertainment area with multiple leisure options and a variety of over 300 shops of local and international brands, visited by 50,000 customers per day.
In October 2013, AFI Europe inaugurated AFI Palace Ploiesti, the first and only modern shopping mall developed in the city centre of Ploiesti, following an investment of over EUR 50 million. The shopping mall offers a total gross leasable area (GLA) of 34,000 square meters spreading over two retail floors occupied by 100 national and international brands, including more than 7,000 sqm of entertainment.
Adjacent but fully integrated into AFI Palace Cotroceni shopping mall, AFI Europe Romania has developed AFI Park, Bucharest’s newest and most advanced Class A Business Park. AFI Park offers 70,000 of office leasable area occupied by multinational IT&C corporations. AFI Park 1-5 are 98% leased. In April 2016 AFI Europe Romania has completed AFI Park 4&5 office building offering additional 32,000 sqm of gross leasable area to the total project. AFI Park line-up of multinational tenants includes: Microchip Technology, Electronic Arts, Endava Romania, Cameron US, SII Romania, ORTEC Central & Eastern Europe, FotoNation, Telus International, Veeam Software and Dell SecureWorks.
AFI Europe Romania is currently under development in the City Centre of Brasov Romania of AFI Brasov, which includes a 45,000 sqm GLA shopping mall and 25,000 sqm GLA office project.
In the office segment, AFI Romania is under development of AFI TECH PARK, a 56,000 sqm of GLA Class A Business Park located in close proximity to the J.W. Marriott hotel and the Romanian Parliament. The business park will comprise of 2 low rise office buildings and one office tower, with ample green areas, a high tech/campus style environment in an urban complex with a central plaza & gardens. AFI TECH PARK manages to answer the expanding needs of IT&C companies in Romania by offering a suitable space in terms of technical specifications accompanied by required expansion options. The fact that the Business Park is located in Downtown Bucharest and not in City Outskirts provides the Park the unique advantage sought after by multinational companies in Romania
In addition, AFI Europe Romania has two projects to be developed in the near future on the company’s 80,000 sqm land plot in Arad where a Retail park is to be developed and the large scale residential project AFI City, to be developed on the 148,000 sqm land plot in Bucurestii Noi district 1 of Bucharest.
Dedeman, a 100% Romanian business established in 1992, is the national leader of the DIY market. By the end of 2016 the company had 45 stores, over 9200 employees and a turnover of over EUR 1.17 Billion. Its main headquarters and one of the logistic centers are located in Bacau, Moldova, in the north-east of Romania. In Bucharest Dedeman has 4 stores, with at least one other to be opened this summer. Dedeman’s physical and online stores sell over 45.000 products in well thought ranges that cover all demands for architecture and design materials as well as interior decorations. Dedeman also offers its clients several auxiliary services, such as home delivery, tool rentals, paint mixing, special orders, heavy materials delivery, goods returning services, kitchen and bathroom design.
About Colliers International Group
Colliers International Group Inc. (Nasdaq:CIGI) (TSX:CIGI) is one of the global leaders in commercial real estate services with over 15,000 professionals operating in 68 countries. Colliers provides a full range of services to their final clients, developers and investors, from brokerage, property and asset management, project management, investment, consulting and valuation to market studies and products for financial institutions. Colliers International has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals’ Global Outsourcing in the last 11 years. More details about Colliers International on www.colliers.ro, on Facebook and LinkedIn.