INVESTMENT

December 2012 - From the Print Edition

As in the previous years, the most important investment deals were on the office market. In 2012 investment funds bought City Business Centre in Timisoara (acquired by NEPI) and HQ Victoriei from Bucharest (acquired by Greek-based Zeus Capital Partners), officials of Capital Property Advisors (CPA) told The Diplomat - Bucharest.
Besides those transactions, CPA mentioned other two deals: Dragos Bilteanu and Ioannis Papalekas bought Tower Centre International and Litexco Stirbey Center was sold.
"The investors orientated towards income-producing assets, mainly quality office buildings, leased to triple A tenants at a sustainable rent, with a low risk in what regards the vacancy level. At the same time, investors′ interest also turned towards land for future developments, located in easily accessible areas, with proximity to the metro and other means of transportation being a principle criterion," said Adrian Mihaila, Associate Director of Capital Property Advisors.
Regarding the yields of business centers, Mihaila said that the level was similar to last year, eight-8.5 per cent, mainly because of investors′ cautiousness and banks′ reduced financing flexibility.
"We noticed a high interest in prime products, comparable to previous years. The interest in development has returned to the market, with several land plots being acquired this year for developing office and residential projects. This trend is because the difference between the asked and offered price has decreased considerably".