Romanian Do-it-Yourself retailer Dedeman has recently agreed to buy the AFI Park office compound in Bucharest, in a deal worth EUR 164 million, according to Colliers International Romania. Dedeman has signed a pre-agreement to buy the first three buildings of the AFI Park compound, with an option to buy the 4th and 5th buildings as well, from seller AFI Europe. The transaction value covers all five buildings, with a total of 70,000 sqm, 98% leased.

Dedeman has signed a pre-agreement to buy the first three buildings of the AFI Park compound, with an option to buy the 4th and 5th buildings as well, all from seller AFI Europe. The transaction value covers all five buildings, with a total of 70,000 sqm and 98% leased.

It is 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, according to Colliers International, which advised the buyer. AFI Europe was also advised by law firm NNDKP and by lawyer Bianca Stamatoiu, while Dedeman, by law firm Popovici, Nitu & Asociatii.

This is AFI’s first exit in Romania. “An important milestone from our point of view as an international developer having already invested more than EUR 500 million 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,” said David Hay CEO AFI Europe Romania.

AFI Park hosts tenants such as Microchip Technology, Electronic Arts, Endava Romania, Cameron US, SII Romania, ORTEC Central & Eastern Europe, FotoNation, Telus International, Veeam Software, and SecureWorks.

This is Dedeman’s first commercial real estate investment, and it plans to invest more in the sector, according to Dragos Paval, CEO of Dedeman.

Dedeman is the leader of the Romanian DIY market and one of the largest companies in Romania. It runs 45 stores and had EUR 1 billion in sales in 2015, according to latest available data.

AFI Europe is a subsidiary of AFI Properties and one of the leading real estate development, management and investment companies, operating in Central and Eastern Europe since 1997. The company has been active in Romania since 2005. It has developed and is managing the AFI Palace Cotroceni shopping mall in Bucharest, some 90,000 sqm Gross Lettable Area, as well as AFI Palace Ploiesti, a 35,000 sqm shopping mall in Ploiesti, near Bucharest.

AFI Park is adjacent to the AFI Palace Cotroceni Mall. The developer completed the last two buildings in April last year. It is currently working on AFI Brasov, which includes a 45,000 sqm GLA shopping mall and 25,000 sqm GLA office project. AFI is also working on a 56,000 sqm office project AFI Tech Park, located in close proximity to the J.W. Marriott hotel and the Romanian Parliament.

editor@romania-insider.com