Corporate Finance House Group (CFH), an investor from the Middle East, has acquired the company that owns the Day Tower office building in Bucharest, developed by Greek investor Dimitris Mourkakos of Day Group and completed end of 2018.

The investor was advised by Savills on its first investment in the country while the developer was assisted by Crosspoint Real Estate.

Day Tower is located in downtown Bucharest, next to the Bucharest Courthouse and the National Library of Romania. The building has a leasable area of 10,800 sqm and was rented to Italian utility group Enel in 2018 for a period of 10 years. The developer was asking EUR 35 million for the project, Ziarul Financiar reported in July. The value of the transaction was not disclosed.

“This is our client’s first investment in Bucharest, predicted to be one of the top ten fastest growing European cities over the next five years. This follows an increasing trend we have witnessed in the market, of international capital targeting the yield premiums available in the CEE markets. Day Tower is a high-quality asset in the central area of the city which is well let and will undoubtedly benefit as the district continues to develop,” said Chris Gillum, Head of Offices, Savills Regional Investment Advisory EMEA.

“This transaction marks the entry into a new stage of development for the investment market in Romania. The transaction will further increase other investors and developers’ confidence in the positive fundamentals in Bucharest. The compression of prime office yields we have seen over recent years, as well as the capital diversification will most likely determine an increase of the liquidity and subsequently a re-positioning of the Romanian market, as a destination that can no longer be ignored by large investment funds,” added Codrin Matei, Managing Partner, Crosspoint Real Estate.

editor@romania-insider.com

(Photo source: Crosspoint)