Morgan Stanley, together with David Hay, former Chief Executive Officer of AFI Europe, is reportedly exploring the sale of the America House office building in Bucharest’s Victoriei Square for approximately EUR 100 million, according to market sources cited by Ziarul Financiar. 

The potential divestment comes amid rising office rents and declining vacancy rates in Bucharest’s prime business districts, which are once again attracting institutional investor interest.

The American investment bank and Hay acquired America House in 2019 for around EUR 90 million from French asset manager AEW Europe.

Following the acquisition, the owners initiated a EUR 10 million refurbishment and modernisation programme, which was completed in the first half of 2022. The upgrades enabled the property to command rents of EUR 20 per square meter as of 2022, reflecting renewed demand in the central business district.

Originally developed by GTC in 2006, America House was sold the following year for EUR 120 million with a record yield of 5.6%, underscoring the building’s strategic appeal in the heart of Romania’s capital. Its location in Victoriei Square, described by Hay in 2022 as the “hottest” office market in Bucharest, continues to be a key factor in its valuation and attractiveness to potential buyers.

iulian@romania-insider.com

(Photo source: Facebook/America House)