Investment fund NEPI plans to turn a historic villa downtown Bucharest into the centerpiece of a futuristic office compound. The fund plans to revamp the 300-sqm Oromolu villa in Victoriei square in Bucharest and build behind it a 6,500 sqm office center, with an estimated investment of EUR 15 million.

The villa, built in 1927 by Mihai Oromolu, a former governor of Romania's central bank, was affected in 2009 by a fire and needs revamping. It is surrounded by a 4,500 sqm plot, parts of which will house the new three-floored office building, and where a public area will be organized.

NEPI took over the property from real estate developer Avrig 35, which failed to pay a debt and used the land plot and the villa to cover it. The villa and the land plot were last year evaluated at some EUR 13 million.

"The real estate investor already has the urban development certificate, and, unlike 'other investors would try, we don't want to build an office tower,” said Martin Slabbert, CEO of NEPI. He hopes to start work this year and end them within a year. The architectural project is signed by architect Dorin Stefan.

The investor does not plan to make a profit following this project: "It is not a property we wanted and it is not the kind of project we usually develop. We became owners of the building following a debt from Avrig 35. We had to decide what to do with it, because it requires restoration. We will not make money from this project. In the end we want the value of the project to be the same as the investment, and show it is not a real estate speculation,” concluded Slabbert.

NEPI has been among the most active real estate buyers in Romania in recent years. In a recent deal, the fund, listed on the Bucharest Stock Exchange, has taken over the Lakeview office building in Bucharest for EUR 62 million from AIG Lincoln and businessman Dinu Patriciu.

NEPI also owns Floreasca Business Park office compound, Pitesti Retail Park, Promenada Braila Mall and City Business Center Timisoara. NEPI also owns smaller office areas in second tier Romanian cities, with all office projects in Romania – 20 properties - valued at some EUR 180 million, as well as EUR 17 million worth of industrial projects. The full list of properties is here.

editor@romania-insider.com

(photo source: NEPI)