Telecommunications group Telekom Romania, part of Deutsche Telekom, has extended the deadline for the sale and lease-back of 24 real estate properties in Romania until August 17.

The full package includes 24 properties in Bucharest and seven other cities in Romania, but the group is also ready to sell a sub-package of 17 properties, according Telekom’s representatives. The company plans to lease back almost half of the properties.

“The full package has a total usable surface of 46,500 sqm and a starting price of approximately EUR 26.3 million (VAT excluded), set by independent evaluators. The sub-package of 17 properties has a total usable surface of 35,100 sqm and a starting price of EUR 21.6 million,” reads a Telekom announcement.

The winner of the tender will take over the contracts with the current tenants without any changes of the terms and conditions. In addition, Telekom Romania Communications will lease back certain areas of the buildings which host technical equipment, offices, and commercial spaces so that the transaction will not generate discontinuities in the company’s activity.

“The spaces leased back by Telekom Romania Communications represent 45% of the usable surface of the buildings for the 24 properties package and 48% for the 17 properties package. In addition, the spaces contracted by third parties represent approximately 17% of the usable surface of the buildings included in the 24 properties package, and 22% respectively of the buildings in the 17 properties package,” according to Telekom.

The sale and lease-back of the package of real estate properties are part of Telekom Romania’s strategy of capitalizing these non-core assets. The group plans to invest the money from asset sales into its telecom activities.

In 2014, Telekom Romania sold 28 of its real estate assets for EUR 11.6 million.

Telekom Romania’s revenues drop as the group continues to lose clients

Telekom Romania will invest EUR 160 mln this year in network upgrade

Deutsche Telekom launches Magenta One packages in Romania – how are prices compared to Germany?

editor@romania-insider.com