Corporate Finance House Group (CFH), a Middle Eastern investor, has acquired the holding structure owning Day Tower office building in Bucharest, developed by Dimitris Mourkakos of Day Group. The asset is a brand new, grade A office building, located in close proximity to the historic centre of the city, the National Library of Romania and Bucharest City Courthouse, and the Palace of Parliament Building. The property, which was completed in 2018, is certified with a BREEAM rating of “Excellent" and is let to Enel. The purchase price was not disclosed.
Chris Gillum, Head of Offices, Regional Investment Advisory EMEA, Savills, said: “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.”
Codrin Matei, Managing Partner, Crosspoint Real Estate, said: “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.”