Floreasca Park was one of the best performing assets in GLL local portfolio and it represents one of the best known office buildings in Bucharest. The challenge for Cushman & Wakefield Echinox Capital Markets team has been to meet our client’s expectations in setting the standard of the market with this transaction. The asset is core office building in Bucharest new CBD (Floreasca – Barbu Văcărescu area), with a strong tenant mix, Oracle being the anchor tenant. During the sanitary crisis that overlapped the final stages of the transaction, we faced several challenges related to uncertain circumstances, the impossibility to organize physical meetings and questions about the future evolution of the market.
We contacted a wide range of regional and international investors: already present on the market, looking to enter the market and big players that din not necessarily had Romania on the radar. We ensured that bidders were aware of the positive state of the building based on a substantial CapEx plan, we supported the contracted rent and ensured that investors felt comfortable to not discount the rent in the under-writing of lease reversions.
We created a highly competitive climate amongst the bidders which led to a joint-venture between the top two bidders, this leading to a maximum price achieved for the property. We successfully supported GLL in the sale of the property to Resolution/Zeus, their first direct property investment in Romania, for a very competitive price despite difficult circumstances, pandemic related. We intermediated a benchmark transaction for the local office-market and attracted a new, very strong international investment fund in Romania.