The company, listed since July this year on the secondary AIM market on London Stock Exchange, bought another company also founded by Ioannis Papalekas, Global Asset Managers (GAM).
City Mall, to be reconverted in City Offices, will offer at the completion of the works a commercial building and a multi-story parking. The completion of the works is scheduled for the end of this year. The building will have 27,155 sq m built area and six floors, with retail spaces in ground floor and office spaces in top floors.
The property is partially rented and advanced negotiations are currently conducted in order to rent the rest of the vacant space to a sole tenant. The duration of the signed contracts is 5, 10 and 15 years, with rents varying from EUR 12 to EUR 65/sq m. The main tenants are Mega Image, Vodafone, Pharma Vision, Billa, Max Bet, Piraeus Bank. The acquisition cost, as mentioned in the prospect for Stock admission, is EUR 37 million.
Floreasca 1 is an office project situated on the Floreasca lakeside and will have a built area of 4,711 sq m on nine floors. The project, already erected at structure level, was bought in January 2013 by Victoria Ventures SA, a company where Papalekas holds 60%. It is expected that the permits for development to be obtained by December 2013 and the completion of the works is scheduled for the end of 2014.
The acquisition cost of the part owned by Papalekas in the project was EUR 2.6 million, while the investment value for the building’s development is EUR 3 million, to be covered by a loan. The total value of the debt is estimated at EUR 4-4.5 million.
Herăstrău 1 is another office project to be developed on Nordului St., across the road from Herăstrău Park. The building will have a built area of 12,166 sq m and seven floors. Papalekas owns 100% the plot through his company, while the acquisition cost was EUR 6 million. The project is in design phase, currently waiting the construction permits and it is scheduled for completion in 2015. The investment for the development is estimated at EUR 11.25 million, with another 15% in soft costs. The land acquisition was supported through two loans of EUR 2.9 million. The total financing will reach EUR 15 million at its completion.
GAM also signed a contract for the acquisition of Timişoara Airport Park (TAP). In order to complete the transaction, the approval of Valeo is waited, the sole tenant of the building. The property was partially developed, with two phases completed in 2011 and is fully rented to Valeo for 15 years, the rent varying from EUR 3.6 to EUR 7/sq m. Both phases include a building on 27,474 sq m built area. A new phase is to be developed in the future, with 12,000 sq m, to be rented to Valeo too.
The shares of the company Asset Managers will be bought for EUR 14 million. The development of the third phase will imply EUR 3.5 million investment, scheduled for completion in 1Q 2014, and the property will be subject to a loan of EUR 10-12 million. (source: economica.net)
