Instead of the Porsche showroom in the proximity of Aurel Vlaicu metro station in Bucharest the businessman will develop at least 23 office floors. The area has attracted lately a lot of office developers, including Skanska, back on the Romanian market.
The land, with an area of 12,066 sqm was bought in May this year, and the company also has in plan the acquisition of another parcel of 2,124 sqm in the close vicinity for the project development.
The land is not subject to any financing and the development cost I estimated at EUR 60 million (with 10-15% of the amount representing the soft cost). For the rest of the sum, the company will loan EUR 50-55 million.
The office building will have the total built area of 48,732 sqm and over 23 floors, shows the admission document on the AIM market on London Stock of the company Globalworth Real Estate Investments, founded this year by Ioannis Papalekas.
The property, named Bucharest One, is owed through Corinthian Five SRL, where Papaleks has 100% of the shares through another company, and the completion is scheduled for 2015.
The same document mentions that the construction permit was obtained with a land use coefficient 4. The developer also obtained the approval of Metrorex for traffic solutions.
The valuation report drawn by The Advisers/Knight Frank out VAT, shows that the investment value in this project is EUR 43 million and will reach EUR 141.3 million at its completion. The valuation report drawn by Coldwell Banker, the investment value is EUR 46.4 million and the value at its completion is estimated at EUR 141.3 million. The net income from exploitation is estimated at EUR 12.5 million per year. (source: economica.net)
