The transaction, valued at EUR 6 million, represents roughly 20% of all assets held by One North Gate SRL. The buyer is Element Investitii Imobiliare S.R.L., company owned by a local group of investors.
The asset sold to Element Investitii Imobiliare S.R.L. represents an office building with Gross Leasable Area (GLA) of 4,500 sqm, spread across 4 floors, and 131 parking spaces. The building, known as One North Gate, is currently leased out in proportion of 80%.
Following this transaction, One North Gate S.A. retains a second building within the development, which will be transformed into a residential development called One North Lofts. The capital obtained from the asset sale will be reinvested in the development of One North Lofts, which will host 137 apartments over 20,000 sqm of Gross Buildable Area (GBA) and 237 underground and aboveground parking spaces. The Gross Development Value (GDV) of One North Lofts is EUR 30 million. As of March 31st, 2023, 50 of the 137 residential units at One North Lofts were pre-sold since the reconversion announcement in October 2022. The delivery of One North Lofts is estimated for Q2 2024.
The sale of One North Gate office building aligns with the Company's strategy to consolidate its office portfolio around large, landmark mixed-use and urban regeneration developments, such as One Floreasca City and One Cotroceni City. After the sale of One North Gate office building, the Company's office portfolio GLA totals 118,000 sqm, and it includes One Tower, One Cotroceni Park Office Phase 1 and Phase 2, and One Victoriei Plaza. Together with the retail component, One United Properties’ commercial portfolio, which also includes Bucur Obor and One Gallery, will reach a GLA of approximately 160,000 sqm.