Austrians have dominated the Romanian real estate market in recent years. Amid acquisitions worth above 400 million euros so far and planned projects of around 500 million euros, Austrian investments made on the domestic real estate market could reach one billion euros soon. The first big transactions were sealed in 2003, when two Austrian investment funds, CA Immo and Europolis, purchased the most important office buildings at that time, Opera Center and Europe House. Since then, Austrian investment funds have been involved on all the segments of the real estate market.
Opera Center, one of the first business centres in Bucharest, was sold for some 26 million euros by CA Immo in the first half of 2003. Later on, the Austrians along with Avrig 35, a company controlled by businessman Alexandru Hergan, built the Charles de Gaulle Plaza building, which they sold to Accession Fund investment fund, controlled by Germany's GLL Real estate company, for 80 million euros this year. This is the biggest real estate deal concluded on the domestic market. CA Immo's biggest acquisition on the domestic market was that of Bucharest Business Park building, for some 60 million euros, in 2005. Europe House, also known as the Orange building, was in its turn bought by an Austrian investor, Europolis, for almost 30 million euros, in 2003.
After acquiring Europe House office building, Europolis also got involved in the logistic project worth 65-75 million euros the Cefin company is developing. In the wake of the acquisition, the Austrians announced they would invest a further 70 million euros to expand the logistic park.
Immoeast, the unit handling the Central and East European operations of the biggest Austrian fund, Immofinanz, officially entered the Romanian market in 2004, when it took over Iride Business Park for 63 million euros. Since then, Immoeast has particularly focused on acquiring office projects.
Two of these buildings were developed by the Israeli-held Delta Intensiv Trade and are rented on long term by Vodafone Romania mobile telephony operator.
Another office building acquired by Austrians was Bucharest Corporate Center (BCC), the current headquarters of Generali insurance firm, with the total value of funds entailed by the four acquisitions topping 130 million euros. This year, Immoeast has entered into several partnerships with domestic developers, tapping into all the segments of the real estate market.
Sparkassen Immobilien, the real estate investment arm of Erste Austrian group, has entered the domestic market this year, by acquiring Novotel hotel, for almost 30 million euros. Other projects announced by Sparkassen domestically are related to the commercial segment, with the Austrians to invest 150 million euros in Sun Plaza, and to office buildings, with 80 million euros to be invested in the construction of a building close to Piata Victoriei.
The main Austrian real estate players
Immofinanz teamed up with local developers for projects of some 200m euros after acquiring 4 office projects for 130m euros
Europolis paid over 100m euros for Europe House and Cefin Logistic Park and plans to invest another 70m euros to expand the park
CA Immo bought Opera Center and Bucharest Business Park for 90m euros and sold Charles de Gaulle Plaza for some 40m euros
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