Primavera Development company, which has built, rented and soldone of the biggest office parks in the capital city, S-Park ofnorthern Bucharest, has been seeking, for more than a year, tenantsfor a ten times smaller building located in the centre ofBucharest, where until two years ago office space would be rentedas soon as work on it started.
"Office market conditions were intricate last year. During theentire 2009 we looked for tenants for the office building inFrumoasa - Calea Victoriei area, but we did not find any, so thatwe stopped construction works after we finalised the structure. Wehope the office market starts moving this year since a lot ofcontracts expire," Daniel Tanasoiu, one of the firm's managers andshareholders, told ZF.
Rents stand at 14-14.5 euros/square metre/month, while the buildinghas a 3,200 square metre area. S-Park, a project of above 30,000square metres, had major tenants such as banks, telecom firms, andbrewers at the time of completion.
"We can rent it to several tenants. Should we sign a pre-lease, thebuilding would be finalised in six to eight months," Tanasoiusaid.
Primavera Development in 2007 collected around 104.5m euros fromthe sale of S-Park project, and the money was largely directed toland acquisition. The firm owns several plots of land in Bucharestfor office and housing projects, as well as a plot of land inSibiu, for the construction of a shopping centre.
On another note, on the residential market, Cefin Real EstateAlpha, the developer of Cortina Residence housing complex ofBucharest, owned by Cefin group and Heitman US investment fund, wasofficially declared insolvent in the wake of a decision by theBucharest Court of Law, which appointed BDO Business Restructuringas the legal administrator.
Cefin Real Estate Alpha was due to develop a project made up of 270apartments in Herastrau park area, but construction works werehalted at the moment debts already amounted to 24m euros. "Themajority shareholder in the project, Heitman investment fund,decided to withdraw. (...) A number of 114 apartments were sold,"Stefano Albarosa, Cefin CEO, told ZF.
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