“We would like to sell Day Tower for at least EUR35 million but have no firm buyer yet, only talks,” said Dimitris Mourkakos, cofounder of Day Group.
Day Group plans to continue investments in office space projects, after having focused on residential development so far, the latest of which is Day Residence in Dristor area of Bucharest.
Considering the 10,800 square meters of lettable office space and the 800 square meters of retail space on the ground floor, if the sale closes at EUR35 million, Day Group would seal the first deal at a 6.5% yield in Romania in 12 years.
Day Group is looking at two new potential office space investments in the center of Bucharest, one of which in the Unirii area and both in landmark locations. Each will have about 15,000 square meters of lettable area. The reason for the investment is that many companies seek to relocate to the city center. Day Group will direct 80% of its investments to office space projects and 20% to residential developments. Even though residential developments are more profitable, the office space market is more stable, Dimitris Mourkakos said.
(English version by Loredana Fratila-Cristescu)