Creativ Invest Grup, the developer of the complex, went insolvent and the North Gate was subject to a foreclosure sale so the creditor Westdeutsche Immobilien Bank (Germany) could recoup some of the debt.
“We bought the project in a public auction for EUR16.8 million plus VAT. It is fully rented to Renault and is one of the best buildings in the area,” said Victor Capitanu, One United shareholder.
“Renault has just renewed the lease for five years but we expect it to leave in eighteen months or two years when it moves to Preciziei (west of the city i.e.). Even so, the area in is high demand. The building has never been empty in ten years.”
North Gate Pipera has a gross lettable area of almost 20,600 square meters. Buildings of more than 10,000 square meters in Pipera rent for about EUR6/square meter. The yield therefore is 8% to 9%.
In comparison, Smartown group of Israeli billionaire Teddy Sagi bought Swan Offices in Pipera for EUR30 million. Swan Offices has a gross lettable area of about 29,000 square meters.
The developer of North Gate was Creativ Investment Grup of businessman Marius Ivan, and got EUR48 million funding from Westdeutsche Immobilien Bank in 2008.
One United Properties has several residential projects either completed (188 apartments), under construction (340 apartments) or scheduled to be built in the coming years (484 apartments), such as One Floreasca Lake, One Herastrau Park and One Charles de Gaulle.
(English version by Loredana Fratila-Cristescu)