“We raised equity for both One Tower, and One North Gate. At One Tower we raised EUR20 million to complete the building and at One North Gate EUR5 million for 20% to upgrade the other office building for which we are in advanced talks with tenants,” said Victor Capitanu, cofounder of One United Properties.
The value of the office building therefore stands at EUR75 milion – EUR67 million from the calculation and EUR8 million the debt to banks.
The new co-owners include Ionut Dumitrescu, who bought 10% and is also a shareholder in Element Industrial, a developer of industrial space, along with other minority investors. One Unite Properties holds the remaining 70%.
“The value of the building is now EUR75 million and will be EUR95 million at an exit in one year – one year and a half from now, which means 15% profit per year. The target is to sell at a 6.5% yield.”
One Tower, part of the One Floreasca City project, is located in northern Bucharest and is 16 story tall, with a gross lettable area of 24,000 square meters. It should be delivered in the second quarter of 2020.
One Floreasca City also includes One Mircea Eliade residential complex with three buildings offering 247 apartments.
“One Tower rental is proceeding as usual; we’ve even saw a rise in demand because many companies want new offices. We’re over 50% rented.”
The developer is currently working on five other projects besides One Floreasca City – One Herastrau Towers, to be delivered this year, Neo Timpuri Noi, scheduled for the first quarter of 2021, Neo Mamaia, to be completed in the third quarter of 2020, One Verdi Park, the mixed-use project on Barbu Vacarescu, which is at the foundation stage and One Cotroceni Park, which is at the same stage, as well.
(English version by Loredana Fratila-Cristescu)