The new office building project will be developed on the site of the former Porsche Aviatiei showroom in Bucharest, which was relocated to Porsche Nord showroom. Following the relocation, German Porsche group decided to sell the 10,000-sqm land plot to Papalekas in a deal estimated at nearly EUR8 million.
“The development and permitting process is on track. The demolition of the existing buildings on site has been completed and a general contractor is about to be appointed. The building permit (being the main condition in the relevant Acquisition Agreement) is expected to be obtained by January 2014. Debt financing negotiations are progressing and financing terms have been agreed with a major European financial institution. On the letting side, negotiations with multinational companies for approximately 60% of the space are at an advanced stage,” Globalworth Real Estate Investments, owned by Ioannis Papalekas, said in a report Friday.
Globalworth Real Estate Investments plans to construct a 23-story office building which will stretch onto a 48,700-sqm built area. The investment is estimated at EUR60 million. The office tower is due for completion in 2015.
“The Company is in advanced negotiations with a number of sellers in Romania and in Greece to acquire or develop (on a pre-let basis) high quality assets,” according to the report.
Globalworth Real Estate Investments owns seven real estate projects in Bucharest, among which two office buildings, namely, Tower Center in Bucharest’s Piata Victorie Square and City Offices (former City Mall), residential compound UpGround which comprises two apartment buildings, a logistic project in Timisoara and three plots of land in northern Bucharest where it plans to construct office buildings. Globalworth’s total assets amount to nearly half a billion euros.
End-July, Globalworth Real Estate Investments managed to raise EUR53.6 million by listing its ordinary shares on the AIM Market of the London Stock Exchange and the funds were to be invested mainly on the Romanian market.
Papalekas set up Globalworth Real Estate Investments in February this year targeting to list it on the AIM Market and continue real estate investments.