The land plot was bought from Italy’s group Nusco owned by the family of the same name, whose portfolio includes most land plots on old industrial platform Pipera.
The deal can be valued at around EUR20 million, taking into account a price of around EUR500/square meter, and the British businessman plans to start works for the project, called Oregon Park, by yearend.
According to Neale, three 6-storey buildings with a 70,000-sqm rentable area are set to be raised. Works for the first two buildings with an overall area of 45,000 square meters will start by yearend and are scheduled to end in mid-2016. Neale did not provide any details on the value of the acquisition or the estimated cost of the project.
Portland Trust is one of the first foreign investors that started developing offices in Bucharest in the late ‘90s. Opera Center was the first building to be completed. Subsequently, Neale developed Bucharest Business Park and the two office compounds were sold to Austria’s CA Immo.
Later, Portland was one of the first investors in Floreasca-Barbu Vacarescu area, where it raised Floreasca Business Park project sold to South African NEPI for over EUR100 million. In early 2014, the group also completed Floreasca Park in the same area, the new headquarters of Oracle group.
Oregon Park, named after the American state where Portland city is located, is virtually an extension of Floreasca Park, located nearby.
For office leasing, Neale is looking at IT and BPO companies, which fill most spaces in Floreasca Park as well.
Barbu Vacarescu-Floreasca area, which is clearly becoming Bucharest’s main modern office hub, according to Neale, has seen office spaces with an area of around 200,000 square meters being raised in recent years. Sweden-held Skanska and Greek Ioannis Papalekas are also erecting buildings with an overall area of around 80,000 square meters here.
In the deal with Nusco, Robert Neale was assisted by lawyer Theodor McCann, partner of Constantinovici, McCann si Asociatii law firm, as well as by The Advisers Knight Frank consultants.
Neale hopes to seal a major pre-rental contract until works start and also plans to secure bank funding for Oregon Park project.
Bucharest’s office market, made up of over two million square meters, is giving signs it is slightly recovering in terms of space demand, but rent pressure from companies is maintaining and the vacancy rate still hovers above 15%.
(English version by Catalina Apostoiu)