Company founder Robert Neale said he wants to continue the Floreasca Park project because there is high demand for office space in Bucharest. He also said he was pleasantly surprised to see that a large number of leading IT companies operate in Bucharest and keep hiring new staff.
Neale added that large corporations will continue to move from old to new green office buildings in order to cut costs.
Portland had bought from businessman Gigi Becali the two hectares of land needed to develop the two office buildings in Floreasca Park, which cover a total 37,500 square meters.
According to Neale, the two buildings are 75% leased and the only tenants known so far are Oracle Romania, which leased 25,000 sqm, and BASF which leased some 2,000 sqm.
Investments in Floreasca Park amount to EUR70 million and are financed by Banca Comerciala Romana. The project is due for completion in November this year and Portland targets an occupancy rate of 90% by November.
The Floreasca Park project will be BREEAM (BRE Environmental Assessment Method) certified, which is a must in view of developing a project to be further sold to a major investor, according to Neale.
Portland Trust built several office projects in Bucharest, which were sold after completion. Austrian real estate firm CA Immo bought Opera Center I and II, as well as Bucharest Business Park, while NEPI acquired Floreasca 169A.
Portland Trust was established in 1997 by Robert Neale and Mark Vydra to develop real estate projects in Central Europe. In 1999, the company was acquired by American group Apollo Real Estate Advisors.