S IMMO AG acquires EXPO Business Park in Bucharest
With the purchase of the EXPO Business Park in Bucharest, the publicly listed S IMMO AG has added another high-quality office property to its portfolio. Among the tenants of the Class A office property with a main usable area of roughly 41,500 m² are the Dutch banking and financial services company ING and Romania's largest pharmaceutical group A&D Pharma.
The three-part office complex, which has excellent public transport connections to the city centre as well as to both airports, is located in the office district Center West, adjacent to the Bucharest exhibition grounds. Other office and resdential buildings are situated in the immediate vicinity of the EXPO Business Park, with perks including access to local parks and great proximity to the metro station. Moreover, the area will be further boosted in the medium term by additional projects of various purposes (hotel, office, flats) that are in the planning and construction stages. The properties, completed recently in 2019, meet the highest sustainability standards and have received BREEAM Outstanding and WELL Health & Safety certifications.
"We were convinced not only by the EXPO Business Park's high rental occupancy and earning power, but also by the sustainable quality of the building and the outstanding certifications. With this purchase, we are expanding our portfolio with yet another high-end property and strengthening our position in Bucharest, currently one of the most important office markets in CEE. In addition, the significant rental income will have a positive impact on our cash flow and S IMMO's overall result," comments Herwig Teufelsdorfer, CIO of S IMMO AG, on the purchase.
The closing of the share deal is foreseen for the second quarter of 2022. The parties have agreed not to disclose the purchase price.