Property in Romania

Fabian Romania buys office building in Bucharest for about 60 mln eur

LONDON (Thomson Financial) - Fabian Romania Property Fund Ltd said it has agreed to buy a class A office building in North Bucharest for about 60 mln eur.

The real estate investment trust said it will initially pay 12.25 mln eur for the building with a gross area of about 44,000 square metres, 5 mln eur of which has already been paid in the form of a secured loan.

The company said it will pay the final instalment based upon a forward purchase yield of 7.4-7.8 pct applied to rents achieved, on completion of the building and estimates the total equity requirement for the project to be about 12 mln eur.

Fabian Romania said the building is being developed by a local developer and it expects to complete construction in the second quarter of 2009.

Date posted: April 1, 2007