HSBC’s European Active Real Estate Fund has completed its first property deal in Romania.
The fund has purchased a 50% stake in the Expo Market Doraly trade counter and warehouse park in Bucharest, Romania, for €104m (£82m).
The fund has closed with €450m (£355m) of equity.
The scheme comprises 592,000 sq ft of commercial space including showroom, warehousing, and has a further 376,740 sq ft at various stages of development. There are currently about 800 tenants at the park, which is on both sides of the DN2 highway, eight kilometres east of Bucharest.
Matthew Hunt, fund manager at HSBC’s Specialist Fund Management, said: ‘The site is already well-established among the local wholesaler community not just in Bucharest but further afield within Romania too, and we intend to help our partners realise the full potential of this strategically located park, which will improve further on completion of planned ring-road improvements to provide an exceptional trading environment’
‘This acquisition is very much in line with our strategy for investing in real estate-focused assets in the wider Balkan region, and will hopefully be the first of many value-added deals we complete