Press Reviews

Dedeman buys The Office in Cluj-Napoca from NEPI Rockcastle and Ovidiu Sandor

Business Review | April 26, 2019

PROPERTY
Dedeman keeps buying real-estate properties. This time it has signed the contract for taking over The Office, in Cluj-Napoca, from developers NEPI Rockcastle and Ovidiu Sandor. The value of the transaction was not made public, but it is evaluated at EUR 100 million and it is the first from a series of transactions between Dedeman and NEPI Rockcastle.

The Office in Cluj-Napoca

Dedeman was advised by Popovici Nitu Stoica and Associates, who were on Dedeman side for the acquisition of The Bridge and Cemacon in the past.

“We are delighted that the Office project will be taken over by a strong entrepreneurial group with Romanian capital. It is a guarantee for the management and development of the project and is also a long-term commitment to our tenants who will have a reliable partner. The conclusion of this transaction will allow us to focus on the current investments in ISHO and to broaden our horizons in order to identify new investments,” says Ovidiu Sandor.

“The marketing of The Office is a first step in the sale of assets that are no longer part of Nepi Rockcastle’s current strategy of focusing on dominant business centers. The Office is a great project and we are glad it will remain the property of an investor dedicated to Romania’s development plans. We have also noticed the proof of liquidity for the major regional markets in Romania through the interest shown by investors for The Office. The office portfolio with which we stay in Bucharest and Timisoara is also very interesting on the market, so we analyze the opportunity to sell this portfolio in the next period,” declares NEPI Rockcastle representatives.

The Office was launched in full economic crisis, being one of the few developments in that period, completed in three phases and completed in 2017. With a rental surface of nearly 60,000 square meters and a 100 percent occupancy rate, the project has become a landmark for Cluj-Napoca and Transylvania being the first office in the region that truly meets the international standards for Class A in terms of concept, size, quality, facilities, parking and energy efficiency. The Office has one of the highest green building certifications nationwide, BREEAM Excellent.

Dedeman’s interest in The Office Cluj-Napoca, the largest class A office complex in Cluj and one of the largest investments made in recent years in Transylvania, strengthens the idea that secondary cities offer real business opportunities.

“This transaction marks another important step in our investment strategy. The Office Project is an ideal choice for Dedeman and has convinced us both by locating it in one of the country’s most important and developed cities, as well as by the high quality and sustainability standards it meets. By continuing to build on the local property market, we also want to strengthen the trust of all Romanian entrepreneurs and inspire the courage to support their great aspirations,” says Dragos Paval, President Dedeman.

JLL Romania, Reff Romania, has also played an important role in materializing this transaction and has assisted the vendors and Popovici Nițu Stoica & Asociații, who has assisted the buyer. Colliers International has provided additional support for NEPI Rockastle and PeliFilip for Mulberry.

NEPI Rockcastle is the largest real estate investor in Central and Eastern Europe. NEPI Rockcastle is listed on the Johannesburg Stock Exchange (JSE) and Euronext Amsterdam and is rated “Investment-grade” by Standard & Poor’s (BBB) ​​and Fitch (BBB) ​​rating agencies. With a portfolio of more than 5.9 billion euros, NEPI Rockcastle is present in 9 countries in the region and holds a strong position on the Romanian market through its own commercial centers (including Mega Mall, Promenade, City Park Constanta, Shopping City Sibiu) and office portfolio in key locations in Bucharest and in the heart of Timisoara.

Ovidiu Şandor is an entrepreneur from Timişoara, founder and CEO of Mulberry Development real estate development company, known nationally for the successful development of City Business Center Timişoara, The Office Cluj Napoca and ISHO, a mixed, award winning real estate project developing in Timisoara, consisting of 1,200 apartments, 50,000 sqm of new generation offices and a mix of services.

Dedeman is a Paval Holding Group, which operates on the Romanian market in areas such as retail, real estate, industry, agriculture, logistics and the capital market. Dedeman has been a leader in the DIY market since 2010, and currently has a network of 49 stores nationwide and over 10,000 employees.

By: Aurel Dragan
Source: Business Review