Hercesa eyes EUR 7 mln office project near Piata Unirii in Bucharest

Spanish company Hercesa is likely to start the construction of a nearly 5,000-square meter office building on a plot of land it owns in Bucharest’s Piata Unirii Square, within an investment estimated at EUR 7 million. The developer already has an IT firm on the wire looking to rent half the space.

“We want to start construction on a new office building in spring on Mircea Voda street, near the Bucharest Tribunal. We will build 5,000 square meters and we’ve almost signed a deal with an IT firm that is looking to lease 3,000 square meters. With this contract we would find financial backers more easily. The total investment is estimated at EUR 7 million with 18 months for delivery”, according to Mauricio Mesa Gomez, chief of Hercesa’s operations in Romania.

He mentioned that the area is not known for modern office building and the rent should be at EUR 12/13 per month.

Hercesa has other plans for 2015, among them delivering the third phase of the Vivenda residential complex in Titan, with 100 apartments, an EUR 5 million investment. Hercesa obtained the necessary financing from a sale of 13,000 square meters of land in near the Basarab underpass.

“Our strategy has been to obtain funds from selling other assets. We’ve sold the land plot near Basarab underpass with a plan in mind to start phase three of Vivenda residence next year. We are working on the project and are looking to make it slightly different compared to the previous two. We want to build apartments that fall withing the RON 380,000 price range with 120 square meters so we can take advantage of VAT of percent”, Mesa added.

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In its first two phases, the Vivenda project included three buildings with 420 apartments. Most of them have already been sold, and the third phase will be placed on sale in spring with construction starting in the summer.

Hercesa entered the country in 2004, and is known primarily for renovating the Cismigiu hotel. So far, the Spanish company has invested EUR 150 million, Mesa mentioned.

Diana Petrescu