HP Romania renews lease on Novo Park space

HP’s Romanian subsidiary has renewed its lease on 26,000 sqm in Bucharest’s Novo Park office project for a 10-year period, announced Liviu Tudor, the president of Genesis Development, the project’s developer. HP has been a tenant in NovoPark for the past 8 years. This makes it the longest lease contract on the local office market, according to company data.

The rent paid by Novo Park tenants is in line with the Pipera average, between EUR 12 – EUR 14/sqm/month, said Tudor. To this is added the service charge which amounts to between EUR 3 – EUR 3.5/sqm/month. Asked during a press conference about the discounts tenants are given, Tudor said these are generally offered for lease contracts which extend over 5 years and are usually between 3 and 4 percent.

Genesis Development, which in addition to Novo Park also owns the West Gate office project in western Bucharest and the West Gate Studios residential project, estimates it will report revenues worth EUR 32 million this year, in line with 2012 results, said Tudor.

Novo Park and West Gate have a combined leasable area of 150,000 sqm.

This year Genesis Development has invested EUR 800,000 in the Novo Park project in infrastructure works and various upgrades.

Novo Park comprises 7 buildings with a total leasable are of around 75,000 sqm. Occupancy rate is above 98 percent, according to company data. In addition to HP, other tenants in the complex are Procter & Gamble, Mondelez Romania, Garanti Romania, Ringier, Sodexo, Infineon Technologies, Yokagawa, Luxoft and UniCredit Business Integrated Solutions. It is located in northern Bucharest close to the Pipera subway station.

Read more about Liviu Tudor’s plans and perspective on the local real estate market in next week’s print edition