Speedwell has mandated Knight Frank to sell the office buildings and sports center of Record Park, a mixed-use project (office, sports center & residential) situated in central Cluj-Napoca (next to Dedeman’s The Office). The sales mandate includes three separate buildings: two office buildings – a new A-class office building next to a renovated historical building of the former imperial stables – and a new stand-alone sports center with a pool.
The total rentable area will reach 14,263 square meters, 207 underground parking spaces and 291 square meters of underground storage.
“The property has an unexpired lease term of more than 5 years, without break options, and an estimated annual NOI (net operating income) in excess of ~€2,7M when fully leased. Transaction is likely to be structured as a share deal with all three buildings owned by the same company”, says Valentin Lupu, Associate Director Capital Markets Division, Knight Frank Romania.
Besides the sports center which is already completed and functional since June 2019, the other two buildings are expected to be delivered in the second half of 2020. The residential units will be delivered simultaneously with the office buildings but will not be subject to this transaction.
“Record Park is the model for all current and future Speedwell developments, focusing on inner-city locations, bringing together office and residential functions with retail amenities at walking distance from the city center and main transport means. This mix has been created to benefit both tenants, in attracting qualified workforce, and the employees, being able to live at working distance from work and leisure, while still having a clear split in functions from an investors’ point of view. This proves to be a success formula ensuring the buyer a long-term guaranteed occupancy”, stated Didier Balcaen, CEO of Speedwell.
While the subject property has already reached a pre-lease of 84%, the remaining ~2,500 sqm offices will be rented by the completion of the project. The sports center is fully occupied by World Class (2,090 sqm). The renovated historical building is leased by restaurant operator Stradale and the co-working operator Stables. The new office building has two anchor tenants: MHP Consulting (5,349 sqm) and Yardi (3,450 sqm).
“Romania is one of the leaders when it comes to economic growth in Europe, after nine successive years of GDP growth Romania will become a magnet for foreign and domestic investors in real estate assets, thanks to highest yields in CEE. Cluj Napoca is speeding up after Bucharest, delivering last year investment office transactions that exceeded 200 million €”, completed Roxana Bencze, COO Knight Frank Romania & Hungary.