Real estate developer AFI Europe Romania has signed in June a letter of intent for the sale of three office buildings that it owns in Bucharest.
According to a company report, AFI wants to sell AFI Park 1, 2 and 3 based on a yield of 7.75 percent, with the option of selling AFI Park 4-5 to the same buyer at the same yield.
“Accordingly, the expected sale price for AFI Park 1-3 is EUR 92.7 million, and if this transaction will be completed then the Company will book profit of EUR 6.5 million (before taxes) and will generate a cash flow of EUR 46.7 million,” said AFI in the report.
The three offices buildings of AFI in Bucharest are fully leased, while AFI Park 4-5 has an occupancy rate of 70 percent.
AFI Europe has been operating in Romania since 2005. The company owns the commercial centers AFI Palace Cotroceni and AFI Ploiesti and will build a shopping mall and an office building in Brasov city.
AFI Europe Romania will also developed an office complex called TECH PARK in Bucharest that will have a gross leasable area of 50,000 sqm. The company is also looking to develop its first residential project in north-western Bucharest called AFI City.
AFI Europe Romania said this week that its net operating income went up by 13.1 percent to EUR 22.2 million in the first half of this year compared to the same period of last year. For AFI Palace Cotroceni shopping mall, the net operating income amounted to EUR 16.5 million, up by 8.6 percent compared to last year.
From AFI Park 1-3, the developer got a net operating profit of over 3.8 million in the first semester, up by 48 percent compared to the same period of last year.