GTC Romania, a subsidiary of Globe Trade Centre S.A., has sold a 100% interest in America House to a fund managed by IXIS AEW Europe. The transaction was based on a valuation of EUR 120 million for America House.
GTC Romania, through its subsidiaries, has sold a 100% interest in America House, a Class A office building located in the center of Bucharest. The buyer, PBW II Real Estate Fund S.A., is a real estate fund managed by IXIS AEW Europe (IAE), a leading European real estate manager. IAE is a subsidiary of IXIS Asset Management Group, which together with the North American-based AEW Capital Management is responsible for approximately EUR 30 billion of gross assets under management.
The transaction was based on a valuation of America House at EUR 120 million, which implies a yield of 5.55%. The transaction sets a new benchmark for the valuation of commercial property in Romania, indicating that strong yield compression is maintaining its momentum.
Jones Lang LaSalle acted as commercial and marketing adviser for GTC in this transaction.
America House is located in a prestigious business district of Bucharest next to Victoria Square, adjacent to the government headquarters, at the intersection of two metro lines. The building offers 27,000 sq m NRA and has attracted such renowned tenants as Deloitte, Cosmote, S&T, Ericsson, and the Japanese Embassy. The location of the building and the covenants in the lease agreements make America House a prime investment-grade product in Romania.
The sale of shares in America House is part of GTC’s strategy to further diversify its property portfolio both in terms of sector and geographical spread. Today GTC’s portfolio of projects under development in Romania comprises approx. 500,000 sq m of net commercial and residential space (counting only GTC’s equity share).