RREEF, the real estate investment arm of Deutsche Bank, has acquired several commercial and residential assets in Bucharest for €341 million ($538 million). The transaction is the largest real estate acquisition in the Romanian market, according to the firm.
The assets are located in the northern part of Bucharest, in the vicinity of the Pipera area, and are currently under construction with a total buildable area of circa 237,000 square meters. They are comprised of two office buildings and a two-building residential block, as well as three underground levels with parking and storage.
Under the terms of the transaction, Ioannis Papalekas, the developer of the project, will participate in the acquisition as RREEF’s 22% JV partner.
“This landmark transaction constitutes RREEF’s largest single investment in Central and Eastern Europe,” said RREEF Director Dimitris Raptis in a statement. “Through our partnership with Mr Papalekas, one of the most reputable and experienced developers in the Romanian market, we have the foundations required to maximise the value potential of the assets as well as further source additional investment opportunities in Romania over the coming years.”