Morgan Stanley reportedly mulls over a EUR 100 million withdrawal from Bucharest's America House.
Uncensored Perspective:
Morgan Stanley and ex-CEO of AFI Europe, David Hay, are rumored to be thinking about selling the America House office building in Bucharest's Victoriei Square for around a cool EUR 100 million, according to industry insiders speaking to Ziarul Financiar.
Now, here's the skinny: Rising office rents and falling vacancy rates in Bucharest's premium business districts have once again caught the attention of institutional investors. And, well, who can blame them?
This potential divestment comes after Morgan Stanley and Hay purchased America House in 2019 for roughly EUR 90 million from AEW Europe. They then decked out the property with a EUR 10 million modernization and refurbishment project, wrapping it up in the first half of 2022. Now, in 2022, the property's rent stands at a handsome EUR 20 per square meter, a clear indicator of the area's booming demand.
Originally built by GTC in 2006 and sold for EUR 120 million the following year with a record-breaking 5.6% yield, America House's prime spot in Victoriei Square grants it an unrivaled strategic and central position in Romania's capital. In fact, Hay himself dubbed this location the "hottest" office market in Bucharest back in 2022. Sound like a profitable deal to you? It does to us!
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(Photo credit: Facebook/America House)
The rumor of Morgan Stanley and David Hay considering the sale of the America House office building in Bucharest could potentially signify a renewed interest in investing in real-estate in Bucharest. This interest is likely driven by the rising office rents and fall in vacancy rates in premium Bucharest business districts, making it an attractive prospect for institutional investors. America House, originally built by GTC and sold for EUR 120 million in 2007 with a record-breaking 5.6% yield, boasts a prime location in Bucharest's Victoriei Square, making it a coveted asset in Romania's capital. The property, which underwent a EUR 10 million modernization and refurbishment in 2022, currently fetches a rental rate of EUR 20 per square meter, reflecting the area's burgeoning demand.
