Piraeus Bank, the main shareholder of The Landmark office complex in central Bucharest, will look to sell the project once it is fully leased.
“Currently, the occupancy rate is 65 percent of the project and we believe that by the end of the year, the entire office space will be fully rented, and we will be at a pretty good level with the retail space,” Nikos Chaniotis, deputy general manager, Piraeus Bank Romania, told BR.
The office complex comprises 3 separate 7-storey buildings and 3-level basement parking covering 21,000 sqm of leasable space.
The Landmark’s main tenant is French energy multinational Total Group, which has its back office operations here. The building also hosts IT company UiPath, law firm Wolftheiss, as well as GTM, Systematic, Premier Energy, Tank&Raft. For the rest of the office space, the executive said there are negotiations with firms in IT and FMCG.
Chaniotis says the rent for offices stands at EUR 17 per sqm, while for the retail component the prices will be higher. At present, the bank is focused on fully leasing the office component and has hired Knight Frank Romania as exclusive agent.
In August, the bank appointed Colliers International as property manager for the office buildings located between Romana and Victoriei squares.
Piraeus Bank, which holds a 75 percent stake in the project, aims to finish the leasing phase this year, and then it might start thinking about the exit phase.
“There will be an exit for the bank, although we love this project and we are very proud of it, most probably we will sell it because we’re not in this sector,” said Chaniotis, claiming that the bank will not make additional investments in the real estate sector.
“We don’t have a timeframe, we are not in a hurry,” said Chaniotis, on the exit strategy.
Read more about the bank’s plans and the outlook of the office market in the next edition of Business Review magazine that will be published later this month.