Avrig 35 raises bet in Bucharest by $100 million

Avrig 35 SA, one of the largest investors on the Bucharest real estate market, is planning to invest more than $100 million in this field, executive manager Alexander Hergan said.

Avrig 35, a Dutch-capital company almost entirely held by US-based F&C Group is now preparing six projects, three of which aimed at office building construction and set to commence by late next year.

“We will erect two more office buildings to make up a complex over 40,000 sqm wide, as well as the new headquarters of the Embassy of Canada in Bucharest, located on the Kiseleff Blvd,” Hergan said. The company also has three lesser projects aimed at industrial constructions (storage facilities and production halls).

“We’ve bought more than 100 plots of land in Bucharest,” Hergan said. He did not care to disclose the exact locations, though.

Avrig 35 at the end of last week began working on the largest office building in the city, Charles de Gaulle Plaza, together with the representatives of the mobile telephony operator MobiFon-Connex, the most important tenant of this building.

The over 40,000 sqm wide business centre requires a $34 million investment and will be finished in a little less than a year, Avrig 35 official says.

Hergan specified the company had taken a $22 million loan from HVB Bank to erect the building, with the remaining $12 million covered from its own resources. The investment will be recovered in six or seven years.

The building, located in Charles de Gaulle Square, will have 22,000 sqm in office space available for rent and distributed over 16 floors, as well as a parking lot with 340 spots and five underground levels.