America House renews contracts for over 30% of the office surface
DTZ ECHINOX - 8 June 2011
AEW has recently renewed lease agreements for over 30% of the office surface for America House Office Building, for periods up to 8 years. S&T, provider of IT services in CEE, has renewed the agreement for 3,000 sq m for another 8 years, Tuca Zbarcea si Asociatii, reputable law firm occupying 2,200 sq m, have also chosen America House to accommodate their headquarters for another 5 years interval.
Other companies such as Ericsson, Mastercard, Cisco have also renewed their leasing agreements for periods from 3 to 5 years.
On the retail and leisure segment, America House is now accommodating two new restaurants: Fitto Café, which has signed a 120 sq m area for a 5 years interval, and Be Nat, part of the Oliviers &Co Group, operating on the former premises of French Bakery, on the ground floor and first floor. Both restaurants belong to the bio food concept and ensure a healthy and diverse lunch alternative for the employees working in the building, as well as for the general public. Oliviers &Co has chosen America House to open their second shop in Bucharest, starting this fall. With the recent openings and some more to follow shortly, America House optimizes the retail mix, offering a wide range of products and services from prestigious local and international brands such as Starbucks, Top Clean, Credit Europe Bank, BCR, HelpNet, Samsonite etc.
'Headline rent for office premises in America House is following the market trend in CBD and reaches in average €19/sq m. We are very happy and proud about all renewals and new leases signed within the last 6 months which amount to 8,000 sq m. This is a confirmation that America House is a true landmark building and an attractive destination for large international companies.' commented Emmanuel Gluntz, Asset Management Central Europe - Director, AEW Europe
DTZ Echinox acts as exclusive leasing agent for the available office spaces in America House. The building currently has two available floors of 1,700 sq m each, however, the landlord is in advanced negotiations for the lease of one of them.
'America House currently offers one of the most flexible and competitive accommodation solutions for companies that aim to optimize their accessibility, visibility, space efficiency and occupation costs. At the same time, the building features a wide range of additional services, providing a welcoming and comfortable environment for staff and business partners.' Commented Madalina Cojocaru (photo), Head of the Office Department, DTZ Echinox
Since the beginning of the year, the DTZ Echinox office team has leased 18,500 sq m of office space to blue chip international companies from fields like IT, pharma, banking, in the center and northern part of Bucharest.
Delivered in 2006 by GTC and then acquired by PBW2 Fund managed by AEW Europe, America House is one of the landmark projects in the center of Bucharest. The building has 27,500 sq m total rentable area, three levels of underground parking with over 350 parking spaces and an ample retail and leisure area, spreading on the ground floor and first floor.
Regarding the vacancy rate in Bucharest over the medium term, DTZ Research forecasts a further decrease of the availability ratio based on a constant level of net take-up coupled with limited new supply. Therefore we project an average vacancy rate of 15.5% by the end of 2011.
Exclusively in the case of Bucharest CBD area, this indicator could reach an even lower value as no significant delivery is projected for the next 2 years.
Currently, the prime headline rents are ranging between €18.5-19.5 per sq. m per month for the central area, €13-16 per sq. m per month for semi central locations whilst rents for decentralized business districts were in range of €9-12 per sq. m per month. According to DTZ's estimations rents will remain stable for the remainder of 2011, however we forecast that rental levels will start to increase from the H1 2012.
The total office stock within the subject area is stated at around 208,480 sq. m, representing approximately 12% out of the total Bucharest office stock at the end of 2010. At the moment of writing, the stock within the area comprises 12 class A office buildings (out of which one is owner occupied) and another 13 class B schemes (out of which one is owner occupied).
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AEW Europe is one of the leading European real estate asset and investment managers. Together with AEW Capital Management in the United States and Asia, AEW Europe and its regulated subsidiaries - AEW Europe LLP, NAMI-AEW Europe and AEW Europe SGP - form a global real estate platform with more than €33 billion in assets under management (of which €17,3 billion is in Europe). AEW has over 30 years experience in the management of real estate funds and separate institutional mandates with 500 employees in 15 locations around the world, including head offices in Boston, London, Paris and Singapore. AEW's innovative investment strategies are research-driven and rigorously controlled for risk, with implementation carried out by professional teams in its extensive network of local offices on the ground.
AEW regularly receives industry awards in recognition of its investment performance and adherence to principles of sustainability. AEW Europe is a founding member of the group of leading real estate fund managers applying the Bureau Veritas 'Green Rating' standards to its European investment portfolio and is a signatory to the United Nations' Principles for Responsible Investment. The company is also an active member of the European Association for Investors in Non-listed Real Estate Funds (INREV) and its portfolios are benchmarked by the Investment Property Databank (IPD). AEW Europe is a subsidiary of Natixis Global Asset Management, one of the top 15 asset managers in the world.
The company has entered the Romanian market in 2007 through the acquisition of America House, a landmark A class office building in Piata Victoriei. Their portfolio also comprises a retail project in Targu Mures.
DTZ is a global real estate services firm with offices in 140 cities and 42 countries (across Europe, Middle East and Africa, Asia Pacific and the Americas). The firm provides advice and on-the-ground delivery to investors, developers, corporate and public sector occupiers and financial intermediaries. DTZ works with clients across the breadth of their real estate needs, spanning all real estate sectors and encompassing Investment Agency, Leasing Agency and Brokerage, Property Management, Project Management and Building Consultancy, Valuation, Investment and Asset Management, Consulting, and Research. The parent company, DTZ Holdings plc, has been listed on the London Stock Exchange since 1987.
In November 2002, after 9 years of successful operations on the Romanian real estate market, Echinox Consulting entered a partnership agreement with the multinational company DTZ, one of the leading global real estate services companies. Therefore Echinox Consulting became the local DTZ representative office, operating under the trade name of DTZ Echinox.
DTZ Echinox provides a full range of services to investors, occupiers and owners across all sectors of the real estate market.
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