AFI Europe, a prominent real estate developer in Central and Eastern Europe, has purchased the myhive Victoriei office building from the Austrian group IMMOFINANZ. The transaction, valued at approximately €27 million, was facilitated by Colliers and Cushman & Wakefield Echinox. This acquisition aligns with AFI Europe’s strategic expansion in Romania, where it plans to transform the iconic building into a modern Class A property with mixed-use spaces, including offices, retail, and leisure areas.

The myhive Victoriei building, completed in 1998, was the first modern office structure in Bucharest and remains the tallest building in the city center, offering a built area of 38,703 square meters. A major renovation in 2012 brought the property up to modern standards, and a recent construction permit, now transferred to AFI Europe, allows for a complete overhaul to elevate the building to Class A status.

Radka Doehring, a member of the executive board of IMMOFINANZ, emphasized that the successful sale of the property reflects their ongoing strategy to optimize their portfolio, even in challenging market conditions. The proceeds from the sale will be reinvested in high-yield assets within their core markets.

Doron Klein, Deputy CEO of AFI Europe and CEO of AFI Europe Romania and Czech Republic, noted that this acquisition is a key part of AFI Europe’s long-term strategic development plan in Romania. Klein highlighted the company’s commitment to transforming the historic site into a state-of-the-art property that meets ESG standards and contributes to the local economy.

The transaction also underscores the growing activity in Romania’s real estate investment market. In the first half of 2024, commercial real estate transactions in the country reached €419 million, more than doubling the €167 million recorded in the same period of 2023. Despite the ongoing challenges posed by risk costs, the outlook for 2024 remains positive, with potential interest rate cuts and indications that the market has reached its lowest point in terms of activity and prices in Western Europe.

Romania has led the way in real estate investment performance among the major economies of Central and Eastern Europe, a notable achievement given the overall downturn in the region’s real estate market, which has seen one of the lowest transaction volumes in the past decade.

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