Hagag and Niro team up to refurbish office building in northern Bucharest
<p>Real estate developer Hagag Development Europe signed a partnership with Romanian peer Niro Investment Group to refurbish a 6,800 square meter office building built by the latter on land under concession in northern Bucharest.&nbsp;</p>

<p>The building will be renovated, and the first tenants will move in at the beginning of July. 18% of the office space has already been leased, and an occupancy rate of at least 70% is expected by the end of this year.</p>

<p>Hagag paid EUR 5 million to purchase 50% of the office building and will cover 50% of the EUR 0.5 million refurbishing cost, according to <a href="https://www.economica.net/hagag-se-asociaza-cu-niro-investments-si-cumpara-50-dintr-o-cladire-de-birouri-din-bucuresti_828248.html?mc_cid=2aa8fd65ed&amp;mc_eid=cd1f92f96c" rel="noopener" target="_blank">Economica.net</a>.</p>

<p>Niro holds 49-year concession rights over the land under a contract concluded in 2005 with the state. The remaining duration of the concession contract is thus approximately 29.5 years, until September 15, 2054.</p>

<p>At the end of the concession period, the building will revert to the Romanian state, free of charge. Niro holds a pre-emptive right to purchase the land and the building at market price, if the asset is put up for sale by the concessionaire at that time.</p>

<p><em>iulian@romania-insider.com</em></p>

<p><em>(Photo source: <a href="https://www.dreamstime.com/">Tsyhun/Dreamstime.com</a>)</em></p>