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Herastrau Property Development Bucharest

A Navigator client is seeking EUR 1,990,000, representing 39% of equity, to develop a 494-unit, 14,180 m2 housing development in Bucharest, Romania. The Herastrau project will develop the first large-scale, purpose‐built student housing complex in central Bucharest, housing 506 students in 484 units.

 

A Navigator client is seeking EUR 1,990,000, representing 39% of equity, to develop a 494-unit, 14,180 m2 housing development in Bucharest, Romania.

The Herastrau project will develop the first large-scale, purpose‐built student housing complex in central Bucharest, housing 506 students in 484 units.

The project is located in the Romexport area 500 m from the Mai 1 metro station. The University of Agricultural Sciences and the Veterinary Medicine and the the Romano-Americana University are located 200 m away. The Piata Romana and Piata Universitatii universities are 5 and 6 stops away on the Mai 1st line.

The Herastrau project is part of a larger mixed-use development by an international property group. The project will offer affordable luxury, catering and other services, and comprises a unique housing offer in a rapidly-developing area.

The majority of income is from room lettings at a monthly, all-inclusive average rent of EUR 225/student (including VAT).

Due to significant supply and demand imbalance in Bucharest, we expect a high occupancy rate of 95% and an average tenancy period of 11.5 months.

Additional rental income is derived from retail space (EUR 25/m2 per month) on the ground floor. Non-rental income from laundry, parking, vending machines and advertising is additional.

The project comprises 484 units in 12 above-ground floors, with the majority of units comprising high-spec studios with en-suite bathrooms.

The ground floor includes 460 m2 of retail space. An underground car park with 96 spaces will be available underground.

Facilities:

  • Café
  • Fitness Centre
  • Courtyard Communuty Area
  • Communal Study / TV Rooms
  • Landry
  • Games Space
  • Storage

Benefits

  • Central Location
  • Free Internet Access
  • 24/7 Security
  • Contemporary Design
  • Cashless Environment
  • Student Services Support
  • Onsite Maintenance Staff

Investment Structure

51% of equity is held by a UK property fund and property development group based in London. This fund is developing a larger property around the Herastrau project.

10% of equity is held by GGH, a Cyprus investment management firm specialising in niche real estate investments in Central & South Eastern Europe. GGH will also act as developer and property manager.

A third investor is sought for 39% of equity, valued at EUR 1,990,000.

For further information, please contact Philip Ammerman at pga@navigator-consulting.com.

 

This notice is being furnished for the sole purpose of assisting the recipient in deciding whether to proceed with further analysis of this potential opportunity. This notice is for informational purposes only and shall not be construed as an offer or solicitation for the subscription or purchase or sale of any securities, or as an invitation, inducement or intermediation for the sale, subscription or purchase of securities, or form the basis of any decision to finance the transaction described herein, or for engaging in any other transaction.